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Cheap oil is killing Oklahoma’s economy
Red Dirt Report ^ | January 23, 2016 | Brian Woodward

Posted on 01/23/2016 12:59:38 PM PST by shepardspie33

OKLAHOMA CITY -- As oil prices continue to slide with no recovery in sight, the Oklahoma economy has begun to contract. Oil prices have fallen to 12 year lows, and the industry is undergoing its largest downturn since the 1990's. Meanwhile, investment bank forecasts continue to become more bearish.

According to the latest data released by the Bureau of Economic Analysis, gross domestic product in Oklahoma declined 2.4 percent in the second quarter, ranking last among U.S. states.

Prompted by depressed oil prices, these numbers were a stark reversal of the 6.5 percentage growth that occurred during the first quarter. In addition, gross receipts to the treasury were down 3 percent for fiscal year 2015, caused in large part by the significant decline in revenue collected from the oil and gas gross production tax. Collection of these taxes fell $409.56 million or 46.3 percent from the previous year.

Oil forecasts continue to decline, with investment banks slashing their previous prognostications.

The median price per barrel estimate is just over $50 for the fourth quarter of 2016. This spells disaster throughout Wall Street and poses a significant problem for the Oklahoma economy.

Even if prices rise to $50 a barrel, many shale producers are not able to break-even at such price points.

While to many, lower gas prices seem to be beneficial to the middle and lower classes, seemingly only negatively affecting the top brass of oil companies, the impact of low oil prices has a widespread effect on the Oklahoma economy that reaches across socioeconomic lines.

Declining oil prices harm more than just those employed directly in the oil sector. Oklahoma’s two largest cities, Oklahoma City and Tulsa, are both ranked in the top five nationwide in jobs tied to oil related industries...

(Excerpt) Read more at reddirtreport.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: Oklahoma
KEYWORDS: economy; education; jobs; oil
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To: usconservative

South side of Indy broke into the 1.20s last night.
Been on a 2 or 3 cent a day downslope for couple weeks.


21 posted on 01/23/2016 1:21:12 PM PST by nascarnation
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To: nascarnation

We’re just now breaking below $1.90 here, best I’ve seen has been $1.85. NC has a fairly high road tax on gas sales.


22 posted on 01/23/2016 1:23:26 PM PST by RegulatorCountry
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To: shepardspie33

What the frack did they think would happen?


23 posted on 01/23/2016 1:24:30 PM PST by OrangeHoof (Obama - the AIDS virus for the American body politic.)
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To: nascarnation

At $1.29 per gallon, my only regret is that I can only drive one car at a time.

**************

My regret is that I do not have a huge storage tank.


24 posted on 01/23/2016 1:36:10 PM PST by Graybeard58 (Bill and Hillary Clinton are the penicillin-resistant syphilis of our political system.)
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To: dfwgator

Well, it is cheaper than milk right now.


25 posted on 01/23/2016 1:43:17 PM PST by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: shepardspie33

Welcome to the mid-1980’s, fellow Okies! Yeah, it sucks now. It is just like the mid-80’s except; there is no Reagan and instead of Disco, we’ve got Rap. Rap is the only thing that has ever made me even kinda miss Disco .... but I digress.

Anyway, we will live. It will be rough, but we will live.

One thing is for certain, though. It won’t be boring. In Oklahoma, there are two times when a guy can make a fortune: Oil Booms and Oil Busts.

The oil is still there and, temporarily, oil leases are gonna be really cheap.


26 posted on 01/23/2016 1:49:18 PM PST by OkiMusashi (Beware the fury of a patient man. --- John Dryden)
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To: shepardspie33

Well expensive oil was killing my economy...They didn’t have much sympathy for us when we were paying $4.50 for a gallon of gas. I was buying $600 worth of gas a month for years, now it’s down to $120...


27 posted on 01/23/2016 2:18:38 PM PST by Smittie (Just like an alien, I'm a stranger in a strange land)
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To: OkiMusashi

You have that right!

This upturn and downturn of the Oklahoma oil economy is as old as Oklahoma. Oklahomans are used to oil booms and busts, and old school Oklahomans know this and plan for it accordingly.

The next shoe to drop in Oklahoma will be a real estate price drop.


28 posted on 01/23/2016 3:04:06 PM PST by judicial meanz ("Don't fire unless fired upon, but if they mean to have a war, let it begin here" -- Captain John Pa)
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To: IC Ken

And they are not just any old job. They are great paying jobs that people can earn enough from to stimulate the economy, not just buy bread and beans.


29 posted on 01/23/2016 3:28:14 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
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To: Slyfox

Gee, Oklahoma, didn’t you put something aside for a rainy day?


30 posted on 01/23/2016 3:34:05 PM PST by TruthInThoughtWordAndDeed (Yahuah Yahusha)
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To: IC Ken
You left out us Cajuns in Louisiana. It reminds me of the time when we had that other idiot in the White House, Jimmy Carter.
31 posted on 01/23/2016 3:42:05 PM PST by Do the math (Doug)
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To: judicial meanz
The article stated that there was a 90+% increase in real estate foreclosures.
32 posted on 01/23/2016 3:58:53 PM PST by Dust in the Wind (U S Troops Rock)
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To: central_va
I think I will just leave my car running 24/7 just to do my part.

You'll be helping people on the East Coast as well. They could use a little global warming about now.

33 posted on 01/23/2016 4:26:42 PM PST by tpmintx (Gun free zones are hunting preserves for unarmed people.)
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To: shepardspie33
I'm happy about this because my sil had relatives who somehow got a bunch of land and with oil and its been paying her now for at least 30 yrs and she is always throwing it in my face, in an informative way just so I know it.....no matter what we talk about by phone she seems to be able to "have to tell me something" and I say to myself "here it comes"...her land...the oil...new rigs...

and then she goes on about how she'll be buying a brand new car very soon....

so do I care if the oil market drops?....I celebrate it....

34 posted on 01/23/2016 7:24:44 PM PST by cherry
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To: cherry

Moral of the story - shut yer mouth and don’t spike the football.


35 posted on 01/23/2016 7:30:26 PM PST by farming pharmer ('Your work will warm you' - overheard in a Soviet gulag...)
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