Oil field services and machinery companies reported that good sales activity continued, with firm prices for their products. Weakness in U.S. drilling was offset by improved prospects overseas, especially in Latin America, and good levels of activity in Canada and the Gulf of Mexico. Gasoline prices plummeted on news of several counties pulling out of the reformulated gasoline program, and fuel oil sales were hurt by the warm winter. In contrast to refining margins, retail marketing margins were wide and very profitable. No significant spot shortages were reported as the reformulated gasoline program went into effect in early 1995.
Petrochemicals remain in short supply, prices continue to rise, and profits are very strong.
For the first time since 1991, Houston managed to lease more office space than was vacated during the year, but rents remain flat. For a copy of this publication, write to Bill Gilmer, Houston Branch, Federal Reserve Bank of Dallas, P.O. Box 2578, Houston, Texas 77252. This publication is available on the Internet. The views expressed are those of the authors and do not necessarily reflect the positions of the Federal Reserve Bank of Dallas or the Federal Reserve System. PDF format requires Adobe Acrobat for viewing. .