How will collapsing oil prices affect Texas? It depends on these two factors, experts say.

[TexasTowelie]

3. It means that instead of using domestic oil

we will be sending money to Saudi Arabia for the cheaper oil. That money may work its way into unsavory hands and finance terrorism. It also finances the whims of the Saudi royal family.

With lower oil prices, people will also feel like they can afford to travel which would have negative environment effects.

It also has a negative economic effect on banks and investments since the capital that is loaned to the oil industry cannot be repaid.

It effects other businesses since some people can no longer afford hotels, restaurants, new vehicles, and leisure activities.

It effects state governments since they have to pay more unemployment claims, SNAP benefits, and other welfare assistance.