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Just before the start of the 2015 Texas Legislature which is currently in session industry experts
and elected officials speculated on how the legislative agenda would be shaped as a result of
falling crude oil prices. In late December and early January West Texas Intermediate prices were
flip-flopping around $60 per barrel. Since then, prices have fallen even further as a result of
several factors.
One of the key factors that occurred was when OPEC, along with Russia, decided against curbing
production to stabilize prices. Those incidents combined with increases in production over the
past few years placed a lot of oil in the world market and reserves. These factors perpetuated
weakened demand and lowered price. Industry analysts believed break even to be in the $55-$60
per barrel range while some operators are profitable at just $40 per barrel. Either way, given the
unexpected turn of events, it is safe to say we can only speculate as to how thin