North Texas, Don't Worry About the Oil & Gas Prices
Dallas faces less risk from the drop in oil prices compared to other parts of Texas, says SMU associate director of the Maguire Energy Institute Bud Weinstein. He was part of a panel hosted by Briggs Freeman Sotheby’s International Realty and Thompson & Knight on Tuesday. Bud says oil and gas made up 11% of the Texas economy in recent years. But in DFW, it’s just 3% of the economy. Unless that second shoe drops and oil goes to $20 to $30/barrel, there may not be much overall impact on real estate in DFW. The areas hardest hit have been the producing areas like the Permian Basin and Houston, he says.
Hunt Oil Company South America EVP Dennis Grindinger (left, with Briggs Freeman’s Vip Vipperman) says Hunt has cut capital expenses and operational expenses at a radical rate; technology allows levels of production at lower prices, but there will likely be one more reduction in production as rig counts decline. He cautions to be prepared for volatility. “We don’t know what the Saudis are doing. It’s going to be very hard to predict,” he says.