The Texas upstream (exploration and production) oil and gas economy is in a mild state of contraction midway through 2019 according to Karr Ingham, Petroleum Economist for the Texas Alliance of Energy Producers and the creator of the Texas Petro Index.  "The Petro Index achieved its cyclical peak in October 2018 and since then has declined for six of the last eight months, including four months in a row through June," said Ingham.  Crude oil and natural gas prices, the statewide rig count, the number of drilling permits issued, and industry employment have lost ground since that October peak, said Ingham.  The sheer volume of crude oil and natural gas production continues to increase, he said.

Ingham said there are numerous headwinds to expansion at the midway point in 2019 including sluggish crude oil prices, the natural gas supply glut which is hampering further crude oil production development in Texas, the imposition of steel tariffs adding direct industry upstream costs, and the current trade environment which is slowing national and global economic growth.

Ingham noted that Texas is now producing 42% of the nation's crude oil output, and the Texas portion of the Permian alone is contributing 25% to total US crude oil production.

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