Not so fast!
Super low oil prices will also cut jobs in the Dakotas, and shut down domestic energy. They are also an indicator of a weak economy.
I didn’t say super low, I said lower. Super low would be $20 a barrel. Lower would be $60 a barrel. IIRC, fracking, as well as other types of drilling are only profitable if the barrel price is over $40.
As our economy is still very weak, and unemployment is high, there is a temptation to conserve all jobs, no matter what. However, as in all products, innovation and competition lower prices, and often reduce the need for workers. In the short term, it can be devastating. In the long run, it is better for the economy as a whole.
Weak economy ? Were ? Here in the USA ? or globally ?
I believe it’s the world’s economy most notible China and Europe plus the USA that is weak.
However lower oil prices will provide a much needed jolt to the US economy from cheap energy therefore the economy improves, therefore demand rises, so the price of oil rises.
But now ? We are relying more on our domestic supply that is NOT influenced by outside instability most notible the manipulation of OPEC and a unstable middle east.