The oil bust is ending the boomtown party in America’s energy states.
After leading the nation’s comeback story during the recovery, many energy-focused states lost a lot of their momentum in 2014, according to a new report from the Commerce Department.
A barrel of oil was worth $100 in August, but fell to $54 by the end of last year due to a global glut in the oil supply. For many states such as South Dakota, Oklahoma and Wyoming, that’s bad news.
“The fall in oil and gas prices has had huge effects in states like that,” says Michael Canes, an distinguished fellow at the Logistics Management Institute in Virginia. He added: “People take a big hit, that’s just a sad fact of life.”