Texas Oil Industry Taking A Beating From Coronavirus

(Austin, TX) — The Texas oil industry is suffering from slashed demand brought on by the coronavirus outbreak.

Todd Staples, president of the Texas Oil and Gas Association, says the lower demand has led to a glut in supply. Staples says the resulting plummet in prices has made it “absolutely uneconomical” for much oilfield activity to continue.

In addition to job losses, Staples points out that the state budget was based on an oil price of about $55 a barrel. West Texas Intermediate crude is selling for less than half that amount lately.