Energy Boom, Can Withstand Price Drop
Energy is on everyone minds this year. The US has produce
more oil this year then the last three years. With so much production oil
prices are starting to drop. Good for the everyday joe, but for the producers,
if the cost per barrel would drop another 20 dollars it could mean some
heartache for oil companies. Many of these companies are medium size, they have
borrowed huge sums of money. This was justified due to the high price of oil a
few months ago. Now that oil dropping, these companies are struggling to find a
ways to pay back the debts . To battle the smaller profits these companies have
developed new way to get to the oil. Helping to increase their profits and
allowing them to keep afloat for now.
As someone who is trying to fill his gas take I want the
lower prices. Thanks to the energy boom
that this country is facing I now have these lower prices. The lower prices
have two sides. One side doesn't make my wallet scream. Will the other side hurt the energy companies , the lower
the prices the harder it will be for them to make a profit. Time will show weather prices can stay stable or will the continue to drop.
This price drop of energy is good for the consumer since less money is wasted at the pump and at home; however, this might actually hurt consumers in the long-term if prices cannot stay stable. If the prices drop further, energy companies have to produce less energy or even shutdown which means there will be less energy for consumers.
ReplyDeleteFor people like us, this price drop is great. None of us actually care if some of those medium sized companies go out of business. As long as there is plenty of gas for us, and it is sold at a cheap price, we'll all be happy. Now if this price drop continues for awhile, then it might start to have an impact on people like us. It might eventually get to the point where it isn't as easy for us to just pull up to a gas station and fill our tank with gas. Hopefully the gas prices will continue to stay low, without getting to the point where too many oil companies have to go out of business.
ReplyDeleteIf the price of oil keeps going down I will get seriously concerned. When oil firms go out of business the supply of oil would go down. This would result in a rise in price. Hopefully the price of oil stays steady so oil companies can stay in business.
ReplyDeleteAs of now this fall in oil price is great for our economy, every individual feels this type of price change. Since people are not spending as much at the pump they will be more inclined to put money other places, a wider distribution on funds would mean good things for the country as a whole. I would be concerned if the price would drop substantially more though, oil companies out of business would only cause problems.
ReplyDeleteIt is quite unfortunate for the mid-sized oil companies who have borrowed large sums of money. Hopefully they are able to come back from it, but if not I'm confident that the very large, established oil companies will be able to supply at an adequate rate.
ReplyDeleteI think it is great the US is finally producing their own oil. We have a substantial amount of oil here, but the regulations are so strict. Oil production is great for the economy. I agree with Joel about concerns over oil prices getting too low and companies going out of business
ReplyDeleteIn my personal opinion I'm glad that oil is going down, because I don't have to spend so much dang money on gas. I hope it keeps going down but only to a price that the oil companies will do fine to stay in business like Joel stated.
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