In the mid-1980s, the oil producing states of Louisiana, Texas, and Oklahoma began to witness companies pursuing a __________ strategy when the price of oil reached uncharacteristic lows. It was no longer cost-efficient to explore for oil and to maintain so many rigs on land and in the Gulf of Mexico. These states witnessed massive layoffs and closures of many oil fields and refining facilities.

Question

Quizplus · Accepted Answer

The correct strategy is retrenchment, which involves reducing operations to cut costs and stabilize the business during periods of financial difficulty, such as when oil prices are low and exploration becomes cost-inefficient.

In the Mid-1980s, the Oil Producing States of Louisiana, Texas