Posted on 05/22/2015 10:10:17 AM PDT by thackney
Full Title: Cheaper oil isn't such a benefit for US economy anymore as pullbacks in drilling cause damage
If there was one thing most economists agreed on at the start of the year, it was this: Plunging oil prices would boost the U.S. economy.
It hasn't worked out that way.
The economy is thought to have shrunk in the January-March quarter and may barely grow for the first half of 2015 — thanks in part to sharp cuts in energy drilling. And despite their savings at the gas pump, consumers have slowed rather than increased their spending....
So what did they get wrong?
It turns out that the economic effects of lower energy prices have evolved since the Great Recession. Corporate spending on drill rigs, steel piping for wells and railcars to transport oil has become an increasingly vital driver of economic growth. So when oil prices fall and energy companies retrench, the economy suffers....
(Excerpt) Read more at calgaryherald.com ...
Some times Joe you just have to shake your head and smile or as the penguins in the movie Madagascar say “Just smile and wave boy’s just smile and wave”.
Believe it or not, there are occasions when I do just that.
One knows when the other persons argument is bullshit when the conversation goes from facts to misspelling a word. Fracking ,frakking , fraccing, phracking.....there!!!!
Thanks for the additional comments.
Thanks also for the http://www.gasbuddy.com mention. I’ll check it out.
My lowest cost was $2.299 on 01/30. (Regular)
Two days ago I paid $3.799 only to come on Free Republic and read about the destructive (to oil production now) low cost of oil.
That’s why I asked what gives with the cost of gasoline.
Not to mention all the excess cash in people’s pockets they can spend on other things like food, supplies, other goodies.
All these spur the economy.
If people have a couple of cars and are filling each three times per month, a $1.50 per gallon drop in price can amount to a fair amount of extra cash in your pocket.
12.5 gallons x 3 x 2 x $1.50 = $112.50.
That’s like getting a raise of $1,350 per year that’s non-taxable.
1000 homes, we’re talking some big disposable income out there.
$1,350,000 dollars...
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