CHICAGO — The economies of U.S. oil-producing states are still suffering from last year's severe drop in prices, according to a survey released Monday.
Banking and business failures continued to swell, with bank failures rising by more than 66% in the first nine months of this year compared to the same period in 1986, the American Petroleum Institute study said.
It noted that the Federal Deposit Insurance Corp. had listed Texas and Oklahoma as having the highest number of banking failures during the nine months, with 38 and 26 respectively, compared to 19 and 11 in the 1986 period.
The Washington-based oil industry trade group, which is holding its annual convention here, said business failures continued to be heavy in the west south central region, which includes Texas, Louisiana, Oklahoma and Arkansas.
Citing a report by Dun & Bradstreet Inc., it said that region endured 21.6% of the nation's business failures in the first eight months of this year--or 9,329 out of a total 43,132.
The survey covered government and industry data for 10 states between January and September, or the latest available period.
Other economic indicators included in the study were bankruptcy filings, unemployment rates, rotary drilling rig counts, reported drilling well completions and crude oil production totals.
Tax Revenue Off
Other states included in the survey were Alaska, California, Colorado, Kansas, New Mexico, North Dakota and Wyoming.
Figures on Arkansas as a separate state were not included in the rest of the survey.
Citing a preliminary U.S. Census Bureau report on state government tax revenue for the 12-month period ending in June, it said Alaska suffered the worst drop, at 42%, followed by declines of 22% in Wyoming and 11% in Oklahoma.
All but California, Kansas and North Dakota had unemployment rates in August--the most recent month available--that were above the national unemployment rate of 5.8%, it said.