Drastic Drop in Oil Drilling in TX Hurts Local Businesses
By: Lisa Carr
Updated: March 3, 2009
The number of oil drilling permits in Texas have plunged by a third in recent months. As gas prices soared last summer, it appeared oil companies couldn't pump oil fast enough, but after months of steadily increasing business, many companies in Texas have simply stopped drilling. Industry experts are blaming the bad economy that's caused a rapid drop in crude oil prices. Jay Norton of Norton energy drilling says his business has been hit hard.
"We've had three rigs operating for over a year now and all three of them are down right now. It's reminiscent of the 1986 pull back that we saw. It's kind of what happens in the oil field when you're dealing with commodities."
"We've had three rigs operating for over a year now and all three of them are down right now. It's reminiscent of the 1986 pull back that we saw. It's kind of what happens in the oil field when you're dealing with commodities."
Norton says one of his rigs is scheduled to drill next week, but business won't be back to normal until the economy and crude oil prices stabilize. He says he's hoping to see a rebound in the drilling business in the next two to three months.
