Good news for one person can be another’s worst headache. Take the recent slide in oil prices, for instance. While most drivers are certainly happy about the falling prices, oil companies and their workers certainly aren’t.
Oil prices are projected to remain relatively low through 2017, according to the Energy Information Administration (EIA). According to its estimates, price per barrel will average around $40 in 2016 and $50 for 2017. Currently supply outpaces demand, according to EIA, which explains the depressed oil prices.
Moreover, when a commodity’s price drops, the industry behind it naturally shrinks, as is the case in Oklahoma. In February, Devon Energy laid off 700 Oklahoma-based workers due to “the current commodity price environment” and to control expenses during the downturn. American Energy Partners confirmed that not only is it laying off employees, it will be shutting down after a mere three years of operation.