>>> LIVE FROM KPRC, THIS IS
CHANNEL 2 NEWS AT 6:00.
CHANNEL 2 NEWS AT 6:00.
>>> AND TONIGHT AT 6:00, CRUDE
>>> AND TONIGHT AT 6:00, CRUDE
OIL COLLAPSED.
OIL COLLAPSED.
THREE WORDS NO ONE IN HOUSTON’S
THREE WORDS NO ONE IN HOUSTON’S
OIL COMMUNITY WANTS TO HEAR.
OIL COMMUNITY WANTS TO HEAR.
>> THE CORONAVIRUS CRISIS
>> THE CORONAVIRUS CRISIS
SAPPING DEMAND, SENDING CRUDE
SAPPING DEMAND, SENDING CRUDE
PRICES INTO NEGATIVE
PRICES INTO NEGATIVE
UNPRECEDENTED TERRITORY.
UNPRECEDENTED TERRITORY.
THEY ARE RUNNING OUT OF PLACES
THEY ARE RUNNING OUT OF PLACES
TO STORE EXCESS BARRELS AND THEY
TO STORE EXCESS BARRELS AND THEY
ARE PAYING TRADERS TO TAKE OIL
ARE PAYING TRADERS TO TAKE OIL
OFF THEIR HANDS.
OFF THEIR HANDS.
>> FIRST TIME IN HISTORY THAT’S
>> FIRST TIME IN HISTORY THAT’S
HAPPENED, AND HERE’S THE RESULT,
HAPPENED, AND HERE’S THE RESULT,
OIL PRICES PLUNGING, FALLING
OIL PRICES PLUNGING, FALLING
BELOW 0, CHANNEL 2’S BRITNEY
BELOW 0, CHANNEL 2’S BRITNEY
JEFFERS IS COVERING THIS, AND AS
JEFFERS IS COVERING THIS, AND AS
WE KNOW, THE ECONOMIC IMPACT
WE KNOW, THE ECONOMIC IMPACT
COULD SEND A LOCAL EFFECT
COULD SEND A LOCAL EFFECT
THROUGH THE LOCAL ECONOMY.
THROUGH THE LOCAL ECONOMY.
>> Reporter: COULD BE VERY
>> Reporter: COULD BE VERY
DIFFICULT FOR SO MANY PEOPLE
DIFFICULT FOR SO MANY PEOPLE
ACROSS THE CITY BECAUSE AS YOU
ACROSS THE CITY BECAUSE AS YOU
MENTIONED, IT’S DOWN TO SUPPLY
MENTIONED, IT’S DOWN TO SUPPLY
AND DEMAND.
AND DEMAND.
PEOPLE ARE STAYING HOME BECAUSE
PEOPLE ARE STAYING HOME BECAUSE
OF THE CORONAVIRUS, AIRLINES ARE
OF THE CORONAVIRUS, AIRLINES ARE
NOT FLYING, OTHER BUSINESSES
NOT FLYING, OTHER BUSINESSES
SHUT DOWN, AND SO THE DEMAND FOR
SHUT DOWN, AND SO THE DEMAND FOR
OIL HAS DROPPED DRAMATICALLY,
OIL HAS DROPPED DRAMATICALLY,
AND YOU LIKELY HAVE SEEN IT HERE
AND YOU LIKELY HAVE SEEN IT HERE
AROUND THE CITY AT THE GAS
AROUND THE CITY AT THE GAS
PUMPS, BUT THE PRICE THAT YOU
PUMPS, BUT THE PRICE THAT YOU
SEE IS NOT GOOD FOR THE CITY OF
SEE IS NOT GOOD FOR THE CITY OF
HOUSTON.
HOUSTON.
A DRAY DRAMATIC DROP AT THE GAS
A DRAY DRAMATIC DROP AT THE GAS
THIS DRIVER SAYING $1.68 FELT
THIS DRIVER SAYING $1.68 FELT
LIKE A BREAK, AND ACCORDING TO
LIKE A BREAK, AND ACCORDING TO
AAA, A YEAR AGO THE PRICE IN
AAA, A YEAR AGO THE PRICE IN
HOUSTON WAS $2.60.
HOUSTON WAS $2.60.
WHILE IT’S A BREAK FOR CONSUMERS
WHILE IT’S A BREAK FOR CONSUMERS
RIGHT NOW, THERE WILL BE A TOLL
RIGHT NOW, THERE WILL BE A TOLL
TO PAY.
TO PAY.
>> THIS IS THE LIFELINE FOR
>> THIS IS THE LIFELINE FOR
MANY, MANY.
MANY, MANY.
>> Reporter: HE’S THE CHIEF
>> Reporter: HE’S THE CHIEF
ENERGY OFFICER AT THE UNIVERSITY
ENERGY OFFICER AT THE UNIVERSITY
OF HOUSTON, AND HE SAYS THE
OF HOUSTON, AND HE SAYS THE
ECONOMIC SHUTDOWN CAUSED BY
ECONOMIC SHUTDOWN CAUSED BY
COVID-19 AND THE FALLEN OIL
COVID-19 AND THE FALLEN OIL
PRICES WILL BE FELT IN HOUSTON.
PRICES WILL BE FELT IN HOUSTON.
>> WITH THE OVERSUPPLY OF CRUDE
>> WITH THE OVERSUPPLY OF CRUDE
OIL AND PRICE DROPPING, WE’RE
OIL AND PRICE DROPPING, WE’RE
GOING TO SEE MASSIVE LAYOFFS,
GOING TO SEE MASSIVE LAYOFFS,
FURLOUGHS, LAYOFFS, AND
FURLOUGHS, LAYOFFS, AND
POTENTIALLY DEVASTATION OF THE
POTENTIALLY DEVASTATION OF THE
OIL AND GAS INDUSTRY.
OIL AND GAS INDUSTRY.
>> Reporter: IT’S NOT JUST
>> Reporter: IT’S NOT JUST
PEOPLE WORKING IN THE INDUSTRY
PEOPLE WORKING IN THE INDUSTRY
TAKING A HIT.
TAKING A HIT.
HE ADDED THE TRICKLEDOWN WOULD
HE ADDED THE TRICKLEDOWN WOULD
BE SERIOUS PERCOLATING INTO
BE SERIOUS PERCOLATING INTO
TRAVEL, REAL ESTATE, RETAIL,
TRAVEL, REAL ESTATE, RETAIL,
RESTAURANTS, AND CONVENTIONS.
RESTAURANTS, AND CONVENTIONS.
ON SUNDAY, THE ORGANIZATION OF
ON SUNDAY, THE ORGANIZATION OF
PETROLEUM EXPORTING COUNTRIES
PETROLEUM EXPORTING COUNTRIES
PLUS ANNOUNCED HISTORIC CUTS.
PLUS ANNOUNCED HISTORIC CUTS.
NEARLY 10 MILLION BARRELS PER
NEARLY 10 MILLION BARRELS PER
DAY IN MAY AND JUNE AND WITH THE
DAY IN MAY AND JUNE AND WITH THE
PRICE PER BARREL PLUMMETING, HE
PRICE PER BARREL PLUMMETING, HE
SAYS WHAT WE NEED RIGHT NOW IS A
SAYS WHAT WE NEED RIGHT NOW IS A
TURNAROUND.
TURNAROUND.
>> WE HOPE IT GETS BETTER TO $35
>> WE HOPE IT GETS BETTER TO $35
PER BARREL QUICKLY BECAUSE
PER BARREL QUICKLY BECAUSE
THAT’S THE ONLY WAY THE INDUSTRY
THAT’S THE ONLY WAY THE INDUSTRY
WILL SURVIVE, AND WE, AS A
WILL SURVIVE, AND WE, AS A
STATE, CAN PROSPER.
STATE, CAN PROSPER.
>> Reporter: AND SOMETHING
>> Reporter: AND SOMETHING
ELSE TO KNOW IN LOOKING AT THE
ELSE TO KNOW IN LOOKING AT THE
NUMBERS IN THE LAST 20 YEARS,
NUMBERS IN THE LAST 20 YEARS,
THE LOWEST PRICE PER GALLON IN
THE LOWEST PRICE PER GALLON IN
THE STATE WAS DOWN TO 1.02.
THE STATE WAS DOWN TO 1.02.
THAT WAS BACK IN 2001.
THAT WAS BACK IN 2001.
LIVE IN SOUTHWEST HOUSTON, KPRC,
