HOUSTON, TX - Oil is falling -- no not dropping from the sky -- but hitting the bottom of the barrel price wise. The price has dropped below $27 a barrel for the first time since 2003. It's so cheap any of us could go out and buy a barrel!! It may come as no surprise, according to local economist Adam Perdue with The Institute for Regional Forecasting, the Texas economy will be greatly affected.
"It's going to slow down the growth from what we would have expected had the oil prices stayed high."
In may mean lower prices at the pumps, but it also means job loss. The layoffs that Shell Oil began making last year will increase by a third to approximately 10,000 workers this year. This will cause a trickle-down to the average Joe.
Perdue says, "As engineers lose their jobs, oil roughnecks lose their jobs, then they have less money to spend in the local economy. Then you would expect to see job losses in retail, the grocery stores, barber shops, and other industries of that nature."
It's a question of supply and demand. Right now, the oil supply is high and we're waiting for the demand to catch up. In the meantime, fill 'er up, for next to nothing!