The good news and bad news as oil prices keep dropping
DENVER — While drivers continue to celebrate dropping gas prices, some investors see the drop in oil as a potential problem for oil companies across the United States.
The Dow Jones Industrial Average closed down 331 points Monday after oil closed below $50 a barrel for February delivery. The drop in oil could also spell trouble for energy companies that employ 111,000 people directly and indirectly in Colorado.
“Companies are going to have to evaluate what they’re ‘gonna do with this situation,” said Stan Dempsey, President of the Colorado Petroleum Association.
Economic experts also point to the drop in oil prices impacting retirement and investment portfolios for millions of Americans. The drop in oil though isn’t guaranteed to last forever and some believe the industry is well prepared to handle temporary drops.
“I haven’t heard of companies making dramatic changes in their personnel but certainly when you have your top line diminished I think everyone is nervous,” added Dempsey.
Right now the national regular unleaded average sits at: $2.26 a gallon. That’s down from $3.32 and $3.39 compared to the same time in 2013 and 2012. The average in Colorado is around $2.05 per gallon. It’s not too hard to find gas for under $2 a gallon around metro Denver.