Permian Basin Economy Continues Robust

Continued historic low unemployment, combined with increasing employment growth, has led the Federal Reserve Bank of Dallas to note that the Permian Basin economy continued strong through the first half of 2018. Employment growth in Q2 2018 was 2.1%, stronger than Q1’s 1.6%, while the unemployment rate of 2.6% in June 2018 was near historic lows, according to Dallas Fed analysts.

Though the rig count flattened between May and June, production was at 3.26 barrels per day in June, a 2.1% rise from May, and a 6.6% quarter-over-quarter increase. The current price of West Texas Intermediate crude is around $70.

In the meantime, existing home sales in Midland-Odessa increased 8.6% year over year, with home prices continuing to accelerate, the Dallas Fed noted.

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