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by Chaparral
Mon Mar 09, 2020 10:04 pm
Forum: Off-Topic
Topic: Saudi starts an oil price war, OPEC in shambles
Replies: 13
Views: 4142

Re: Saudi starts an oil price war, OPEC in shambles

Paladin wrote: Mon Mar 09, 2020 7:26 am OPEC in shambles is a good thing. OPEC is a cartel which artificially restricts supply. Not good for the drilling industry, but low energy prices are generally good for the overall us economy.
Loss of oil royalties from state lands as well as a decrease in sales tax and other tax revenues will lead to a state budget shortfall. State unemployment will spike, and retail and real estate revenues will take a hit. Not necessarily good for the Texas economy.

Your description of OPEC is accurate, but an interesting historical note is that OPEC was modeled after the Texas Railroad Commission, which limited Texas oil production to support oil prices for much of the early and mid 20th century.
by Chaparral
Sun Mar 08, 2020 7:18 pm
Forum: Off-Topic
Topic: Saudi starts an oil price war, OPEC in shambles
Replies: 13
Views: 4142

Re: Saudi starts an oil price war, OPEC in shambles

This will not be good for Texas. Oil price in free fall, also driving the stock markets down.

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