La. Oil & Gas Industry Uneasy As Drivers Enjoying Low Gas Prices
What’s good for one group of people right now has another group very nervous.
Prices at the pump are falling, which is leaving drivers’ wallets a little heavier after they fill up. But, on the other side, falling oil prices are having a negative impact on Louisiana’s oil and gas industry.
Potential layoffs in the industry, as well as companies pulling back and reassessing their budgets has Louisiana Oil and Gas Association President Don Briggs concerned as gas prices continue to fall.
"Because you don't spend $80 a barrel if you're getting $70 a barrel,” explains Briggs to Louisiana Radio Network. “So it's definitely having an impact and companies are looking very hard at their budgets next year."
He further explains how it affects the state.
"For every dollar drop in the barrel of oil on the average price costs the state $12 million. The state receives severance tax and royalties and all kinds of revenue from the industry."
But Briggs maintains a positive attitude that this will only be temporary.
"One thing you can count on, though, that will change. Everything that goes down, goes back up. We don't want to see anything like this for a long period of time."