We might be in the middle of an oil bubble and not a boom, according to Paul Ashworth and Paul Dales of Capital Economics. Largely thanks to Texas and its increased production of oil, the nation’s economy has been growing, albeit at a tepid rate. But the Lone Star State may fall on hard times, as the drop in oil prices may send Texas oil fields into a recession – just the way things went down in 1986. Ashworth and Dales write, “The big risk now is that, because of the relatively high costs of shale production, the slump in oil revenues will be compounded by a big drop in production. Accordingly, the hit to real GDP and employment could be more severe than in 1986.” That means all the job growth will evaporate and the price of gas will once again climb – the two stars on the nation’s economic horizon. Here’s hoping Texas can keep on pumping and the nation’s economic motor revs beyond idle. More…