HOUSTON, TX – Gas prices hit a 6-year low, and folks are being laid off all around town… what’s going on?
“Overall they’ve been going down because we have an oversupply of gasoline,” explained Suzanne Edwards, energy reporter at Houston Business Journal. “A lot of the layoffs are happening in upstream, they first started in oil field services companies. These are the exploration and production companies, and independents. But actually in downstream, refineries for example… they can’t get enough talent.”
Now, if you only care about your car and how much it costs to fill the tank, then smile because it looks like this trend is going to continue for a while.
“I think, nationally, consumers are probably pretty happy,” she said. “Here where we’re quite tied to the oil patch you’re hearing a little more screaming.”
As a result of these developments, pressure is mounting on the U.S. government to allow oil exports that could help pump the prices up a little bit.
“It seems that lobbyists for the oil industry and business leaders themselves are kind of capitalizing on the moment,” Edwards expressed.
And there’s more because for the first time, the Environmental Protection Agency has proposed federal rules to cut methane emissions from oil and gas drilling by 40% to 45% over the next decade.
“In my opinion, just the general onus to be cleaner in drilling operations actually has opened up some opportunities for oil field equipment providers”, the analyst concluded.
Still confused? Don’t worry, hit the road and turn the music on… that will help you clear your mind. With these prices, you can afford to drive on, my friend.