Stronger economic growth could create new incentives for oil and gas producers to maximize output


If economic growth continues to pick up, oil producers could be rushing to maximize output and take advantage of rising prices. Implementing a hydraulic jet pump can be particularly useful in this area.

While many Americans remain out of work and the state of the U.S. economy leaves much to be desired, there is a growing body of evidence that suggests better times are on the horizon.

Surveys reflect a consumer base that is ready to start spending more. For example, a recent poll conducted by CouponCabin showed that more than 50 percent of over 2,000 survey respondents expect 2013 to offer a better financial situation, compared to last year.

Meanwhile, the most recent report from the U.S. Bureau of Labor Statistics (BLS) highlighted a previously unnoticed bump in employment that occurred toward the end of 2012. The agency revised its estimates for the last two months of the year.

November’s figure was raised from 161,000 to 247,000 while December’s number underwent a smaller increase, changing from 155,000 to 196,000. These revisions represent a significant chunk of economic activity and offer support for the idea that the economy is finally beginning to strengthen in a substantive way.

If history is any indication, ongoing growth will drive up the price of traditional fuels as both companies and consumers look to use more energy. If the current uptick sends crude prices on an upward trajectory, producers will need to ensure their oil and gas wells are operating at maximum capacity in order to fully capitalize on the opportunity.

Implementing a hydraulic jet pump or an alternative artificial lift solution can help a company achieve high output from new or established wells. Firms that are interested in jet pump installation should contact an experienced provider of oil production equipment.