It’s Supply and Demand
By Bob Barber
Texans who have lived here a long time (my family has been here six generations) know that ever since they can remember, oil has played a large part in our economy. It’s hard to drive in any direction in Texas for an hour or two without passing a oil pump jack (like the picture).
From the Barnett Shale in north Texas, to the Haynesville Shale in East Texas, to the Eagle Ford Shale in South Texas, to the Cline and Wolfcamp Shales in West Texas’ Permian Basin – Texas is swimming in recently-discovered oil and natural gas reservoirs.
Just 2-3 years ago, hundreds of Texas families who had never had wealth were seeing $100,000 to $1,000,000 checks come in overnight. It was like winning the lottery. For some it lasted a few years, but for others it was very short lived.
Will we ever see the boom days of a few years ago? I believe yes, we will, because this has happened in Texas many times in its history. But, as always, the booms seem to disappear as quickly as they come. And now with the tremendous supply we have, which we did not have just a few years ago, it may be many years, if not a lifetime, before we experience another oil boom in Texas like many of us just experienced.