Are Low Gas Prices Actually Hurting The Economy?
Rejoice America, oil prices have fallen below $50 per barrel! Motorists have been saving over a grand a year at the pumps for a few years now. But, are the low gas prices actually hurting the economy? In some ways they are.
Above is the actual price I paid last week at the Indian Reservation just 11 miles from my home. Yes, I'll make the trip to save even more when filling up. I do wonder if the low prices are hurting in some way as we've recently seen a tumbling in the stock markets. This is the worst early year start for the markets since the Great Recession of 2008!
According to The Daily Signal:
Though oil prices fell below $50 per barrel as of Monday, Jack Gerard, CEO of the American Petroleum Institute, the largest U.S. lobbying arm for the oil and natural gas industry, expressed little concern.
Although, it appears that big oil has been spending less money.
The drop in oil prices is causing production companies to scale back on investment — earning less profit.
This could mean that investing in more pipelines will decrease along with spending money on alternate forms of energy. This will likely kill some jobs. The cost of doing business, I guess.
Personally, the elimination of fracking and increasing US oil production along with looking for new energy technologies and gas prices staying low is what I hope for in the future.