Tag Archives: Texas oil production

Historical data suggest that, instead of boosting consumer spending, lower oil prices can harm the US economy’s growth prospects and persuade the Fed to stall its tightening plans.The link between oil prices and the health of the US economy has changed considerably this decade, especially as a result of the domestic energy sector boom. The US produced a  record high of 11.7 million barrels per day last week, versus only around 5 million in 2008.The epicentre of this oil boom, linked to...

Recent data suggest that the ‘Texas boom’ is continuing. The outlook for the state remains very robust thanks to rising oil prices.From a macroeconomic perspective, Texas is, in our view, the pivotal state to watch this year. Texas has been a major driving force of US growth lately, propelled by the domestic energy boom – the epicentre of which is the Permian Basin that straddles Texas and New Mexico.In Q4 2017 (latest data available), oil-rich Texas, which accounts for 9.0% of US GDP –...

The US economy is increasingly reliant on activity in Texas, itself very dependent to oil.Texas, the second state by GDP after California, but better endowed than the latter with oil resources, has become a major driver of US growth, especially since the energy boom of the 2010s. What we’ve learned with the ups and downs of oil prices over the past few years is that high oil prices are great for Texas and therefore positive for the US economy, in spite of the hit to the individual US...