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 ...
South side of Indy broke into the 1.20s last night.
Been on a 2 or 3 cent a day downslope for couple weeks.
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.
What the frack did they think would happen?
At $1.29 per gallon, my only regret is that I can only drive one car at a time.
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My regret is that I do not have a huge storage tank.
Well, it is cheaper than milk right now.
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.
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...
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.
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.
Gee, Oklahoma, didn’t you put something aside for a rainy day?
You'll be helping people on the East Coast as well. They could use a little global warming about now.
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....
Moral of the story - shut yer mouth and don’t spike the football.
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