The Oil Price War - OPEC Driving down prices

[HuskerNBigD]

Maybe huskerfan120889 works on a North Dakota oil rig and used his earnings to make a bunch of terrible investments in junk energy bonds?

 

Nope, work in Dallas and earnings go elsewhere.

[StPaulHusker]

OPEC could cut production by 1 million barrels a day but is electing not to.

[TGHusker]

You're telling me that the shale oil boom has resulted in large employment? You don't say. That's why it's called a boom. Okay, so several things...

 

The economy isn't a zero-sum game, but many times it operates somewhat under those principles. What I'm getting at is that the average consumer is going to have a lot more money available that would have been previously spent on petroleum products, namely gasoline. The estimates I've read range from $500-$1200 per household. Guess what? That money doesn't disappear into the ether. It gets spent. People use it to buy stuff, more stuff, other than gasoline. Buying goods and services. That spending literally is the economy. More spending = a big economic boost. And guess what results from greater demand for goods and services? Jobs. Any job loss to energy companies is likely to be offset by jobs elsewhere.

 

You're worried about junk bonds? Literally bonds that most investors won't touch, especially for retirement purposes? You're saying this is bad for the little guy and fine for the wealthy, but then suddenly it's 'won't someone think of the banks and hedge fund managers speculating on junk bonds?' Man, this is priceless.

 

Nobody is arguing that there won't be drawbacks in some areas. But the overall impact will be almost undoubtedly good for a nation that is a huge net importer of oil.

good points.

I guess we all need to think of the lower gas prices like the old 'peace dividend' after the cold war ended - a nice unexpected windfall - sock it away or spend it - which will help the economy to grow in other ways