MIDLAND, TX (KWES) - More possible good news for the oil industry. Russia and Saudi Arabia have put messages out saying they might be interested in continuing the OPEC cuts until March 2018.
It's a decision they made in December and put it in place for six months. Since the cuts, we've seen the market and oil prices stabilize and more active rigs.
"The price for WTI continues to trend upward and if takes a jump, then yeah, you could see an increase in rigs," said Stephen Robertson, Executive Vice President of the Permian Basin Petroleum Association. "If the cuts allow the prices to stay where they're at, we might see a modest increase."
The Permian Basin has three times more active rigs than we did a year ago and is still the most active basin in the U.S.
"There's a lot of people that are being able to get back to work and they've been out of work," said Robertson. "We're sure not anywhere close to the highs that we've experienced in the past decade, if not further back than that. So I think the people out here are excited about what the future holds, which might not have been what you would've said a few years back, so that's definitely the positive."
Robertson said exactly how much we benefit from the cuts all depends on OPEC keeping their word on cutting back. The oil industry is optimistic they will because promises have been kept the past five months.
OPEC meets again to make a decision about the extension on May 25. The local oil community said all signs point to them voting for the cuts to continue.