Geologists recently announced the discovery of a massive oil field in West Texas, one that will lead to increased oil and gas output but may not help home values.
Zillow reports that oil prices have dipped substantially since the U.S. upped its oil production this decade, reaching $106 per barrel in June of 2014 and slinking down to $30 per barrel in February 2016. The price swing has hurt economic activity in Texas.
Home values in each of these areas largely did very well during the oil boom years. ... But as oil prices have held stubbornly low, oil production and discovery companies have cut jobs and oil-related economic activity has slowed or even contracted. Home values in the better-diversified economies in central and eastern Texas have largely managed to keep growing, but growth in West Texas – home to the latest big find – has stalled in the face of a tough oil economy.
PB Topical Ref
