Posted on 01/14/2015 10:26:56 AM PST by shepardspie33
The rapid decline in oil prices could have a significant negative impact on the Oklahoma economy. Taxes associated with production, sales taxes, corporate taxes, income taxes, employment, and housing markets can all be expected to suffer without a rebound in oil prices, which seems unlikely in the near future.
Oil continued to fall on Tuesday as prices neared 6 year lows before regaining some ground... Brent crude has fallen roughly 70% since June while West Texas Intermediate (U.S. crude) has fallen approximately 55% in the same time period.
To date the largest oil and natural gas companies in the state have largely been shielded by falling prices due to their price per barrel being locked in at higher prices due to contracts solidified prior to the recent decline. However, in an economy where 20% of jobs are tied to the oil and gas industry, Oklahoma’s economy is sure to take a hit unless prices rebound relatively soon...
With Saudi Arabia and OPEC, who export 60% of the world’s oil, refusing to cut production, prices will continue to fall with no definitive end in sight. Even if they begin to stabilize much of the damage has been done, and a significant uptick in oil prices cannot be expected anytime soon.
A 2013 study by the Council on Foreign Relations indicates that significant jobs losses in communities reliant on energy related jobs are to be expected when oil prices undergo rapid decline. The study suggest that the states most heavily affected will be Oklahoma, North Dakota, and Wyoming. In addition, history tells us that sharp declines in oil prices in areas that are heavily dependent upon energy sector jobs correlate with downward trends in the housing market.
(Excerpt) Read more at reddirtreport.com ...
Not looking good for Alaska, either.
Our new governor just released a statement that due to tax breaks and incentives given by the last administration (Parnel/Palin), the state of Alaska will earn approx -400 million dollars this year and have a bigger loss next year.
The 1987 stock market crash was preceded by a 50% plunge in oil prices. Just a thought.
Something I don’t really have a good explanation for (besides the obvious bribery)
How do the Saudis and their OPEC get away with openly saying they are a Cartel and price fixing?
Google price fixing and you’ll find numerous entries where charges and fines were levied against Toyota, Motorola, Nokia, etc eta. Can anyone imagine if all the computer manufacturers formed a cartel and fixed prices?
How do the sand monkeys get away with this?
Ita a paradox because this allows me to pay off my gas bills once and for all. At the pump I am wondering if its 1998? LOL
What authority would bring a conspiracy charge ?
What court would hear the case ?
What??? History repeat itself???
They do it to foreign entities all the time. And there should be trade and customs issues. I guarantee if Lexus and Mercedes openly entered into an agreement to set common prices and production goals on sedans over 3.5 liters, the US government would swing into action.
The US government sues banks and businesses worldwide. The EU routinely sues Microsoft. Last I heard Samsung was Korean.
But somehow, the Saudis and OPEC do something that would be criminal and prosecuted if it were in any other business.
At a bare minimum we shouldn’t sell them anything, and should deny them access to US markets, US visas, US banking, etc etc.
It’s the difference between a company versus a country. There is no outside legal authority for a country, in terms of a cartel.
BUT, right now the Saudis are not price fixing ... they’re letting the prices go where they will.
Texas has already laid off many oil field workers.
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