Houston Small Oil Businesses Forced to Make Tough Choices Amid Downturn

The energy sector continues to get hammered as a result of the economic downturn. It's forced smaller, independent oil and gas companies to make difficult choices.

A recent University of Houston study shows the vast majority of local oil and gas workers are concerned about the future of the industry. Ron Neal is the co-owner of the small, independent company Houston Energy, L.P.

“We’ve had problems with oil and gas prices through the history of the industry, and this too will pass,” Neal told KTRH.

Neal says his company, which is primarily focused on offshore drilling, has closed their office and asked all employees to take a substantial pay cut for at least eight weeks.

“Oil and Gas producers have a silver lining in the sense that if you have wells that are producing, then you do have income,” Neal said. “Now, it may be dramatically lower, but you do have some income.”

The Coronavirus Outbreak plus a feud between Russia and Saudi Arabia caused the price of oil to dramatically fall in March. It remains below 30 dollars a barrel.

State regulators in Austin will consider curbing oil production in a meeting next week.

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