Permian Basin Oil And Gas Activity Helps Panhandle Economy - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Permian Basin Oil And Gas Activity Helps Panhandle Economy

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Amarillo, TX - With an increase in oil and gas activity from the Permian Basin, the Panhandle is beginning to see an economic boost. 

With increased crude oil prices fueling the basin's oil boom, an increase in drilling activity is helping the Amarillo economy.

Although drilling activity from the Permian Basin doesn't spread all the way to Amarillo, the production is benefiting surrounding cities, which use the panhandle as a hub.

Local economist, Karr Ingham, said higher prices for crude oil and natural gas in the Texas panhandle are a net economic positive, which brings more economic benefit to the region than the negatives from higher energy prices.

He said in terms of increased employment, dollar amounts and overall economic activities, the panhandle is generating these outcomes a result of oil and gas activity rising.

Today, the Permian Basin has an increased rig count of about 460 compared to last year's 396 oil rigs.

With the expansion of rigs and an increase in oil prices, companies can afford to drill through rock they once weren't able to reach.

Tom McCarty, an oil and gas broker, said half the oil rigs in the nation are in the Permian Basin right now.

He said some say the basin extends all the way up to Lubbock county, proving its enormity.

Officials said this large basin will continue to retrieve this oil, which will develop a constant increase for the Amarillo economy.

The increase in labor in the areas the Permian Basin distributes to will allow the Panhandle to see an increase in retail sales, restaurants, and other consumer business revenues.