NationStates

Now, many people, or at least Americans have noticed that recently there are very low gas prices. Today it got in the $1.20's in Michigan with prices close to that (well, $1.30-40) all around the country.

Now, cheap oil (ergo cheap gas) is good for the consumer because of well...cheap gas. The consumer can now buy other things because they no longer need to make such sacrifices when it comes to buying products if gas is cheaper (more money in their wallets to spend---theoretically).

Cons though largely lay with the oil companies. There are so many oil (shale, fracking stuff) companies here in the US and world that oil has flooded the market, which is the main reason for the low prices. Eventually though the number of oil producers will have to decrease because such a surplus of oil producers won't be able to survive. Then...oil prices will rise again.

How do you NSers view the future of the oil market and are there any other obstacles you can see?

https://www.eia.gov/todayinenergy/detail.cfm?id=24532
http://www.bloomberg.com/news/articles/2016-02-08/world-s-largest-energy-trader-sees-a-decade-of-low-oil-prices

EDIT: Iran to flood market with oil? Maybe not... http://blogs.barrons.com/asiastocks/2016/01/18/goldman-iran-wont-flood-markets-with-oil/

Pro- oil is cheap so we can buy American made SUVs again

Con- Everyone's retirement just took a crap
And the environment just got crapped on

Zocra wrote:Now, many people, or at least Americans have noticed that recently there are very low gas prices. Today it got in the $1.20's in Michigan with prices close to that (well, $1.30-40) all around the country.

Now, cheap oil (ergo cheap gas) is good for the consumer because of well...cheap gas. The consumer can now buy other things because they no longer need to make such sacrifices when it comes to buying products if gas is cheaper (more money in their wallets to spend---theoretically).

Cons though largely lay with the oil companies. There are so many oil (shale, fracking stuff) companies here in the US and world that oil has flooded the market, which is the main reason for the low prices. Eventually though the number of oil producers will have to decrease because a lot oil producers won't be able to survive. Then...oil prices will rise again.

How do you NSers view the future of the oil marke and are there any other obstacles you can see?

https://www.eia.gov/todayinenergy/detail.cfm?id=24532
http://www.bloomberg.com/news/articles/2016-02-08/world-s-largest-energy-trader-sees-a-decade-of-low-oil-prices

EDIT: Iran to flood market with oil?...maybe not? http://blogs.barrons.com/asiastocks/2016/01/18/goldman-iran-wont-flood-markets-with-oil/

Personally I hope we move on from being dependent on oil, especially foreign oil.

Cheap oil is a net positive in the U.S. The energy stocks make up like 2% of the market and therefore really can't be pulling down on the rest too much.

Transports should benefit from this, shipping companies benefit from this, consumers benefit from this, any company that uses oil and it's a cost, benefits.

Oil has added 0.6% GDP growth to the U.S. economy, without low oil prices, we'd probably be a in a recession.

I could see oil getting much scarcer in the next 20-30 years, and therefore relying more on alternative energy.

Rutthenia wrote:I could see oil getting much scarcer in the next 20-30 years, and therefore relying more on alternative energy.

Hopefully by then we have flying cars powered by a more renewable energy that will not dry out.

The Republic of American Freedom wrote:

Zocra wrote:Now, many people, or at least Americans have noticed that recently there are very low gas prices. Today it got in the $1.20's in Michigan with prices close to that (well, $1.30-40) all around the country.

Now, cheap oil (ergo cheap gas) is good for the consumer because of well...cheap gas. The consumer can now buy other things because they no longer need to make such sacrifices when it comes to buying products if gas is cheaper (more money in their wallets to spend---theoretically).

Cons though largely lay with the oil companies. There are so many oil (shale, fracking stuff) companies here in the US and world that oil has flooded the market, which is the main reason for the low prices. Eventually though the number of oil producers will have to decrease because a lot oil producers won't be able to survive. Then...oil prices will rise again.

How do you NSers view the future of the oil marke and are there any other obstacles you can see?

https://www.eia.gov/todayinenergy/detail.cfm?id=24532
http://www.bloomberg.com/news/articles/2016-02-08/world-s-largest-energy-trader-sees-a-decade-of-low-oil-prices

EDIT: Iran to flood market with oil?...maybe not? http://blogs.barrons.com/asiastocks/2016/01/18/goldman-iran-wont-flood-markets-with-oil/

Personally I hope we move on from being dependent on oil, especially foreign oil.

The reason oil is so low is because of the American shale boom. American oil production has risen dramatically over the past decade or so and now the U.S. produces the most oil in the world.

The Republic of American Freedom wrote:

Rutthenia wrote:I could see oil getting much scarcer in the next 20-30 years, and therefore relying more on alternative energy.

Hopefully by then we have flying cars powered by a more renewable energy that will not dry out.

Oil is a lasting thing, like coal.

You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.

The Republic of American Freedom wrote:Personally I hope we move on from being dependent on oil, especially foreign oil.

Agreed. I say we should put more funding or at least incentives into creating cheap biofuel.

The con of cheap oil is that everyone forgets about alternative energy research because Oil is Cheap, Dude.

greed and death wrote:Pro- oil is cheap so we can buy American made SUVs again

Con- Everyone's retirement just took a crap
And the environment just got crapped on

Jeep is rather fuel efficient tbh

GreatestBanks wrote:

The Republic of American Freedom wrote:Hopefully by then we have flying cars powered by a more renewable energy that will not dry out.

Oil is a lasting thing, like coal.

You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.

I'm a dreamer not a scientist.

Gauthier wrote:The con of cheap oil is that everyone forgets about alternative energy research because Oil is Cheap, Dude.

Livin' in the moment, the consumer is.

Until gas prices spike up, and he can't pay off anything

The Republic of American Freedom wrote:

GreatestBanks wrote:Oil is a lasting thing, like coal.

You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.

I'm a dreamer not a scientist.

I'm all for renewables and stuff like that, just saying, oil has had a lasting effect on our civilization, for better and for worse.

GreatestBanks wrote:

Gauthier wrote:The con of cheap oil is that everyone forgets about alternative energy research because Oil is Cheap, Dude.

Livin' in the moment, the consumer is.

Until gas prices spike up, and he can't pay off anything

Let's enjoy this GDP-growing moment while it last.

Ultimately, I just want the dropping oil prices to further destroy Russia's economy.

The Republic of American Freedom wrote:

GreatestBanks wrote:Livin' in the moment, the consumer is.

Until gas prices spike up, and he can't pay off anything

Let's enjoy this GDP-growing moment while it last.

Without low oil prices we'd probably be in a recession. Instead of GDP being -0.1% or 0%, it's +0.6%

Stoic Melancholics wrote:Ultimately, I just want the dropping oil prices to further destroy Russia's economy.

This is probably the greatest benefit.

Honestly, what makes things worse is that the government is in the pockets of oil barons and therefore would never do anything to 'hurt' or alter the industry. Sad, Sad, Sad.

GreatestBanks wrote:

The Republic of American Freedom wrote:Let's enjoy this GDP-growing moment while it last.

Without low oil prices we'd probably be in a recession. Instead of GDP being -0.1% or 0%, it's +0.6%

I know that, I'm just paranoid of a repeat of the 1973 and 1979 Oil Crisis.

The Republic of American Freedom wrote:

GreatestBanks wrote:Without low oil prices we'd probably be in a recession. Instead of GDP being -0.1% or 0%, it's +0.6%

I know that, I'm just paranoid of a repeat of the 1973 and 1979 Oil Crisis.

It's coming m8!

You better change your car, you brought the wrong one!

Should've brought the Toyota Prius while you could

GreatestBanks wrote:Cheap oil is a net positive in the U.S. The energy stocks make up like 2% of the market and therefore really can't be pulling down on the rest too much.

Transports should benefit from this, shipping companies benefit from this, consumers benefit from this, any company that uses oil and it's a cost, benefits.

Oil has added 0.6% GDP growth to the U.S. economy, without low oil prices, we'd probably be a in a recession.

But oil futures were securitiezed and used in collateralize debt swaps by the major banks and currently make up 75% of all market capitalization.

greed and death wrote:

GreatestBanks wrote:Cheap oil is a net positive in the U.S. The energy stocks make up like 2% of the market and therefore really can't be pulling down on the rest too much.

Transports should benefit from this, shipping companies benefit from this, consumers benefit from this, any company that uses oil and it's a cost, benefits.

Oil has added 0.6% GDP growth to the U.S. economy, without low oil prices, we'd probably be a in a recession.

But oil futures were securitiezed and used in collateralize debt swaps by the major banks and currently make up 75% of all market capitalization.

The stock market is stupid.

The real economy benefits from low oil prices, but they can only remain so long for so long

GreatestBanks wrote:

The Republic of American Freedom wrote:Hopefully by then we have flying cars powered by a more renewable energy that will not dry out.

Oil is a lasting thing, like coal.

You need oil to transport the stuff to build your flying cars, you need oil to transport the materials for the engine, you need oil to make the mine to get the materials for your car, etc.

I imagine some time ago the argument was 'well, that's all well and good, but you're going to need horses to carry those engines around, horses to get your workers from place to place, and plenty of oil for those lanterns to keep them working'. Not a 100% identical example, but I hope you get the point.

I see the recent oil scare as a positive thing for the country. I see it in the same light I saw the oil crisis in the 70's. US consumers realized how scary it was to be completely dependent on middle eastern oil, and worked to expand our oil infrastructure. That way, when OPEC tried it again a few years ago, our economy wasn't hobbled like they hoped it would have been. Now with the 'peak oil' scare, I think American investors will see that alternative energy isn't just ethical, it's economically viable in the long-term.

I prefer expensive oil, it's why I use coconut oil for all my deep frying