The Midland Reporter-Telegram reported October 10 that the Texas Permian Basin Petroleum Index in August was up 10.3 percent over the same period the previous year, driven by record drilling permits and a high rig count, despite softening oil prices. The state’s Railroad Commission issued a record 1,179 drilling permits this August, 70.6 percent more than the 691 issued in August 2013. Employment figures, too, remained excellent, with the August average of 33,670 topping last August’s numbers by 11.3 percent. Employment in the Permian oil patch is up 8.6 percent so far this year over last year’s average.
“Obviously, these kinds of numbers make it very clear that the West Texas oil boom is far from over. It has not even begun to slow down,” said TAYO CEO Scott Wheeler. “Our company remains committed to capitalizing on this historic economic expansion by investing in the kind of real estate that is absolutely necessary for the communities in West Texas to handle this kind of incredible growth.”
The major increase in oil and gas employment and activity in Texas has created a tight demand for real estate near the Permian Basin, the new heart of U.S. oil production. TAYO is building a portfolio of real estate assets in the region to capitalize on the historic influx of workers and capital. The company has already acquired multiple properties located on or near the Permian Basin and has executed a letter of intent to form a property development joint venture with The Home Masters Inc.
Texas is home to the Eagle Ford Shale in South Texas and Cline Shale in West Texas’ Permian Basin – two of the world’s largest unconventional resource plays expected to produce for decades. Cline Shale is an intensive oil and natural gas exploration and production region in the eastern shelf of the Permian Basin in West Texas – a multi-county region between Midland-Odessa, San Angelo and Abilene – estimated to bring 15 years of drilling activity and at least 30 years of oil production. The Permian Basin of West Texas and eastern New Mexico, which contains more than 5 billion barrels of proven oil reserves and estimates of 30 billion barrels of recoverable oil, outranks Alaska and the Gulf of Mexico as the top oil opportunity region in North America. The American Oil & Gas Reporter says commercial and residential real estate development is a key factor in successfully keeping up with the economic growth that comes with the boom in those areas.