Could lower gas prices hurt South Texas economy?
Prices for barrel of oil drop to $68, down from $100 last year
SAN ANTONIO – While the significant price drop in oil may be good for consumers, it might not be good for oil and gas producers in the Eagle Ford Shale.
"This is the first time I think that we've had to deal with this in the Eagle Ford Shale. It's the buzz right now. Everybody's talking about it. said South Texas Energy and Economic Roundtable President, Omar Garcia. "You know again it's top of mind for steer operators and the companies we represent."
Garcia said oil and gas industry leaders are monitoring the situation.
"Oil will continue to be produced in South Texas in 2015. Jobs will continue to be filled next year. At what pace? What level of activity? That's gonna depend on the price of oil," Garcia said.
"I think there's good and bad to it. I'm a little concerned it may slow down the industry a bit," said shale driver Wayne Kizer.
"It's great for our company as far as cheaper gas prices. We're filling up these big trucks every day," said shale worker Drew Penick.
The question on the minds of many people working and living in the South Texas shale region, is will the fracking sites scale back production?
"I think it's just everybody adjusting their forecast and their drilling schedules for next year based on where the prices are today," Garcia said.
The bottom line, according to Garcia, that despite the ebb and flow, the Eagle Ford Shale is a sustainable play.
Copyright 2014 by KSAT - All rights reserved.