The Business Times

America's oil states show early signs of slowdown

Many companies have announced layoffs and are cutting spending plans

Published Mon, Dec 15, 2014 · 09:50 PM

Los Angeles

AFTER leading the US economic recovery out of recession, some of the nation's top oil states are showing early signs of a slowdown as a result of the plunge in crude prices.

In Houston, Texas, the first oil industry layoffs have been announced, with realtors there predicting a sharp decline, up to 12 per cent, in home sales next year.

Alaska's 2015 fiscal year budget revenue forecast will have to be lowered by almost US$2 billion, according to Fitch Ratings, because of the sharp drop in the state's forecast crude prices. That will widen Alaska's budget gap to almost US$3.4 billion, Fitch said in a Dec 11 report.

States such as Texas, North Dakota, Alaska, Oklahoma and New Mexico are all likely to feel strains next year, Well…

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