Utter BS....
Cheap(er) oil may not be so great for oil companies, but the economy benefits greatly from people having more disposable income in their pockets when they don’t have to spend as much for their gas.
Many individuals benefit from lower fuel prices.
But many individuals have losses with fewer jobs, less overtime and resulting in significant less spending.
The US is the third largest oil producer in the world. We also have significant oil equipment and services supplied from us to the rest of the world.
It is naive to believe the drop in oil prices and the resulting drop in drilling, equipment, labor etc would not have an impact.
Correct. Also, their argument is a logical fallicy. There is not necessarily a cause-effect relationship between lower oil prices and drilling. During the time of lower drilling costs, that is when the need to drill in new locations becomes most cost efficient. ANWR...
The market does what the market does. Leave it alone. It will produce the optimum balance between production and price. Any attempt to tilt the balance from outside the market will make things worse all around, except for the enhanced self-importance of bureaucrats.
The price of energy affects virtually every business in a negative way except for the oil companies. Rex Tillerson said Exxon Mobile can do well at $40.00 a barrel....since he admits to that figure I suspect the real figure is less. Big oil has had a good run....the time to pay the piper is at hand.
Except that people don’t have more disposable income. Any savings at the gas pump is being used up by higher insurance, tax, food staples and other necessities.
talking sense here.
Cheap(er) oil may not be so great for oil companies, but the economy benefits greatly from people having more disposable income in their pockets when they don’t have to spend as much for their gas.
...
The government has FUBAR’d the economy to the point that nothing makes sense anymore, plus journalists are absolutely sure that they know everything.
I know. The economy will really take off when gas hits $5/gallon.
These reporters really need to get out more often.