The global oil industry is slated to make some big investments in 2017 following a painful two-year spending slump. And the U.S. — specifically Texas — is expected to lead the recovery.
Industry research firm Wood Mackenzie predicts U.S. oil sector spending will grow by 23% to $61 billion this year as American companies capitalize on rising crude prices.
Fracking in Texas and parts of New Mexico will really ramp up as American drillers look to extract more oil and gas from the Permian basin, said Malcolm Dickson, a principal oil analyst at Wood Mackenzie.
“The Permian is the hottest play around and it’s driving this growth in production… and growth in spending,” he said.
If crude prices keep rising and business owners feel good about the economic effects of a Trump presidency, there could be even more spending, according to the report.
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