Capitalism and oil companies haven't known each other in years!

I've heard that old saw for years about how low oil prices are bad for the economy but I've yet to hear an even halfway plausible reason for it.

Next time you fuel, look at the sticker on the pump and realize how much extra in tax you are paying both to the Feds and state.

If people only knew the effect of how many different and seemingly non-related jobs depended on the oil industry. I don’t know where the tipping point is but In the healthy economy we’ve been in I’m thinking $60 a barrel is not a bad thing. I also think it’s a crying shame to see all the millions of cubic feet per hour of Natural Gas burning up in flares when the price drops so low that it’s negative $ to sell it.

Most Vehicles should have been running off of propane 20 years ago. Mass produced it would be at a price point to make it viable.

Engines would have lasted forever with very little maintenance.

Me too

because oil companies are companies that operate on risk versus reward. When oil is above 60 the risk is worth it. That means lots of men and women go back to work making 60-100 thousand a year. When oil is below 50 for any length of time they start laying people off. That's millions of people when it happens.

When they go back to work they buy houses boats and lots of toys. When they get laid off they lose everything. Yep they tend to not be great business people. lol the old steak versus bologna

This is the short explanation.

Gas in Caddo Mills seems to always be about a dime cheaper than Rockwall. I will stop at Shell sometimes headed west. You can't get Shell gas for less.

It should be cheaper given how heavily subsidized the oil industry is.

I don't think the price per barrel will be down long.
Once China is no longer contagious it will go back up higher than before the outbreak.

It does make a difference, it can be somewhat regional though. I will give a few examples I personally have seen.

Low oil price drives down the amount of drilling and associated operations. School enrollment declines because people move to where they find work. School drops in enrollment, loses some state funding, receives less tax money, teachers get let go since there is no need for as many at this point. Same for police, less tax dollars, cars get old since they cant afford to buy new ones, policeman and women get let go due to low budget.

Restaurants, hotels, hardware stores etc. start to struggle due to no spending. The local real estate marked goes bad with several houses for sale and no buyers.

It can resonate to non local businesses, we buy 12-14 million dollars worth of gears and crankshafts from a vendor in Michigan each year. When we get short on work, we have no need to make purchases from them.

just like college professors

I like cheap gas! I would not be upset if it was $1.20. Seems fair.

The thing that is kind of unusual at this time is that supply and demand seem to be kicking in for once. In times past, it didn't seem to matter as the "speculators" were driving the market. Enjoy it while you can.