Houston Office Market Report

U.S. and allies look to Texas and the Gulf for oil production. The Russian invasion of Ukraine and corresponding sanctions on oil imports enacted by nations across the world had an abrupt impact on global energy trade and prices. Russian oil production fell by about 1 million barrels per day in April, shooting the average price above $100 per barrel. By mid-May, the U.S. Strategic Petroleum Reserve reached the lowest point since 1987, contributing to the Texas rig count climbing from 277 entering this year to 357 during that month. Foreign allies are eager to secure a reliable supply of oil and gas as well, verified by recent statements from Schlumberger, the world's largest oil-field service company stationed in Houston. Major firms are ramping up production and labor counts as these trends play out. BP is expecting to double crude output at the Thunder Horse project, and open Argos, its fifth platform in the Gulf.