Midland economic contraction result of oil, gas prices
(Economy : Midland) 6/1/2009

The ripples in the Midland and Odessa economies caused by last fall's plunge in crude oil and natural gas prices have grown to waves as they move through the region's general economy.

The Midland-Odessa Regional Economic Index, prepared by Amarillo economist Karr Ingham, showed the biggest month-to-month drop in its history - 2.2 points - and remains barely positive, up 1.1 percent from April 2008. Ingham predicted the index could turn negative next month.

Among the last dominoes to fall has been retail activity, which fell about 1 percent in April compared to last April, though they are up 7.4 percent for the year compared to the first four months of 2008. Area employment, both in the oil and gas industry and overall, remains positive, and could be the last domino to fall, with Ingham predicting that employment is sure to decline.

Source: Karr Ingham