A report by the Federal Reserve Bank of Dallas indicated that, in May, employment in the Permian basin remained steady, hovering around 158,000 jobs since February. This comes following the period between mid-2014 and early-2016, when Permian employment dropped from approximately 180,000 to approximately 150,000 jobs.
The unemployment rate itself decreased from 4.4% in April to 4.1% in May. From mid-2014 to mid-2016, the unemployment rate grew from approximately 3% to approximately 6%. While the growth is encouraging, the report indicates that the labor force in the area shrunk by 5,500 people from April to May, 2017.
Crude oil production has remained on the upswing, with an average of 2.41 MMBOPD produced in June, 70,000 BOPD greater than the previous month. Since January alone, production levels have increased by 21%. The rig count growth for 2017 mirrors the steady growth in production.
The steady increase in oil production and rig counts has not created the same degree of growth in employment—though employment levels remain at a steady level.
The steadying of employment is mirrored in steadying oil prices, which now hover around $45 per barrel. Production and rig growth is taking place despite the lack of enormous growth in the price of oil, reflecting the industry’s ability to adapt to low prices in core producing acreage.
