The Federal Reserve Bank of Dallas has doubled its estimates for job losses this year through October in the oil and gas industry of Texas, the largest oil-producing state in the U.S., as companies rein in spending in the face of volatile oil prices.
In a report released on Dec. 17, the Federal Bank said it expects about 8,100 job losses in Texas' oil and gas sector, from an earlier estimate of 4,000 losses.
Employment in the U.S oil and gas sector fell for the first time in 14 months in November, according to data from the U.S. Bureau of Labor Statistics.
The report also shows home prices and sales have fallen in Texas' Permian Basin as more people in the state's oil and gas sector are likely to lose jobs.
Median home price in the basin was $301,045 in October, down 2.6% from August, when it peaked at $309,094, while monthly home sales edged lower to 372 units in October, dropping 3.6% from the previous month, the report said.
U.S. oil prices have hovered below $60 a barrel for the most part of the year, prompting many energy firms to cut staff and reduce budgets, even as major oil-exporting countries have curbed production.
Earlier this month, top fracking provider Halliburton Co. closed its Oklahoma office, impacting hundreds of workers, while Superior Energy Services Inc. followed suit and said Dec. 16 it will shut its hydraulic fracturing unit.
Last week, Basic Energy Services said it would sell most of its hydraulic fracturing equipment, citing weaker activity and pricing.
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