Gas prices amazingly low! “The Good, The Bad & The Ugly “

Jan 09, 15 Gas prices amazingly low! “The Good, The Bad & The Ugly “

The Good: People are enjoying the cheapest gas prices since 2009!  According to President Barack Obama, Americans should take advantage of these savings and put them to good use, by suggesting that they put the money into savings or buy something that will still be useful once gas prices start creeping up, such a fuel efficient car or new appliance. Even well-known “gas eaters”, such as sport utility vehicles and trucks, have increased their sales figures, helping to boost the sagging car industry.

The Bad: Downside Of Low Prices At The Pump: Oil field job layoffs.

The Ugly: There will be not only direct hits in the oil & gas fields, but there will also be fallout in the supply chain, such as a vendor that’s business depends on the oil and gas industry. Example: US Steel recently laid off more than 600 workers at a steel tube plant near Cleveland, Ohio, citing the sharply falling oil prices. Plus, members of Congress are hoping gas prices remain low, hoping to use these low prices as an opportunity to increase the gas tax for the first time in more than two decades.

We here at PAOGR expect OPEC to cut production, in turn, helping to send oil prices back up, allowing the economy’s supply and demand scale to soon balance out.