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Impact in Arizona and Tucson of drop in oil prices

Posted at 10:17 PM, Apr 20, 2020
and last updated 2020-04-21 01:17:34-04

TUCSON, Ariz. — "This is a once in a lifetime, hopefully, event."

Even Dr. Daniel Scheitrum, from the UArizona College of Agricultural and Life Science's Department of Agriculture and Resource Economics said this price drop is unheard of.

"You shouldn't have to pay someone to take it off your hands, if you have corn that you don't want to sell you can always just ignore and let it just stay on your field."

"You're really not going to be able to see much of this at the pump," Scheitrum said.

Just because oil is worth nearly nothing doesn't mean it doesn't cost as much to refine or even move cross-country.

"It's not going to be delivered to gas stations for free, it's not going to be put in your vehicle for free."

Not great news for your wallet but on the bright side, Scheitrum said, you're lucky to live Arizona.

"Arizona is unique in we really don't have quite a lot of energy production in our state."

He said there is one thing you can do to support the oil industry in the United States.

"Fill up your car with gasoline, fill up your truck with diesel, that's about as much as you can do."

In the long-term, Scheitrum said, oil prices likely won't stay down even into next month.

"Certainly doesn't seem like the sky is falling at the moment."