Fed's Kaplan Expects 'a Number of Failures' in the Oil Industry

The video discusses the challenges faced by the oil industry, particularly in Texas, due to oversupply and low prices. It highlights the economic impact on the region, including job losses and reduced capital expenditure. The local market is struggling with storage issues, leading to even lower prices. Despite efforts like the OPEC deal, the market remains imbalanced. Recovery is expected to take several months, with a more balanced market anticipated next year.

What percentage of Texas's GDP is contributed by the oil industry?

• 5%

• 9%

• 15%

• 20%

What is the primary reason for the current difficulties faced by the oil industry?

• Lack of demand

• Oversupply

• High production costs

• Government regulations

What action are producers taking due to uneconomical production conditions?

• Increasing production

• Shutting down production

• Investing in new technology

• Hiring more workers

Why are local market prices lower than quoted prices?

• Improved technology

• Storage issues

• High demand

• Government intervention

What is the expected time frame for the market to stabilize?

• Several months

• Two years

• A few weeks

• A year