Falling crude prices and weak natural gas pricing caused the Texas Petro Index to shed a point in June to 270. It was the first time in two-and-a-half years the TPI posted a decline.
Karr Ingham is the petroleum economist for the Texas Alliance of Energy Producers and creator of the index. He says that generally once the price of crude begins to fall, it tends to keep falling until the economy hits bottom.
“But this has been an interesting and unusual turn of events, in that we lost about $30 to $35 in terms of the crude oil price paid to producers, and now we fairly rapidly recovered about $15 of that. So it’s entirely possible that this could just be a temporary blip on the radar.”
On the plus side, the industry hit a record high of nearly 252,000 jobs in June. Ingham says that even if the decline in crude prices continues, employment should remain strong for the rest of the year.