HOUSTON (AP) — Oil busts aren’t new for Houston, known as the energy capital of the world.
But Houston is now in uncharted territory grappling with an oil downturn in the middle of a pandemic.
The coronavirus has shut down much of Houston’s economy, slashing jobs and revenue.
The city could have a budget deficit of about $200 million.
At the same time, the price of oil plunged as demand plummeted due to the worldwide lockdown.
A third of Houston’s economy depends on oil. Economists say this one-two punch from COVID-19 and the collapse in oil prices will make it much harder for Houston to recover financially.