What would happen to Houston's economy if oil dropped to $20 a barrel? In a report released Friday by Goldman Sachs, analysts said that could happen by 2016.
It's a doom and gloom projection; however, Ed Hins, an energy economist at the University of Houston, says there is a big 'but' to that projection.
"Conceivably that's possible," explained Hins, "but it would be really unlikely to happen in this day and age. There are too many big financial players that have been buying up oil they would just start buying up the companies and shutting down production themselves."
According to Hins, 94-million barrels of oil are produced every day. Currently there is just too much supply, so shutting production down would cause prices to rebound.
"A $20 oil [barrel], this is not going to last very long. It would be back up to $40, $50, $60 easily within a year's time."
As far as how that price would impact Houston's economy, Hins said other parts of the country would be affected more....................
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