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In Western OK, Falling Oil Prices Affect All Industries

Natalie Maynor
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Flickr Creative Commons

Towns in western Oklahoma rely on two key factors to keep their economies running smoothly: agriculture and oil. When oil and gas profits plummet, communities suffer. Those in the oil industry are most directly affected, obviously. But the downturn can affect all industries. Equities.com recently profiled the town of Laverne in northwest Oklahoma. A Laverne oil pumping service called General Inc. recently laid off 15 percent of its workers, with more layoffs possible.

But low oil and gas prices are also disrupting farming and ranching in the area. Crop prices often fluctuate in tandem with oil prices. One third-generation Beaver County farmer said, “We sure didn't know it would affect some of us this much."

The downturn in oil prices has also taken a toll on small businesses and the housing market in Laverne. More of the town's roughly 1,400 residents are losing jobs, spending less money and in some cases leaving town.