As temperatures in the Rocky Mountains have been dipping, I have
been curious how the thermometer on Colorado's economy is
reflecting the nose-dive in commodity prices this year.
How "cold" is it, exactly?
We have previously discussed the real life impacts and the human
toll associated with deflated oil and gas prices, including
layoffs, the
reduction in rig counts, closure of several oil and gas
company's Denver offices,
decisions to down-size work forces and the collateral effects
of the downturn in oil on small businesses and many service
industries.
5280 Magazine recently ran an article that caught my eye while I
have been considering these impacts: "Will Big Oil Tank Colorado's Economy –
Again?" They
report that the good news is that while many have a sense of
déjà vu from the bust of the mid-1980's and this
year's falling oil prices have certainly hurt the Colorado
economy, it likely will not end in catastrophe this time.
