Crude glut cost to O&G workers

HOUSTON - The sudden eruption in global oil markets may claim smaller energy companies, workers and governments whose budgets are fastened to the price of crude. It may take months to assess, but the impact on the U.S. economy is bound to be considerable, especially in Louisiana, Texas and states where oil drives much of the job market. With the coronavirus outbreak slowing trade, transportation, and other energy-based economic activities, demand may remain anemic. Even if Russia and Saudi Arabia resolve their differences, which led to the Saudis slashing oil prices after Russia refused to join in production cuts, an oil surplus likely will keep prices low for years. Many smaller American oil companies may face bankruptcy if the price pressure goes more than several weeks, while larger companies will be challenged to protect dividend. Thousands of oil workers are about to receive pink slips. (Source: NY Times 03/10/20) Gulf Coast Note: About 48,000 individuals worked in the oil and gas sector across Louisiana in December, down from 56,000 in December 2018. O&G industry employments' most recent peak in Louisiana was in December 2012, when there were more than 93,000 workers across the state. https://www.nytimes.com/2020/03/09/business/energy-environment/saudi-oil-price-impact.html?te=1&nl=morning-briefing&emc=edit_NN_p_20200310&section=topNews&campaign_id=9&instance_id=16619&segment_id=22045&user_id=069c0c79e41b9effe3db22ae17a5e131&regi_id=92576814tion=topNews