- Business Insider took a closer look at which cities could be hit hardest by the drop in oil prices.
- We used Bureau of Economic Analysis data to calculate mining, quarrying, and oil and gas extraction as a percentage share of gross domestic product in US cities.
- At the top of the list was Midland, Texas, which derives 66.21% of its GDPfrom mining and oil and gas extraction.
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The 18 US cities that could be hardest hit by the oil crash
Oil prices recently fell below zero for the first time, and analysts believe it could happen again next month, as the novel coronavirus pandemic continues and demand for oil remains low.
FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant
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Oil is dropping due to travel restrictions and lockdowns amid the novel coronavirus pandemic, and the decline in demand for oil and gas extraction could have a major impact on certain US cities that rely on the industry.
Oil prices fell below zero for the first time on Monday. West Texas Intermediate crude oil closed May contracts at negative $37.63 a barrel. Although US oil prices went back up on Thursday to over $16 a barrel , Goldman Sachs experts believe prices could fall into the negatives again.
To get a better understanding of how this turbulence could affect the economies of different cities around the US, we looked at how much mining and oil account for the percentage share of the GDP for all US cities and isolated the ones that could be most hurtby the oil drop.
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We used 2018 GDP figures of mining, quarrying, and oil and gas extraction, as well as total GDP by metro, from the Bureau of Economic Analysis , and then ranked the metros by the calculated percentages.
Midland, Texas, had the largest share at 66.21%, as $21.7 billion of its $32.8 billion in total GDP came from mining and oil and gas extraction. Following around 20 percentage points behind was Wheeling, West Virginia, at 46.15% or $5.7 billion of its $12.4 billion in total GDP.
Some other cities on the top of the list are located in Colorado, Louisiana, and Oklahoma.
The following are the 18 US cities with the largest share of mining and oil from the city's overall GDP:
18. Tulsa, Oklahoma: Mining, quarrying, and oil/gas extraction accounted for 10.87% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $6.2 billion
Total GDP: $57.2 billion
17. Bakersfield, California: Mining, quarrying, and oil/gas extraction accounted for 11.87% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $5.9 billion
Total GDP: $49.5 billion
16. Houma, Louisiana: Mining, quarrying, and oil/gas extraction accounted for 12.18% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $1.3 billion
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Total GDP: $10.4 billion
15. Beckley, West Virginia: Mining, quarrying, and oil/gas extraction accounted for 12.43% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $513.5 million
Total GDP: $4.1 billion
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14. Longview, Texas: Mining, quarrying, and oil/gas extraction accounted for 13.10% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $2.2 billion
Total GDP: $16.6 billion
13. Duluth, Minnesota: Mining, quarrying, and oil/gas extraction accounted for 13.29% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $2.1 billion
Total GDP: $15.8 billion
12. Williamsport, Pennsylvania: Mining, quarrying, and oil/gas extraction accounted for 13.42% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $887.6 million
Total GDP: $6.6 billion
11. College Station, Texas: Mining, quarrying, and oil/gas extraction accounted for 14.71% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $1.9 billion
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Total GDP: $13.3 billion
10. Shreveport, Louisiana: Mining, quarrying, and oil/gas extraction accounted for 16.90% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $4.0 billion
Total GDP: $23.8 billion
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9. Oklahoma City, Oklahoma: Mining, quarrying, and oil/gas extraction accounted for 18.38% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $14.9 billion
Total GDP: $81.0 billion
8. San Angelo, Texas: Mining, quarrying, and oil/gas extraction accounted for 19.13% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $1.4 billion
Total GDP: $7.1 billion
7. Farmington, New Mexico: Mining, quarrying, and oil/gas extraction accounted for 21.37% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $1.2 billion
Total GDP: $5.8 billion
6. Weirton, West Virginia: Mining, quarrying, and oil/gas extraction accounted for 22.25% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $1.5 billion
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Total GDP: $6.9 billion
5. Laredo, Texas: Mining, quarrying, and oil/gas extraction accounted for 25.80% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $3.0 billion
Total GDP: $11.7 billion
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4. Odessa, Texas: Mining, quarrying, and oil/gas extraction accounted for 27.33% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $3.4 billion
Total GDP: $12.6 billion
3. Greeley, Colorado: Mining, quarrying, and oil/gas extraction accounted for 35.25% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $7.0 billion
Total GDP: $19.8 billion
2. Wheeling, West Virginia: Mining, quarrying, and oil/gas extraction accounted for 46.15% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $5.7 billion
Total GDP: $12.4 billion
1. Midland, Texas: Mining, quarrying, and oil/gas extraction accounted for 66.21% of the metros GDP in 2018.
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GDP for mining, quarrying, and oil/gas extraction: $21.7 billion
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Total GDP: $32.8 billion
See Also:
SEE ALSO: 27 US cities that could see their budgets devastated by coronavirus
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