Chairman Craddick: Texas Energy Sector on Upswing; RRC Faces Critical Budget Needs – Meets with Top Dallas Federal Reserve Economists to Discuss Future of Texas Energy
DALLAS – Chairman Christi Craddick met with leadership at the Federal Reserve Bank of Dallas (Dallas Fed) this week to discuss this year’s outlook for the state’s oil and gas industry. According to economists with the Dallas Fed, Texas oil and gas drilling activity will increase throughout this year.
“Oil and gas production today makes up more than 30 percent of our state’s overall economy,” Craddick said. “It is critical for the industry’s continued success and for the public’s safety that the Railroad Commission has as much information as possible about the industry’s near-term future as we determine strategic plans for the agency.”
The Railroad Commission of Texas is currently presenting its 2018-19 biennium budget request to legislators as they meet for the 85th Legislative Session. Today’s briefing provides greater evidence of the need for more sustainable funding for the Commission.
“We know from previous downturns that when the oil and gas industry ramps up, it ramps up quickly,” Craddick said. “We must be fully staffed and prepared for an uptick in industry activity. I am optimistic about oil and gas production growth in Texas this year, but look forward to seeing a continued rise in permitting and new drilling reports before we expect a significant shift within the industry. Until then, we will continue to move resources planned for permitting to other areas of the agency as needed.”
The Dallas branch of the U. S. Federal Reserve System is one of 12 regional Reserve Banks that, along with the Federal Reserve Board in Washington, D.C., make up the nation’s central bank. The Dallas Fed also serves as a research institution providing information on the United States and Texas economies, specializing in energy sector analysis in the Eleventh Federal Reserve District.