There’s been lots of chatter about the decline of oil prices, a subject close to our hearts here in the great state of Texas.
U.S. oil prices fell below $50 a barrel for the first time in six years earlier today, sending the Dow Jones Industrial Average down some 329 points, of 1.9 percent.
In fact, The Wall Street Journal drilled down on the very topic of the impact this petro pricing downturn might have on Texas.
The last time this happened on a major scale, circa 1986, it had a domino effect on the Texas economy.
This time, writes the Journal, is likely different:
Texas now has "…a more cautious banking sector, a tax and regulatory environment favorable to business, and a state economy less dependent on energy and other resources."
Former Southwest Airlines chairman Herb Kelleher was cited as saying "Texas has become a well-rounded state" and "People did remember not to overextend themselves."
Of course, tell all that to the likes of Halliburton, Schlumberger Ltd., Baker Hughes, and other oil-field services providers, never mind the major petroleum extracting companies like Exxon Mobile, Phillips 66 and others with a significant presence in Texas (especially in Houston).
Me, I don’t think there’s a 1986 in the offing, but Texas could still be in for a rough time in the oil patch…at least for a spell.
You can read the full Journal piece here.
The post There Goes The Oil Neighborhood appeared first on Turbo Todd.