Oil industry officials react to prices nearly doubling since Feb - KWES NewsWest 9 / Midland, Odessa, Big Spring, TX: newswest9.com |

Oil industry officials react to prices nearly doubling since February

On Wednesday oil prices closed at $51 per barrel nearly doubling since February. (Source: KWES) On Wednesday oil prices closed at $51 per barrel nearly doubling since February. (Source: KWES)
MIDLAND-ODESSA, TX (KWES) -

On Wednesday, the price of oil closed at $51.50, nearly doubling since February. Those in the industry said if outside factors stay where they are, this could be the norm for the time being.

J Ross Lacy, President of Lacy Oil Corporation said, "By looking at the supply and demand and seeing how our production is declining it looks like we are going to stay in this range hopefully the $50, $60 range.

Another factor helping the cause of oil getting to this point is what those in the industry call the summer driving season.

Morris Burns, an oil expert said, "We're going into a season where everybody is driving and we'll probably see more people driving this summer because gasoline is the cheapest it's been in 10-12 years so instead of taking an airplane, we'll drive."

Both Lacy and Burns believed the uptick in oil prices also means more people have gone back to work which also helps out the local businesses as well.

"It allows service companies to go out there and hire more people, they are a little bit busier right now. For every oil rig operated there's about 100 jobs associated with that," said Lacy.

"If you live in the Permian Basin you're in the oil business because as the price of oil goes up, activity goes up, more people will eat out, more people will go buy a new car and new clothes," said Burns

They both believed after today many people can be a little optimistic after seeing oil hit the $50 dollar range.

"I had coffee with some people this morning that are looking at but haven't started drilling yet but they are certainly looking at leases and so forth," said Burns.

"It's positive signs for everybody in the Permian Basin. It's definitely going in the right direction. I much rather see $51 oil than $26 oil," said Lacy."

Lacy and Burns added there are companies currently looking to hire and fir those who may be still skeptical you can always check the market to see where the price of oil is currently at.

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