• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Industry in Peril: How COVID-19 Is Affecting Everything from Oil Prices to Films

By Corazon Gritar

COVID-19 has affected many parts of daily life across the world, but it’s impacting more than just the individual. Towns, cities, companies, and industries have been affected in varying ways over the past month. Many major industries have seen downturns and layoffs. Here is a look at a couple of the industries that have been affected the most.

Oil and Gas

Recently, the virus has caused a massive fall in the price of oil. Crude oil prices dropped into the negative for a couple of days before climbing back to rest at around $12 a barrel at the start of the week.

Crude oil is used to make gasoline and a variety of other products. Most crude oil comes from the Middle East and is priced through contracts. COVID-19 has, however, brought oil shipping to a standstill.

This is, in part, due to a decrease in demand for oil as more people work from home and forgo traveling. As such, the supply is rising fast. In fact, oil storage centers across the globe are nearly full. This massive oversupply is causing the price to drop as sellers desperately try to unload the oil they have.

For many Americans, the impact of crude oil prices dropping is lower gas prices. However, those prices are a double-edged sword. While they may lead to more gas station openings in the short-term, the long-term analysis carries different results. Most gas stations make their money off of the convenience store items they sell: items no one is buying right now. In the long-term, gas stations struggling to stay open might end up like the 70% of all business partnerships that fail.

The specialty gas market, including the production of oxygen and other pure gases and gas mixtures, has reacted to COVID-19 as well. There has been a significant increase in the demand for oxygen, both in liquid and gas form, which has skyrocketed. Many manufactures of medical grade oxygen tanks are struggling to produce them fast enough to meet the demand.

Entertainment and Tourism

Another industry hit hard by the virus has been entertainment. From movie sets to concert halls, the shut down of large gatherings and the enforcement of social distancing has left even Hollywood strangely empty. Despite the shut down of filming, it’s not actors who have been hit hardest by the lack of work.

Rather, it’s the camerapeople, prop artists, technicians, and artisans who make movies and television shows possible who are struggling the most. Some workers are going on unemployment for the first time in 30 years and others are receiving aid from food banks as they deplete their savings to stay afloat.

It’s hardly just Hollywood that’s affected. Entertainment professionals across the country are out of work since large gatherings are no longer happening. From birthday clowns to small-town bands, so many professionals are unable to put on money-making performances. Beyond that, many of them are self-employed or rely on gigs so they are unable to apply for unemployment.

This also could include tourism and travel, which have been massively affected. Across the country, museums, theme parks, and more are closed. Small towns and businesses that rely on tourism are all but out of business. Cruise lines, hotels, and airlines are trying desperately to stay afloat by laying off workers by thousands. Altogether, the entertainment and tourism industries are in dire straights.

Looking to the Future

These examples are hardly the only industries that have been affected by COVID-19. In fact, the entire economy has been affected by the virus. Speculations are rife: some believe that there will be increases in white-collar crime, an often prison-worthy offense even if the perpetrator has no prior criminal history. Others are proclaiming there will vast differences in how goods and services are bought and sold.

The COVID-19 situation is ever-evolving and changing, and there are likely to be even more industries in crisis as it continues.

Photo Credits: stock photo

May 4, 2020

The Question of the Week:

Will you be taking a summer vacation in 2022 that's more than 500 miles from home?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Back to the Borscht Belt
  • Buying Your First Home? Here Are Some Financial Assistance Options
  • Yes, You Can Afford It!
  • 100 Words On: Why It’s Not Poor Etiquette to Put Ketchup on a Hot Dog
  • 6 Responsible Ways to Use Your Emergency Funds
  • 5 Affordable Ways to Upgrade an Outdated Bathroom
  • The 6 Most Valuable Grocery Store Products
  • Black Coffee: Out to Lunch
  • How to Set Up a Proper Gambling Budget
  • How to Guarantee a Social Security Disability Claim

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The Great Paper Towel Test: Which Brand Is Your Best Value?
  2. 2. How a Broken Washing Machine Fixed My Finances
  3. 3. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  4. 4. Lottery Fraud: Don’t Get Caught Paying “The Stupid Tax”
  5. 5. What’s the Fastest Way to Pay Down Your Mortgage Early?
  6. 6. The Marriage Conundrum: Joint or Separate Accounts?
  7. 7. Why Time Is More Valuable Than Money
  8. 8. 25 Examples of Shrinkflation That No Longer Fool Consumers
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022