Oil Price Not Necessarily Tied to Project Cancellations, Layoffs
SUGAR LAND--December 29, 2014--Researched by Industrial Info Resources (Sugar Land, Texas)--The benchmark prices for crude oil have fallen to their lowest level in years. With West Texas Intermediate (WTI) hovering around $55, scarily close to the breakeven price for that area, both industry and the general public seem worried, despite drastic price cuts at the gas pump. The price drop has become the scapegoat for any happenings at oil and gas companies in the U.S., being blamed for canceled projects, reduced production and corporate lay-offs. While the correlation in timing of the price drop with these unfortunate events is suggestive, to quote a statistics professor, "correlation does not equal causation." Within this article: Bakken-to-Cushing pipeline by Product Partners' (NYSE:EPD).
