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Experts: No need for knee jerk reactions from oil companies due to Coronavirus... yet

If the spread is not contained within another fiscal quarter, Permian Basin companies could see complications.

MIDLAND, Texas — On February 26, a case of the Coronavirus was confirmed in Brazil. The discovery means that the virus has been found in every continent in the world except for Antarctica.

With over 80,000 cases worldwide, all eyes including those of Permian Basin-based businessmen like Tommy Taylor are monitoring the highly contagious virus.

"I think we're concerned somewhat and we are watching," said Taylor.

Tommy Taylor is a director of development at Fasken Oil and Ranch, and with over 35 years of industry experience, Taylor has seen it all.

"We're still here and we've been through some really tough times, we've been through when oil was selling for $6 a barrel," said Taylor.

Taylor says he has confidence in the CDC and WHO to get control of the virus before it becomes a pandemic, but if that were to happen he knows his industry could take a hit

"Well for the oil industry, the negative consequence, besides people being out of work or being sick, is the price of oil and if we do reach a pandemic situation where it's in the United States you would expect demand to drop off and the price," said Taylor.

Based in Waco, Ray Perryman is a man who has made his living forecasting economic environments.

"If it continues to rise and becomes a greater concern it is going to slow down global growth for a time," said Perryman. 

Perryman is no stranger to the Permian Basin. He has a home in Odessa and was hired as a consultant to the Priority Midland movement.

"The Permian Basin is definitely vulnerable to something like this in the long run and even in the short term as it effect oil prices all of those things matter in the Permian Basin, but once it is under control we have found repeatedly under many circumstances for many cases over centuries the economy is capable of rebounding very quickly," said Perryman.

Perryman says genuine impacts could be felt or seen in the Basin if the spread of the virus remains out of control through another fiscal quarter.

Though it's too early to tell if the consequences of this outbreak will be temporary or a permanent change in how we see the world economy.


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