Oil and the economy

The low oil prices also affect other energy, such as natural gas production. Cheap oil makes it less profitable to produce natural gas.
There's a glut of the NG supply right now, resulting less work ...

 

The compulsion some people have to suck Big Oil's collective cock -- or to argue to others that they'd be better off doing so -- is truly amazing.

 

For the most part, I think (and I'm sure Dr. Q will be along to correct me) a drop in oil prices is a net positive because it stimulates the rest of the economy. Money otherwise spent on gasoline and heating oil becomes available to spend in other areas of the economy. That stimulus most benefits consumers on the lower end of the spectrum who typically pay a higher percentage of their incomes on energy.

However, it shouldn't be ignored that a drop in oil prices also has obvious negative consequences for the energy industry, which has huge footprint in terms of jobs and investment and related industries.

Lower oil prices also increase deflationary pressure. I think this might be a part of the stock market's reaction, which is already concerned about potential deflation in Europe along with Athens demanding renegotiation of its bailout terms.

 

I don't know as I'd use the word "stimulate," but it's certainly a net positive. When oil's cheap it means there's a lot of it, which means a lot of other stuff becomes cheaper, too. Cheaper energy means a higher standard of living.

Oh, and hardee har har!

 

Aw shit. We're back to worrying about deflation now? And just when I got around to the pending inflationary doom being the scourge of humanity!

 

By the time they finish building all those much-needed apartments in western North Dakota, there won't be any oil workers to live in them.

"Welcome to the Boom Town ..."

 

A David & David reference. Golden!

 

After the U.S. frackers park their rigs, the glut will dry up, prices will spike again, the sheiks at OPEC make a killing, the U.S. rigs get back to work, the glut reappears, prices plummet, the U.S. frackers park their rigs, the glut will dry up, prices will spike again, the sheiks at OPEC make a killing, the U.S. rigs get back to work, the glut reappears, prices plummet, the U.S. frackers park their rigs, the glut will dry up, prices will spike again, the sheiks at OPEC make a killing, the U.S. rigs get back to work, the glut reappears, prices plummet, the U.S. frackers park their rigs, the glut will dry up, prices will spike again, the sheiks at OPEC make a killing, the U.S. rigs get back to work, the glut reappears, prices plummet, etc.

You get the idea.

 

Mr. Heller might want to take notice of the direction of stock prices and re-do that second panel.

 

Look for energy companies deep in debt to start causing real problems.

http://www.wsj.com/articles/deep-debt-keeps-oil-firms-pumping-1420594436

 

I applaud the Tennessee GOP leadership for discussing increasing the state's gas tax for the first time in decades, in order to pay for infrastructure improvements.

Now's the time for all states to do this. The jobs this would create would offset many of the losses in the oil industry, and would improve all of our well being.

http://www.tennessean.com/story/new...x-increase-gains-momentum-tennessee/20663975/