Posted on 04/03/2016 2:35:44 PM PDT by Lorianne
The U.S.'s embarrassment of oil riches may not have been that beneficial after all.
Those are the findings of a recent Goldman Sachs report, in which the bank explained that the net effects of cheaper crude on growth have been "negative so far," given the impact on oil producers who are now finding it hard to churn out more black gold while maintaining needed levels of capital expenditures.
Although Goldman acknowledged a lift to consumer spending, the summary constituted an admission that the virtues of the boom that sent U.S. oil production skyrocketing, leaving world markets awash in inexpensive crude, may not have delivered the economic boost many observers had anticipated at its outset.
"While cheap oil has … become 'too much of a good thing' for growth, the employment impact of lower oil prices is likely still positive, reflecting the modest effect on employment of the capital-intensive energy sector," Goldman wrote.
(Excerpt) Read more at cnbc.com ...
People who are making good money don’t need loans.
This is inconvenient for Goldman Sachs.
Did Goldman run this by sCruz and his wife Heidi, BTW where is Heidi?
Odd how our “betters” fear us having enough of anything.
FGS, let it fail next time.
Lower energy prices represent an unmitigated good for consumers, do they not? Everything we buy. Food, transportation, packaging, plastics, paint, chemicals, medicines, electricity, the list is near endless of things made cheaper by lowered energy costs.
I understand the devastation done to the oil patch, and down-stream suppliers too. It’s a shame. But if the question is what is the net benefit to the economy, there are 360 million consumers who benefit in a small way, and far fewer in the economy that suffer in a great way. Net benefit. Period.
Says the wheeling and dealing whorehouse that just loved $100+/barrel oil.
No doubt it has hurt their Middle Eastern investments. Cheap fuel is only of benefit to those pesky common folk.
But, but, aren’t we at “peak oil”? We’re sure to run out soon and then prices will skyrocket praise goldman!
And every gallon we pump here is one less gallon we need from the Arabs.
Let’s see now, on one side are the oil producers and Wall Street,
On the other side is mainstreet America, manufacturers of goods such as plastics other energy users, the transportation industry, Sunday afternoon pleasure drivers (like me), and many more.
So they manipulate prices to give the benefit oil companies and wipe their feet of the rest of the country. Crazy!!!
“Lower energy prices represent an unmitigated good for consumers, do they not? “
Well, I haven’t seen the prices of finished goods (plastics, paints, processed oils, and so on) exactly tumble. When prices return to a “new normal” (which I’m guessing will be around $60-70), there will be big-time rampant inflation as the suppliers of those things pass on “increased energy/oil costs”...
I think that new normal will be achieved by fracking essentially putting a “cap” on oil prices. Oil goes up, more fracking comes on line. This might be stable for quite some time.
The ruling classes really do hate the people.
Period. End of story. Done. Finished. You are correct. Stated more simply, however, paying more is NEVER EVER EVER EVER EVER EVER a good thing.
Wait, aren’t these the SOBs who sold us ‘Fwee Twade’ on the line that more competition would result in rock bottom prices?
Now that the competition for oil brought out far more supply then demand actually could digest, they’re upset?!
Really?
What’s next, guaranteed profits for favored businesses, like Investment Banks? Oh wait...we already went there with this garbage, that’s how the CEO got his $25 million condo.
Only for the next couple hundred years, until we get the Mr. Fusions on the back of our Teslas.
So the obvious question is why haven’t prices on everything dropped?
Hillary and the rest of the ruling class would sell us down the river to allow the Saudis to be our main supplier. Heck, she green-lighted the sale of a US uranium company to the Russians.
Then again the basic economics would say that we’d pump the Kingdom dry before we’d begin using serious amounts of more-expensive US oil.
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