US prospects in Oil in present times

Oil has become one of the commodities, to function the economies of the world since the times of massive industrialization. This precious commodity has become a necessary demand since the world is said to be driven by it. Since the move towards cleaner energy is said to be the new norm the prospects for growth in oil-producing cities and towns would now have to face a whiplash in terms of the ‘change’ the future brings.

The United States is one such example where the oil-producing regions like Texas, Dallas, Houston has seen a massive change in this regard. To see in terms of the oil production, it is fallen by a huge margin, since the beginning of the millennium. Since many initiatives were introduced to promote cleaner energy, the economy overall is now seeing a shift in its dependence on oil to the bare minimum. With the growth of the establishment of solar panels, wind projects have seen a massive leap to promote cleaner and sustainable energy.

Employment also has seen a drastic change in the oil-producing fields in the States. With the production falling to a minimum level to approximately 40-50 per cent, the labour market for this sector has taken a major hit. This has been the trend since the middle of the last decade. A policy to improve the job market for the employment opportunities for the sector remains to be seen in the Biden regime.

The oil field producing states now started to paint a very grim picture, and these towns now have become deserted. The kind of development in these cities has become stagnant leaving many moving to different towns and cities. It’s never been seen before a trend of this kind. Many of the oil field owners never planning to leave, since they do feel there is a future for their products in the economy. Hope has not been lost by the owners of the oil fields.

The problem now these oil producers face is the kind of politics that are in place. The permits for the production of the oil and the lease permits have become a problem. In addition, the pandemic has played a negative impact in terms of producing oil in the nation. The raw materials and manpower, in particular, have seen a major shortage. This has impacted the sector to a great extent. The global scenario has changed since the start of the war between Ukraine and Russia. Oil purchased from Russia to be replaced with alternative options is one way to control the war.

The sector has faced losses in the last two years owing to the pandemic. The growth back to the sector to optimum levels remains to be seen in the distant future, as the sector is moving in caution. Drilling of new rigs would have a lot of investments and costs built-in, and the investors to bring in confidence to get the expected returns is a tough pill to swallow. This kind of recovery would take some time. Anticipation for good times to follow is all we can wait and watch.