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Improved Prices Lead to Strong Investment From Area Oil And Gas Operators

Release Date: 2018-10-22

By: Pierce Nahigya

After the Brent and Western Texas Intermediate (WTI) crude oil benchmarks reached a four-year high in October, the Energy Information Administration expects prices to remain steady into next year. Prices are forecast to average $74 per barrel (bbl) by the end of 2018, a marked improvement over 2017’s $54.25 bbl.

The oil and gas industry is a major employer in California, responsible for 1.6% of California employment and 2.2% – or $33 billion – of its labor income, according to an analysis by the Los Angeles County Economic Development Corporation. The industry generates $26.4 billion in state and local tax revenues.

“We are in a good economic environment for oil and gas production. Prices are up,” David Slater, executive vice president and chief operating officer at Signal Hill Petroleum (SHP), told the Business Journal. After deactivating some of its rigs during the 2016 slump, Slater said he is excited to get SHP’s larger rig, Rig No. 6, back online.

Read more on the Long Beach Business Journal