Will Texas Slip Into A Deep Recession Because Of Oil Prices?

[PGreen]

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth. But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

And it will be hard enough for Texas to find another source of economic activity to keep the state afloat.

JPMorgan to Texas Brace for a recession - Dec. 18 2014

 

[deltex1]

I sense no concern here..we can always start a war with Mexivo.

 

[Mad_Cabbie]

Wow! We need to hike up the price of gas - Obama sticking it to us again!!!!

 

[Statistikhengst]

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth. But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

And it will be hard enough for Texas to find another source of economic activity to keep the state afloat.

JPMorgan to Texas Brace for a recession - Dec. 18 2014

Oh, so, you are AGAINST the free and unfettered Market. Ok, got it. You are a communist. Ok.

 

[JoeMoma]

Give it six months; the price of oil and gas will be up again.

 

[HereWeGoAgain]

Not worried. It'll go back up soon enough.

 

[kaz]

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth. But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

And it will be hard enough for Texas to find another source of economic activity to keep the state afloat.

JPMorgan to Texas Brace for a recession - Dec. 18 2014

I don't get your logic. Granted shareholders of oil companies will take a hit, but how is more gas and oil being processed in the US going to harm the economy of the State that does the largest share of processing it exactly?

 

[Moonglow]

Texass is full of shit,,try a peat bog industry

 

[HereWeGoAgain]

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth. But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

And it will be hard enough for Texas to find another source of economic activity to keep the state afloat.

JPMorgan to Texas Brace for a recession - Dec. 18 2014

I don't get your logic. Granted shareholders of oil companies will take a hit, but how is more gas and oil being processed in the US going to harm the economy of the State that does the largest share of processing it exactly?

We stop drilling when the price gets to low.

 

[rightwinger]

Obama is cutting the oil prices just to get even with Texas

Take THAT Rick Perry! You don't seem like such an economic genius anymore

 

[kaz]

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth. But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

And it will be hard enough for Texas to find another source of economic activity to keep the state afloat.

JPMorgan to Texas Brace for a recession - Dec. 18 2014

I don't get your logic. Granted shareholders of oil companies will take a hit, but how is more gas and oil being processed in the US going to harm the economy of the State that does the largest share of processing it exactly?

We stop drilling when the price gets to low.

The price gets too low when there is too much oil on the market. That isn't a magic random event. If there is too much oil on the market, and we stop drilling, what is going to keep prices up? You know, supply and demand?

Granted production will fluctuate and the amount of drilling will fluctuate, but the contention is Texas could go into a "deep recession." Production would still be higher than it is now. If production goes up 50% then drops 10%, it's still higher than it is now and Texas is not in a recession, so how would higher than now but lower than the peak production do it? So you didn't address the question, how can more production lead to a worse economy?

 

[Moonglow]

Teaxass will just have to lower the min. wage...

 

[kaz]

Obama is cutting the oil prices just to get even with Texas

Take THAT Rick Perry! You don't seem like such an economic genius anymore

What has Obama done to cut oil prices? He has only worked to increase them. That shows again his flagrant incompetence. Incompetence, the only thing he's good at. I hope he keeps working to increase oil prices, even lower would be nice.

 

[rightwinger]

Obama is cutting the oil prices just to get even with Texas

Take THAT Rick Perry! You don't seem like such an economic genius anymore

What has Obama done to cut oil prices? He has only worked to increase them. That shows again his flagrant incompetence. Incompetence, the only thing he's good at. I hope he keeps working to increase oil prices, even lower would be nice.

What has he done?

Why Obama is the greatest energy President in 50 years. His energy policies have encouraged energy creation and diminished our Republican sponsored dependence of foreign oil

I bought some Obamagas yesterday at $2.03 a gallon

 

[NYcarbineer]

Not worried. It'll go back up soon enough.

Obama is cutting the oil prices just to get even with Texas

Take THAT Rick Perry! You don't seem like such an economic genius anymore

What has Obama done to cut oil prices? He has only worked to increase them. That shows again his flagrant incompetence. Incompetence, the only thing he's good at. I hope he keeps working to increase oil prices, even lower would be nice.

You lie.

 

[BlindBoo]

Those who work for producers with large acreage in the Bakken shale in North Dakota are saying West Texas Intermediate (WTI) crude needs to stay above $60 a barrel for their companies to stay in the black. Those who work for producers with large acreage in the Eagleford shale play in south Texas say their companies can stay above water with oil as low as $45 to $50 a barrel.

Oil price drops Don t panic really - Fortune

 

[HereWeGoAgain]

The shale oil boom has been a blessing to Texas, making the state an economic standout during the past few years of ho-hum U.S. growth. But oil's dramatic plunge below $55 a barrel is scaring the shale industry. Since some wells are unprofitable at lower prices, shale companies will be forced to dial back capital spending and cut jobs.

And it will be hard enough for Texas to find another source of economic activity to keep the state afloat.

JPMorgan to Texas Brace for a recession - Dec. 18 2014

I don't get your logic. Granted shareholders of oil companies will take a hit, but how is more gas and oil being processed in the US going to harm the economy of the State that does the largest share of processing it exactly?

We stop drilling when the price gets to low.

The price gets too low when there is too much oil on the market. That isn't a magic random event. If there is too much oil on the market, and we stop drilling, what is going to keep prices up? You know, supply and demand?

Granted production will fluctuate and the amount of drilling will fluctuate, but the contention is Texas could go into a "deep recession." Production would still be higher than it is now. If production goes up 50% then drops 10%, it's still higher than it is now and Texas is not in a recession, so how would higher than now but lower than the peak production do it? So you didn't address the question, how can more production lead to a worse economy?

When they stop drilling the rest of the support industries take a beating.
Trucking,machine shops,tool sales...etc.
There wont be a Texas recession,but it does hurt our economy somewhat.

 

[kaz]

Teaxass will just have to lower the min. wage...

That would be good, we should do that everywhere. Or better yet, eliminate it. The idea of government preventing the neediest workers from getting jobs is just amoral.

 

[kaz]

Those who work for producers with large acreage in the Bakken shale in North Dakota are saying West Texas Intermediate (WTI) crude needs to stay above $60 a barrel for their companies to stay in the black. Those who work for producers with large acreage in the Eagleford shale play in south Texas say their companies can stay above water with oil as low as $45 to $50 a barrel.

Oil price drops Don t panic really - Fortune

Based on today's processes. Companies are incredibly resilient and creative when circumstances change.

 

[Moonglow]

Teaxass will just have to lower the min. wage...

That would be good, we should do that everywhere. Or better yet, eliminate it. The idea of government preventing the neediest workers from getting jobs is just amoral.

So is overpaid CEO's.......