Drop in gas prices and less drivers on the road worries industry

Local News

Federal government assisting oil and gas industry during Corona crisis

SAN ANGELO, TX – Many consumers are pleased with the drop of gas prices at the pump. However, between that price drop and the reduced numbers of people buying fuel, those who work in the oil and gas industry have some mounting concerns. Economic experts in the San Angelo area, who work frequently with those manning all levels of the West Texas oil and gas industry say that the federal government is doing remarkably well to help balance out the rising concerns. Though it is still understandable why a low price, low demand environment may make those who make a living from oil and gas feel anxious.

“We have enormous pressure from both the supply and the demand side of the market,” explained Michael Looney with the San Angelo Chamber of Commerce. “So now we have a, an increase in supply, which is being impacted by the duel between Russia and Saudi Arabia, but we also have a decrease in demand, and that’s because so many few people are driving, but you have traveled, that’s also been curtailed for aircraft and, and for it for train engines with diesel.”

With people adhering to distancing and health guidelines, and the government working to help struggling businesses, it is hoped those working in the energy sector are not too deeply impacted when the current crisis ends.

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