1. Global stocks shaken by continued drop in oil price
2. Average gas prices plunge 14 cents over past 2 weeks
3. Iran steps up oil market war with price discount

It feels good, doesn’t it? Paying less than $1.80 for a gallon of unleaded. Many cars can be filled up for around $20 or $25 these days. But those low gas prices could mean larger pain later on for East Texas and other economies that rely on petroleum.

There are now predictions that crude oil could drop even more. It’s something East Texas taxing entities should watch closely. It could mean less revenue and tighter budgets in the very near future.

“U.S. oil futures sank below the key $40-per-barrel level, and now crude could test August lows and possibly fall into the low $30s per barrel,” CNBC reports. “The latest U.S. government data show that oil supplies continue to build, though at a slower pace in the past week than in the prior week. But the figures reinforced that the global oil supply glut – with some 3 billion barrels stockpiled worldwide – is showing no signs of abating.”

West Texas Intermediate Crude, a good barometer, dropped to $39.91 on Wednesday afternoon.

CNBC quotes Gene McGillian: “I think the report just continues to underscore that we’re awash in oil, and there’s nothing seemingly changing. Production is still above 9.1 million.”

What’s more, oil could go even lower.

“McGillian expects to see oil drop next to the $37.75-per-barrel level, and if it breaks that, the next stop could be in the low $30s,” CNBC said.

What’s going on here? A couple of trends. First, OPEC continues to pump oil, in a poorly disguised effort to drive down prices and put a dent in U.S. hydraulic fracturing (fracking) operations. The Saudis and others see fracking as a nearly existential threat. If they can strangle it in its crib, they will.

At the same time, though, other producers (including Americans) continue to pump as much oil as possible just to stay afloat. If they had to sell a few thousand barrels a month at $90 per barrel to meet their budgets, they’ll have to produce and sell three times that at $30 per barrel. It’s the cruel math of desperation.

“To the dismay of the Saudis, Texas oil production has continued to increase since the oil price collapse from $100 (per barrel),” said Gates Brelsford, who runs Brelsford Personnel, an oilfield placement agency in Tyler. “One of the reasons is that our shale producers have needed sustained production volumes to try to get some revenue relief from low prices. Unfortunately, the gurus say that the oil oversupply situation will continue on into 2016 at least.”

So what does this mean for East Texas?

Fortunately, we can be reassured that the region is no longer solely dependent on petrochemicals for its livelihood.

These aren’t the bad old days of the mid-1980s, when the oil bust sent much of the region into an economic tailspin.

That will blunt the force of any fiscal blow. But it could still be a blow. Lower crude prices could soon mean tangible job losses – and a ripple effect.

Taxing entities must keep an eye on these numbers.