Governor Ritter and too many legislators have been counting on the oil and gas industry to protect us against a recession. Note that these are the same people who argue against shale oil on the basis of Black Sunday a few decades ago.
Here comes the bad news your mother warned you about:
Energy companies are slashing operating budgets as Colorado's once-booming oil and gas industry struggles with plummeting commodity prices, a tight credit market and an uncertain regulatory environment.Hiring freezes have been implemented in an industry that just six months ago struggled to fill open positions. The effects of the cutbacks are trickling to other companies, such as law firms that provide service to oil and gas operators.
News flash: it ain't just the law firms. It's trucking companies, hotels, housing, construction, pipeline companies, metalworking, logging, and everything else upstream from the hole in the ground. It's not just severance taxes, guys.
They'll base the budget on a cyclical industry, but won't allow it to grow to take advantage of the upturns.