How the Oil Price Crash Will Impact Oklahoma

How the Oil Price Crash Will Impact Oklahoma

BARREL - FALLING LOWER THANIT EVER HAS BEFORE.

2WORKS FOR YOU'S KATIEKELEHER... TELLS US WHATTHIS COULD MEAN FOR US HEREIN OKLAHOMA.TOM SENG, DIRECTOR, SCHOOLOF ENERGY, UNIVERSITY OFTULSA "I mean this iscomparable to a huge stockmarket crash in terms of itsimpact on one industry." ANUNPRECEDENTED DAY FOR OIL.LOW DEMAND FOR MAY FUTURESCONTRACTSCAUSING THE PRICE TO FALL TONEGATIVE 37 DOLLARS AND 63CENTS PER BARREL.

TOM SENG,DIRECTOR OF THE UNIVERSITYOF TULSA SCHOOL OF ENERGY,SAYS CONCERNS OVER LOWPRICES HAVE BEEN BUILDINGFOR MONTHS AS CORONAVIRUSANDSTAY-AT-HOME ORDERS LOWERDEMAND.00:05:30:03-00:05:37:02 TOMSENG, DIRECTOR, SCHOOL OFENERGY, UNIVERSITY OF TULSA"We're going to lose jobsand companies are going togo out of business at $20 to$22 oil.

That's a fact."KKBRIDGE OIL COMPANIESAREN'T THE ONLY ONES THATWILL BE AFFECTED.

THIS WILLBE A HIT TO SERVICECOMPANIES THAT PROVIDETHINGS LIKE EQUIPMENT ANDFABRICATION.

As well as THESMALL OKLAHOMA TOWNS WHEREDRILLING OCCURS.00:06:50:06-00:06:58:13 TOMSENG, DIRECTOR, SCHOOL OFENERGY, UNIVERSITY OF TULSA"Those workers are fillingup the cafes and the hotelsand the bars and restaurantsand those kinds of things.And so they'll leave thetowns as well." ECONOMISTSWITH OKLAHOMA STATEUNIVERSITY PREDICT THE LOSSOF 10-THOUSAND ENERGY JOBS.JUNE FUTURES CONTRACTS AREALREADY SELLING IN THE 20DOLLAR RANGE.

BUT - THATPRICE IS NOT HGH ENOUGH.SENG SAYS AS SUMMER NEARSAND DEMAND STAYS LOW, OILCOMPANIES ARE GOING TO HAVETO MAKE SOME CHANGES.00:10:11:05-00:10:24:12 TOMSENG, DIRECTOR, SCHOOL OFENERGY, UNIVERSITY OF TULSA"It's horrendous, but wecan't do anything aboutit.

So, okay, let's look atJune.

June's in the 20s,let's start trying to findsome areas - The U.S. oiland gas companies are goingto have to cut production."KATIE KELEHER, 2 WORKS FORYOU.ECONOMISTS AT OKLAHOMA STATE