Recent rise in oil prices has officials reacting

Recent rise in oil prices has officials reacting

MIDLAND-ODESSA, TX (KWES) - On Thursday, oil prices hit $40 per barrel the highest since February. Many feel production may be turning the corner but officials said the industry is not out of the woods yet.

Gary Johnson, owner of Johnson Brothers Oil Company in Odessa said "If you went out to drill today, you're looking at production not coming online for 6, 8, 9 months."

Johnson Brothers Oil Company has been in business for 70 years and has witnessed the oil industry's booms and busts.

"To me this is not nearly as bad as some that we've had in the past because there's still some activity going on. The biggest thing is that it's been so low because of the supply is so much greater than the demand," said Johnson.

Supply and demand is also what others believe is stopping oil prices from taking a bigger jump.

Stephen Robertson, Executive Vice President of the Permian Basin Petroleum Association said "Right now there's still a lot of factors out there that could be negative factors on the price. If prices can continue to go up and we can continue to keep supply and demand closer in line with each other then that's a positive stability for everybody."

Officials advise those in the industry to keep an eye on the changing prices.

"Keep up with what's going on and as price goes up and you can increase what you're doing. Just don't go crazy about it. Do it on a gradual basis," said Johnson.

Another piece of advice Johnson gave was for businesses to watch their finances and not take on a lot of debt.

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