CORPUS CHRISTI, Texas — The recent spike in oil prices might not prove to be beneficial to those who work in the oil field.
Gus Barrera, President and CEO of IBC Bank said the ups and downs in oil prices are driving many workers to look for work in other fields.
"I think at the last downturn in the oil and gas industry a lot of the workers said I'm out," Barrera said. "And so now that the rotary and rig count has picked up they're looking to hire, and they just can't fill those positions fast enough right now."
The good news is coming from surveys conducted by the Texas Independent Producers and Royalty Owners Association and from the Texas Oil and Gas Association.
Former railroad commissioner and current TXOGA president Todd Staples said it's welcomes news for south Texas and the state.
"We have now about a ten percent job gain year over year from January of 2021 to January 2022," Staples said. "We've had consistent job increases regaining about 19,000 jobs but we need an even stronger signal to grow more rapidly."
One such signal according to Staples, would be for President Biden to change his mind about the keystone oil pipeline project. Staples said for every direct oil job, an additional 2.2 jobs are created in support industries.
Barrera said the labor shortage will have the same impact as spiking oil prices.
"I can see probably within the next six months to a year where the wage pressures are going to continue," Barrera said. "The demand is going to go up and the competition will go up which is going to lead to, obviously that's going to be passed on to higher prices."
The demand for oil field workers will continue for the foreseeable future.
More from 3News on KIIITV.com:
- Islanders win Southland crown, advance to the NCAA Tournament for first time in 15 years
- New federal grant will aid in the crackdown of drug trafficking in Bishop
- Survivor of horrific Portland attack to share her story in new documentary
- Rise in oil, gas prices costs area volunteer fire departments pretty penny to fuel their fire trucks
- Russian Ballet Theatre, dance company with multi-national cast, changes name to RBT before Corpus Christi show
- Former Calallen ISD teacher Joseph Sandoval sentenced to 35 years in prison for sexual abuse of a child
- New wells going up in Bee County following rising oil, gas prices
Want to send us a news tip?
Put your name and contact information below so we can get in touch with you about your story should we have questions or need more information. We realize some stories are sensitive in nature. Let us know if you'd like to remain anonymous.
If you do not have a photo/video to submit, just click "OK" to skip that prompt.