The Federal Reserve Bank of Dallas reported that oil & gas companies in the 11th district, which includes Texas, expect further growth in 2014.
Texas respondents indicated particularly strong activity levels in energy, which means the Eagle Ford Job market will remain robust.
The Fed also noted demand for oilfield services was steady even though the rig count had fallen in response to more wells being drilled per rig.
Other economic highlights from the region included:
- Refining and petrochemical contacts reported extreme difficulty finding engineers and construction workers. They also noted rising wages
- Manufacturers of construction related products reported slightly higher demand
- Chemical production in the Gulf Coast region was up
- Refinery utilization rates were down with the fall maintenance season
- Winter fuel standards are pulling prices down at refineries, but margins remain healthy
- Business relocations to Texas fueled demand for non-financial services
- Railroad contacts said U.S. cargo volumes grew strongly during the reporting period and noted chemicals shipments were robust
- “A contact noted Houston may be close to having too much office development in the works.”
- Drought conditions continue to ease
The highlights came from the Dallas Beige Book, which summarizes recent economic conditions in the Eleventh District.
Read the full beige book at dallasfed.org