At the 42nd annual Economic Forecast Conference hosted by SouthWest Bank in Odessa, Texas, economist Ray Perryman shared insights into the economic dynamics shaping the Permian Basin and broader Texas energy sector. The event brought together regional stakeholders to examine national and local economic trends, with a focus on energy markets and emerging technological demands.
Perryman, president of the Perryman Group, highlighted a prevailing sense of uncertainty affecting businesses and consumers alike. Factors such as fluctuating interest rates, trade policies, immigration regulations, and inflationary pressures have contributed to cautious sentiment in the short term.
Despite these challenges, he expressed confidence in the region’s long-term resilience. The Permian Basin, known for its vast energy reserves, remains a cornerstone of the state’s economy. Its strategic position may allow it to benefit from growing demand in energy-intensive industries, including artificial intelligence and data centers, sectors that require reliable and abundant power sources.
“The longer-term prospects will look very good,” Perryman stated, noting that energy will remain a critical component of the regional economy for decades. While acknowledging that current oil prices are below expected levels and the near-term outlook is subdued, he predicted improvement within the next few quarters.
He emphasized that although the local economy is currently softer than anticipated, the foundational strengths of the energy industry continue to support steady growth. With ongoing advancements and evolving global needs, the basin is well-positioned to maintain its significance in Texas’ economic landscape.
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SouthWest Bank hosts 42nd annual Economic Forecast Conference
ODESSA, Texas (KOSA) – As energy trends shift across Texas and the Permian Basin, economist Ray Perryman provided a new analysis on what those changes could mean for our local economy. n nFor the last 42 years, the Perryman Group has traveled across Texas to discuss some of the biggest economic issues happening nationally and within our region. n nRay Perryman, President of Perryman Group, said “Well, I think probably the biggest trend we’re seeing right now is a lot of uncertainty. And people are very concerned because of tariffs, because of immigration policy, because they don’t know what interest rates are going to do. Cost-inflation has people concerned, so I think there’s a lot of uncertainty out there right now.” n nAs the Permian Basin’s economic base is different from the rest of the country, it has some of the most important resources to fuel the world. n nAnd with much more growth on the horizon, he says the basin may be better positioned than ever. n n“Some of the future paths in energy, I think, have a bigger impact here than elsewhere,” said Perryman. “And then also because we have so much energy, I think we’re in a pretty good position right now to capture some of the new emerging activity in artificial intelligence and things like that, that we historically maybe haven’t been as quite as good position to capture.” n nDespite some short-term challenges, Perryman says the region’s economic outlook remains steady. n nHe points to the energy sector as a long-time driver that will continue to shape the basin’s future. n n“This too shall pass. The longer-term prospects will look very good. Energy is going to continue to be a very, very important part of this economy for decades to come,” he added. n nAccording to Perryman, right now the local economy is ‘softer’ than what most economists have imagined, saying oil prices aren’t quite where they should be. n n“There’s a lot of uncertainty out there as I mentioned earlier, so I think for the next two or three quarters it’s going to be kind of a- it’s going to be kind of difficult. Beyond that, I think things start to move in the right direction,” said Perryman. n nWhile the region may be feeling some pressure right now, Perryman expects the Permian Basin to remain a critical force in Texas’ economy.