texas

Crude Oil Price Drop Will Affect Texas Economy: Expert

The lower price of crude oil will directly impact the Texas Oil Industry, according to one expert.

TCU Energy Institute Director Dr. Ken Morgan said it directly impacts Texas schools, roads and emergency services.

"A lot of people are losing jobs," he said. "Good paying jobs. Jobs that were letting them then spend money into the economy."

AAA said in 2015 that Americans saved more than $115 billion at the pump, which is about $550 per licensed driver.

"When you think about saving $550 on gasoline in a year, that’s a lot of money for a lot of folks," AAA spokesman Doug Shupe said. "They can really use that money for many other things that they’ve been wanting to use it for."

Morgan said in the long run, lower gas prices will mean more layoffs for people in Texas who work in the oil industry. He said the ideal gallon of gas, economically speaking, would cost about $2.

"People don’t want to hear this, but we would need somewhere in the $50 range for a barrel of oil," he said.

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