Are Exxon's record profits reaching East Texas?
POSTED: Monday, February 2, 2009 - 7:21pm
UPDATED: Wednesday, March 17, 2010 - 12:00pm
KILGORE - Recent reports show the oil business was booming in 2008 — several national and local oil and gas companies had record years.
Bill Adamson owns Sabine Pipe Inc. in Kilgore and he said, "2008 was definitely a record year and it should of been for everyone in our business, Exxon is a very good example with a record year last year."
Exxon reported a profit of $45.2 billion for 2008, which is up from 40.6 billion in 2007.
The Texas Railroad Commission which regulates oil and gas in Texas, said the number of oil drilling licenses in Texas is the highest its been since 1985.
Ramona Nye is the spokesperson for the Texas Railroad Commission and she said, "Until October of last year, high energy prices, high oil prices, high natural gas prices were driving this permit activity."
ADAMSON SAID, "The profits Exxon made last year are being seen right here in East Texas. That money trickles down in other ways such as development of oil and gas, someone had to go out and explore the Haynesville Shale whether its a big large or small company."
He also said, "Several of Exxon's former employees are retired in East Texas...they are reaping the benefits of the stock and they are spending their money in East Texas."
Oil experts say although 2008 was a good year, but the business is expected to slow down later on this year.