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Very good. Oil is used to make plastic, gas and other materials used by almost every industry. It might hurt a select few but, overall, it's very good news.
Here is a partial list of products that (not always) but in many cases, can be derived from petroleum.
Generally speaking the price of oil would probably level out to a point where those who get it out of the ground can do so AND still maintain a profit margin.
The most important thing to keep in mind is that domestically sourced oil ensures that all profits generated are domestic in nature (and that makes for a healthier domestic economy).
I just wonder about the longer term effects (of low prices) on sovereign nations that rely on oil production as a large part of their economies:
Norway
Venezuela
Mexico
Russia
Brazil
Saudi Arabia
UAE countries...
Good for me personally. Sure it hurts the American oil industry, but i don't care where my tank of gas comes from.
Meh, it doesn't hurt the major players. The Halliburtons, Baker Hughes, etc. They prepare for this. All that we lose is the wildcaters that stake their life savings into bringing in a well. They will go by the wayside along with a ton of small support companies.
Meh, it doesn't hurt the major players. The Halliburtons, Baker Hughes, etc. They prepare for this. All that we lose is the wildcaters that stake their life savings into bringing in a well. They will go by the wayside along with a ton of small support companies.
Doesn't hurt the higher ups at those companies...downturns never do.
Does it hurt the rank and file oil field worker? Given enough time, yeah, it will.
Here is a partial list of products that (not always) but in many cases, can be derived from petroleum.
Generally speaking the price of oil would probably level out to a point where those who get it out of the ground can do so AND still maintain a profit margin.
The most important thing to keep in mind is that domestically sourced oil ensures that all profits generated are domestic in nature (and that makes for a healthier domestic economy).
I just wonder about the longer term effects (of low prices) on sovereign nations that rely on oil production as a large part of their economies:
Norway
Venezuela
Mexico
Russia
Brazil
Saudi Arabia
UAE countries...
Please try to avoid partisan politics in this discussion, the subject is simple:
Gas and Oil prices are very low right now. Overall, is it good or bad for USA and why?
Here's the kind of points I'm after:
Good:
-Cheaper fuel sparks economy
-Makes us less dependent on foreign oil
-more spendable money in people's pockets
Bad:
-The oil companies are obviously hurting (economic driver)
-Lower oil prices could disrupt some economies (Russia, KSA, etc) which could cause instability
-Oil exploration and/or alternative fuel research put on hold (this might be seen as good for some).
Like I said, I don't want to debate the partisan aspects of this.
In general, do you see the reduced oil prices as good or bad?
(My opinion is still forming, but I see it as more good than bad, but as listed above it has pros and cons, IMO.)
Let's do what's good for America for a change. Opec has been raping us for years and Russia is our Enemy. Opec is freaking out they will not receive as many American Dollars. Opec and Russia has got use to Western Luxury. Less likely we may intervene in a Middle Eat Crisis.???
Low fuel prices keeps America Safer economically and from the view of National Defense.
I fully agree with all points here (and thank both of you thus far for good responses). I think gas is a small part of what cheap oil will effect. For instance, manufacturing is cheaper here, so more factory jobs could return to USA. Then again, transportation is cheaper too, so getting imports here is cheaper...
Low oil prices impact every single product across the board from transportation to production to agriculture to pick another one.
All one has to do is look at what happened to the world economy whenever energy, mostly oil, prices went up and then what happened when they went down.
During an increase inefficient sectors get squeezed out, offshored or automated. That's one reason why we have fewer manufacturing jobs today. The oil price shocks of the 1970s started the process of wringing those jobs out of the US to lower cost areas.
Lower gas prices should lower the cost of food, and across the board items we buy . Diesel fuel that move the 18 wheelers has come down drastically . The shipping costs will come down as well leaving more room for a lower cost in the stores.
Households will have more buying power to boost the economy with the cost of driving cut in half.
The diesel in Michigan sure has not come down.
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Are Lower Oil Prices Good Or Bad For The USA?
