The Oil Boom That Went Bust
As part of the OPEC oil embargo of 1973 and the Iranian Revolution of 1979, Texas producers had big incentives to drill for oil. This resulted in an oil boom with the price of a barrel of West Texas Intermediate crude soaring from about $16 to $40. However, this optimism was unfounded, and soon enough the allure of big profits produced too much of a good thing, resulting in the price of crude dropping to $10.42. This collapse impacted the entire state, with over a quarter of a million jobs lost in Houston, banks calling in notes and real estate developers going bankrupt. Read full article here