It is no secret that falling oil prices have cast a shadow over the economic growth that has taken place in Texas over the past five years. With oil prices slipping more than 50 percent since June, oil companies are looking to become leaner and more efficient to better manage existing investments.
However, The Dallas Business Journal reports that despite market changes, some areas of the state are still optimistic about growth opportunities. In South Texas, rail yards are blossoming and many ancillary businesses to the energy industry are realizing considerable success.
"Despite oil prices, we still see growth and opportunity at this particular location," Mike Cundiff, owner of Ironhorse Resources, was quoted as saying at the recent Southwest Rail Conference in Dallas.
Cundiff has found success in providing the extensive amounts of sand required for drilling in the region and hauling off crude oil to processing plants.
One city in particular was held up as an example for the power of the energy industry to bring economic development. Cotulla, a small town off Interstate 35, is in the midst of building an expanded airport with the longest runway in the region, as well as constructing new railroads, pipelines and highways. Creating this infrastructure will provide necessary support for local energy players, as well as potentially create thousands of new jobs.
Larry Dovalina, interim city manager for Cotulla, said that potential opportunities to export natural gas are also instilling confidence in residents.
"As national policy changes and as permitting occurs related to liquid natural gas that all of these elements, rail, aviation, pipelines and highways, are crucial and essential for the cities to grow in an appropriate way," Dovalina told the source.
As market conditions put extra pressure on organizations to better manage costs, some oil drilling companies may experience the need for oil field management consulting to help ensure they are operating at their peak.