The atmosphere in some senses was not optimistic nor hopeful at the recent Mid-Continent Digital Oilfield Conference held in Tulsa by the organization called Sustaining Oklahoma’s Energy Resources. Just how bad was it? Some conferees were walking around handing out job resumes. Despite the dark mood among many, sponsors said attendance at the conference still exceeded their expectations.
Then Russell Evans, executive director of the Oklahoma City University Steven C. Agee Economic Research and Policy Institute added to the gloom, saying 2016’s oil outlook is “bleak.”
“It’s not a pretty picture,” he told those on hand for Thursday’s keynote address.
While he didn’t think there would be a nationwide recession caused by the low oil and gas prices, Oklahoma’s feeling the impact now.
“We have no protection from robust oil and gas activity across the state,” said Evans. “If we move into the recession on the heels of $30 per barrel oil, Oklahoma would be hit immediately and mercilessly.”
Some believe prices will eventually reach the upper $30 to $40 range by the end of the year. Evans did not sound that hopeful and said any growth of the economy in 2017 will depend largely on what happens in the second half of this year.
While Oklahoma City and Tulsa economies seem to be doing fairly well because of a diverse economy, elsewhere is another matter.
“The rest of the state is really bearing the brunt of this. Rural Oklahoma is completely exposed to the weakness in the industry,” said Dr. Evans.
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