DALLAS (1080 KRLD) - Oil is trading at historic lows due to lack of demand.
Todd Staples, President of the Texas oil and Gas Association says the virus is having a terrible impact on the state's energy community. "You have this incredible amount of supply coupled with a depressed demand, and it is just moving the price point to where it is absolutely uneconomical to continue the upstream production."He says businesses up and down the supply chain are being impacted. Staples notes the state's budget was written with oil being valued at around $55 a barrel. "This coronavirus coupled with the excess supply is putting incredible pressure on our state's economy. It's having an extremely negative impact on our oil and gas community."Staples says the industry is resilient, but this situation is unprecedented.This will lead to job losses.
Houston based Halliburton is furloughing 3,500 workers in Houston for the next two months. Employees will have to get used a new schedule where they're on for a week, then off for a week. Those workers will not be paid for the weeks that they're not working, too. The workers will maintain their benefits, during the down time.