The Impact Of Decrease In Oil Prices In The U.S.

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U.S. is considered one of the most developed countries in the world and it is also a country which provides 100% employment. Of course there are times the recession affects the country’s economic condition.

One of the news blogs mentioned:

“Washington County, Oklahoma, had the highest concentration of employment in the oil and gas extraction industry, while Upton County in the Permian Basin in West Texas had the second highest concentration.”

With some of the fastest growing companies providing employment are creating an impact on the country’s and world’s economic condition.

Oil and gas companies are one of the fastest and the most affected companies due to recession or any serious economic conditions. Though these companies hire the maximum manpower for various oil and rig jobs, they are the ones that also equally get affected with recession or even issues like fall in oil prices.

At one point the consumer is happy with the considerable decrease in oil prices, the other way, the oil and gas companies gets affected on their employment. There has been a huge hit on the oil and gas employment with the decrease in the oil prices.

In one of the news articles, Keith Phillips, a senior economist and research officer with the Fed mentioned:

“The sharp decline in oil prices has created much uncertainty in our outlook for state job growth this year, but we’re viewing it as a headwind for the Texas economy,” said Keith Phillips, a senior economist and research officer with the Fed. “However, Texas has a diversified economy, and while the drop in oil prices slows job growth, it won’t send the state into a recession like it did in the 1980s.”

Thus, though there has been a huge advantage to the consumer with the decrease in oil prices, there are quite a few oil companies that have been affected due to this and they are forced to lay off workers and cut down on various company expenses. But this is not going to last for forever, since to a large extent the U.S. economic condition depends on the oil and gas companies.