New OSU Report Shows Oklahoma Oil And Gas Sector Could Take 2 Years To Rebuild

A new report from an economists at Oklahoma State University say the oil collapse and the pandemic could cost Oklahoma 10,000 jobs, just in the energy sector.

Experts are saying it could take around two years to rebuild the oil and gas industry. Thats why the state is crunching numbers and is ready to tap into its billion dollar reserve.

Oil prices climbed back above a dollar for a few hours Tuesday morning, but have now dropped back in the negatives.

Industry experts believe if oil stays at current prices, the state will also see jobs like the mining sector here in Oklahoma bottom out around the start of 2021.

But other experts say because of contracts, its not all bad news.

“You're in a situation where the market is oversupplied with oil and that is what is driving the price down,” said Chad Warmington, President and CEO of the State Chamber of Oklahoma. “Today is a unique day in a sense you have a contract expiration tomorrow but if you look at the June contracts, the price in the $20 range is where people expected it to be on Friday.”

Warmington also said Oklahoma probably wont have the rig county or prices that we have seen recently, over the next two years. 

However he is hopeful that the industry will bounce back.