The Permian Basin’s oil industry is in a downturn exacerbated by historically low prices attributed to the COVID-19 pandemic.
A panel of experts late last month assessed the current situation for West Texas and gave suggestions as to what the region could do to rejuvenate the suffering sector.
It is not all doom and gloom, the panel deduced.
Quintana Capital Group Senior Partner Don Evans described the uncharacteristic drop in rig counts, mass layoffs and lackluster at best oil production as a pretty surreal experience.
“When you think about it, what’s happened to the Permian basin it’s as surreal to me as 911 was,” Evans told CBS 7.
Panelists could not just pinpoint one single cause of the downturn.
There were the price wars which sent shockwaves throughout the U.S. sector.
And the coronavirus pandemic, along with the subsequent stay-at-home orders and calls to socially distance, made traveling the last thing on the minds of millions in the U.S. and around the world.
But with state governments loosening restrictions and the price war now a bad memory, experts believe the oil sector will eventually turn a corner. Investment is needed to keep infrastructure solid, they added.
The panelists say the road back to what is considered normal in the region will be a long and arduous one. They acknowledged the resiliency of West Texans, saying the people are willing to embark on the journey to recovery.