Experts Say Oil Price Recovery Unlikely until 2016

On the edge of Ft. Bend County you will find a few Pump Jacks pulling oil - and quite a few that simply are not.

It is a basic illustration of a turbulent industry currently contending with more petroleum than people can currently use.

"There's still too much oil relative to demand," said Bob Tippee, Editor of Oil and Gas Journal.

Tippee says while low prices persuaded American companies to slam the brakes on production here, other big petroleum players, particularly OPEC, continue to pump at high pace perpetuating a global glut.

"It's going to be a longer more difficult period than we had hoped for at the beginning of the year," said Tippee.

Further suppressing the price of crude diminishing appetite for oil from a principal customer.

"The underlying thing is that China's growth is not as fast as expected," said Adam Perdue, an economist at the University of Houston's Bauer College of Business.

On the upside reasonable prices at the pump will continue along with prosperity and growth in the area petrochemicals, a major benefactor of cheap fossil fuel.

"We are now experiencing a manufacturing boom on the ship channel and the south side down to Freeport and Lake Jackson. That is adding a plus to the Houston economy to kind of balance out the harm that we are seeing with the fall in oil prices," said Perdue.

Both Perdue and Tippee say it will likely be well into 2016 before oil prices have a chance to fully recover.