Can Prolonged Low Oil Prices Derail the Local Oil Companies in Texas?

When oil prices dropped last year, everyone was surprised and somewhat relieved. And even though some economists were not too happy about the drop, none of them were too concerned about prices remaining low for too long, until now. To many economists, the drastic reduction in price is only going to create a short impact that can be buffered by the strength of other industries, such as tourism and healthcare. Impact on Small Oil Production Companies If you were to take a look at some of the local oil producing communities in Texas, you might start to notice a little tension in the air. Many small time oil producers are concerned about the potential negative effects on their businesses. To minimize the impact, many of those businesses have started to scale back their operations. Now those businesses are starting to lose revenue. Some small businesses are not going to be able to ride out the storm without going into debt. And too much debt means the end of business. For small crude oil p
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