January 9, 2015

As Oil Prices Fall, Energy States Suffer

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Drilling north of Okeene, Oklahoma before sunrise.

Marvin Bredel / Flickr/Creative Commons

Drilling north of Okeene, Oklahoma before sunrise.

A new report by financial site money-rates.com, ranks states according to which will be hardest hit by falling oil prices: North Dakota, Wyoming, Alaska, Oklahoma, New Mexico, and Colorado, in that order.

The ranking was based on rates of oil production, oil consumption and the percentage of oil workers employed in each state’s workforce.  The study indicated that North Dakota would be the hardest hit due to the huge effect the oil boom has had on the its economy over the past few years. For example, the state has the lowest employment rate in the country. Wyoming comes in second.  Not because the state is a top oil producer but because, according to the American Petroleum Institute, oil and gas jobs make up a greater percentage of the job market than in any other state. 

While consumers across the country are enjoying filling up their tanks for less, this report indicates that falling oil prices could be disastrous for oil workers and state budget in energy producing regions.