TX Economy OK at Current Prices | Russell T. Rudy Energy LLC
BBVA Compass Bank sees the Texas economy as relatively unaffected at current crude prices according to a recent article in “Rigzone”. The bank attributes this resilience to the diversification of the Texas economy, especially in urban areas such as Houston. While the Bayou City is still the energy capital of the world, it has become increasingly reliant on other industries.
About one third of the Texas economy is composed of the energy industry, so any prolonged downturn, especially below $70 per barrel, would be a major setback. The Central and Western parts of the state would be the first areas to feel the downturn as they are the most energy dependent.
For many companies their breakeven point is around $70 per barrel. However, at current levels the Texas economy is not in imminent danger.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/136016/BBVA .
