S&P: Oil-dependent US states sliding into recession

According to the latest report published by Standard & Poor’s (S&P) on Wednesday, crude-producing US states have entered into recession, in response oil price declines witnessed in recent years.

The report came as President Trump rolled back decisions by the previous administration to block the Keystone XL and Dakota Access pipelines.

Key Quotes:

“The sharp pullback in exploration and production during the past 18 months has inflicted considerable damage on the economies of the oil-producing states.” 

“North Dakota’s economy has suffered the largest declines, going from having the fastest-growing economy in the US in 2014 to the state with the most pronounced contraction in 2015 and (likely) 2016.”

“It’s important to look ahead for downturn and some of these states did the opposite.”