Wednesday, December 17, 2014

Keating on CNBC: ‘Grin and Grimace’ over Oil Prices

ABA President and CEO Frank Keating yesterday discussed the two sides to this year’s major decline in oil prices on CNBC’s “Street Signs” program, describing it as “grin and grimace.” “Consumers are grinning; we can buy more, we can save more,” he said. “It was American genius that made this happen, but it has its downside.”

That downside comes from the effects of declining prices on job growth and state revenues in the oil patch — a much bigger area thanks to newer technologies such as fracking and horizontal drilling. Thirty-five states are producers of oil and gas, Keating explained. “The residuals and ancillaries are very significant. The decline is worrisome but not calamitous — yet.”

Watch the interview.

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