Permian Basin Rig Count, Employment Slowing

While economic indicators in West Texas overall continued strong, Permian Basin rig count and employment slowed in July and August 2018. A report from the Federal Reserve Bank of Dallas noted that “employment continues to reach fresh highs, but year-over-year growth is slowing.” Annualized job growth in July was 7.4%, led by Midland. Odessa, in the meantime, posted two months of employment decline for the first time since 2016.

Meanwhile, August’s rig count stood at 483, a slight increase over July’s 479. Dallas Fed analysts pointed out that the rig count is slowing, partially due to pipeline constraints in the Permian Basin.

The average price of a home was $286,700 in July, an increase of just under 1% from June. Home sales slowed 2%, month over month, though were 9.5% above July 2017’s numbers, the Dallas Fed noted.