Wednesday, December 3, 2014
As oil prices plunge, wide-ranging effects for consumers and the global economy
http://www.washingtonpost.com/business/economy/as-oil-prices-plunge-wide-ranging-effects-for-consumers-and-the-global-economy/2014/12/01/904984b2-7971-11e4-9a27-6fdbc612bff8_story.html DUE 8 DECEMBER 2014...(ONE OF TWO). How much have oil prices declined in the past 7 months? Why have they declined?? What actions did OPEC take?? What are 3 economic advantages of an oil price decline? What are 3 economic disadvantages of an oil price decline? Predict the future economic impact of symbiotic industries as these price declines affect the macro-economy.
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Since mid-June, oil prices have declined about forty percent and just last week, prices significantly decreased. The Organization of the Petroleum Exporting Countries (OPEC) voted to pump oil at the same rate to continue these low oil prices. The decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. To put these prices differences into perspective, motorists have saved $630 million on gas since mid-June. Three economic advantages for the oil price decline include: 1) for lower-income families, the money saved from cheap oil prices will be put into the economy through buying groceries, clothing, or other things 2) large American companies, such as Delta Air Lines, are saving money. The cheaper the price of jet fuel is, the more money airlines will save. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases, and 3) lowering gasoline prices lowers inflation rates. Three economic disadvantages include: 1) the decrease in oil prices, will approximately reduce annual revenue to oil producers worldwide by $1.5 trillion, 2) it could hurt investment because they run highly off of the petroleum business and 3) oil patch companies are losing anywhere from forty-four percent of the value of their oil. As these prices continue to decline, the future economic impact of symbiotic industries will greatly suffer. While low oil prices are good for some low-income people, other companies are losing money. Things such as investments, which are based off of petroleum businesses will be negatively impacted. Low gas prices may sound like a good thing, but overall, they can negatively impact the macro-economy.
ReplyDeleteThis article is about oil prices that are plunging and resulting in wide range effects for consumers and the global economy. In the past seven months, The price of oil has declined about 40 percent since its peak in mid-June. It plunged last week after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. This therefore is being continued because of the trend and was driven by the weak global economy and the expansion of the United State's energy supply. Many people are wondering how much the oil prices will drop and for how long this will occur. As of right now, everyday, American motorists are saving $630 million on gasoline compared with what they paid at June prices. $230 billion would be given if prices were to stay this low for a year. The three economic advantages of an oil price decline are for the lower-income families that are living on smaller salaries. This would allow them to use money on some of their necessities such as buying groceries, clothing and other staples, rather than purchasing gasoline. Another advantage is for the airline institutions. The article states, "Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview." Another advantage of this would be the result of its effect on inflation. By lowering the prices of gasoline, it lowers the rate of inflation significantly. Although there are many advantages of lowering the price of gasoline, their are some disadvantages as well. One of the disadvantages of lowering the price of oil is that the 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will result in reducing the annual revenue to oil producers worldwide. The result would be 1.5 trillion dollars. Kathy Jones, fixed-income strategist at Charles Schwab, said that while lower oil prices will boost consumer spending, which makes up 68 percent of the U.S. economy, it could also hurt investment, which runs high in the petroleum business. Also, the oil services will lose a lot of their oil. The oil services giant Halliburton has lost 44 percent of its value since July 23. As these prices decline the future of the economic impact of symbiotic industries will continue to undergo a downfall. Although their are many advantages towards lowering the cost of oil/gasoline, there are also multiple important disadvantages that are occurring as well. Yes, the lowering of the cost of oil is good for families that are suffering from low salaries, but there are many companies that are losing money due to this like airline companies. Personally, I believe that this will affect the macro economy negatively.
ReplyDelete“In Saudi Arabia, OPEC’s swing producer, with about 9.7 million barrels of production a day.” Over the past couple of months forty percent of the oil prices has significantly dropped. Oil prices has decreased dramatically because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. They have continued to do this because of the trend and was driven by the weak global economy and the expansion of the United States energy supply. Every day American motorists are saving a total of $630 million on gasoline, compared to what they were paying in June. With the oil prices dropping, there are other consequences that come along with the decline of oil prices. The first economic advantages of having the oil prices so low are that it will help the lower income families that are living on a low income, which would allow them to feed their family freely and for them to buy the needs like; clothes, food, and other things. The second advantage of having gasoline prices drop is that big American companies are saving money. For example, Delta Air Lines are saving tons of money and with cheap fuel airplanes get to fly for cheap. According to the article “Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview.” The third advantage is that lowering gas prices lowers inflation rates. The first economic disadvantage would be the forty percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will reduce annual revenue to oil producers worldwide by a whopping $1.5 trillion. The second disadvantage would be it could hurt investments because they run in only petroleum and oil businesses. The third disadvantage would be that the oil services giant Halliburton has lost forty-four percent of its value. With having the oil prices very low, it will help many poor or low income families. Indeed it’s a good thing to have lower prices and save money, but for others not so much. They need the prices to be high and investments are being lost. I think it will affect negatively.
ReplyDeleteThe decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. To put these prices differences into perspective, motorists have saved $630 million on gas since mid-June. Three economic advantages for the oil price decline include: 1) for lower-income families, the money saved from cheap oil prices will be put into the economy through buying groceries, clothing, or other things 2) large American companies, such as Delta Air Lines, are saving money. The cheaper the price of jet fuel is, the more money airlines will save. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases, and 3) lowering gasoline prices lowers inflation rates. One of the disadvantages of lowering the price of oil is that the 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will result in reducing the annual revenue to oil providers worldwide. The result would be 1.5 trillion dollars. Also, the oil services will lose a lot of their oil. The oil services giant Halliburton has lost 44 percent of its value since July 23. As these prices decline the future of the economic impact of symbiotic industries will continue to undergo a downfall. Although their are many advantages towards lowering the cost of oil/gasoline, there are also multiple important disadvantages that are occurring as well.
ReplyDeleteThe percent at which the prices have declined by is 40% in he last 7 months. Their dwindling away because of fracking and other methods America has been using to collect cheep oil. The steps that OPEC has taken were to opted to maintain output instead of paring back to prop up prices. The OPEC 's swing producer has decided to let prices slide in turn of trying to fight for market shares. 3 Good economic advantages of the oil decline is it'll assist expansionary fiscal policy, lower income families get breaks, and America's economy will increase. 3 disadvantages are the clean water supply is dwindling, many people are losing jobs, and other contries are getting fustrated.
ReplyDeleteOver the past couple of months forty percent of the oil prices have significantly decreased. The oil prices have dropped dramatically because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate.The decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. For example motorists have been saving a total of $630 million on gas, compared to what they were paying in June. With the price of oil dropping dramatically there are many significant consequences.Some advantages of having lower oil prices is that for lower-income families, the money saved from cheap oil prices will be put into the economy through buying groceries, clothing, and other goods and services. Secondly large American companies, such as Delta Air Lines, are saving money. The cheaper the price of jet fuel is, the more money airlines will save according to the article. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases.The third advantage is that lowering gas prices lowers inflation rates. Three economic disadvantages are the lowering prices of oil and the 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will result in reducing the annual revenue to oil producers worldwide. The second disadvantage is that it could hurt investment because they run highly off of the petroleum business. and the third disadvantage is that oil patch companies are losing anywhere from forty-four percent of the value of their oil.While low oil prices are good for low-income families, companies are losing money. Low gas prices may be a good thing, but overall, they can negatively impact the economy.
ReplyDeleteOver the last seven months, the price of oil has decreased by 40 percent, and has lowered even more after Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate. Prices have declined as a result of a larger amount of oil being pumped out due to fracking and other strategies. Fracking consist of drilling and injecting fluid into the ground in order to break past shale rock and extract natural gas. Although this is producing a higher rate of oil, it is ruining the environment by damaging our water sources. OPEC decided to maintain output instead of slowing down production and rising prices. Saudi Arabia, OPEC's main producer, has adjusted to the higher level of output but fears that production will grow outside of OPEC reducing the global market to a smaller share. The global oil demand is about 94 million barrels a day. If this were to increase, it could slow down or stop the growth in oil supplies. One of the economic advantages of an oil price decline is the fact that it will increase consumer spending in other aspects, as American motorist are saving $630 million compared to what they paid in June. This will also be an advantage for U.S. domestic energy supplies and big American companies such as airplane companies who spend large amounts on gas. Economic disadvantages however include the effect on the environment, the loss of investment by oil patch companies as 44 percent of the value of their oil is lost, and the fact that it hurts the economy as inflation rates have risen to 8 percent. The economic impact of symbiotic industries includes much suffering if this were to continue. On a larger level investments and the sustainability of our environment is being lost. While these low oil prices are appealing now, it might come back to bite the United States in the ass.
ReplyDeleteOil prices have dropped 40 percent in the past seven months due to OPEC deciding to pump oil at a faster rate through fracking and destroying our environment. American motorists, however, have saved $630 million in comparison to what they were paying in mid June. Advantages of low oil and gas prices include American's saving money and putting in other places of the economy like groceries or clothing. The cost of travel will decline slightly with oil and gas being at a low price. Finally, declining oil prices will help persuade the European and Japanese central banks to implement further monetary easing as prices remain subdued.Sounds great for us, right? Who needs the environment anyway? Well the disadvantages also came with such low gas prices. OPEC employees would lose $590 billion in revenue annually if prices stayed this way. Not only will OPEC will be receiving the blow, but oil producers world wide would be losing $1.5 trillion annually. Russia and Iran would be in deeper holes than they are in now with Russia having extreme inflation as it is and Iran having oil as its number one export. The United States and Venezuela have been in the losers bracket too with companies like BP losing a quarter of revenue already in just seven months.
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ReplyDeleteThe price of oil has declined 40% since mid-June. Prices are lowering because although demand was lower than in summer, they continued pumping at the same rate. Now demand has gone up because of the lower prices, but at what point will gas have a lower demand? With an easier method of pumping oil, companies are producing massive amounts of crude oil. OPEC has voted to continue drilling at the same pace. One advantage to a decline in oil prices is that there will be more disposable income. With more money in citizens' pockets, they can spend on things to benefit the economy. People that would normally be living paycheck to paycheck can now put money towards their wants. Another advantage of lower oil prices is that corporations can save a big portion of their budget that would normally be dedicated to higher oil prices. Big airlines, shipping, and everyday bus use will decrease their cost of doing business. This will benefit everyday citizens, and increase demand for big ticket products. Lower oil prices will minimize inflation. The value of things will balance out now that transportation fees are not a big part of spending. There are some disadvantages to low oil prices as well. With cheap gas, the demand for green energy declines. No longer will the focus be on what is right for the environment, but what is right for our paychecks. Another disadvantage is that oil companies such as BP will lose money. While this is not a major concern for most Americans, it will effect many people with jobs involving big oil companies. Iran and Russia will be hurt by low oil prices because it accounts for the majority of their export revenue will benefit from lower resource prices. This will negatively impact symbiotic industries because their will be no economic stimulus to buy eco friendly products. It is already more expensive to buy clean energy products, and with the gas prices further lowering, that demand decreases even more. This will benefit the macro economy. Fuel expenses apply to any product. Whether it is shipping, advertising, or production, gas expenses are necessary. Gas is not something that will go out of style because it has become a necessity in our everyday lives. We all use gas in some way every single day. With lower prices, people will buy more big ticket items, and in turn, stimulate the macro economy. In conclusion, lower oil prices will stimulate the economy.
ReplyDeleteThe price of oil has declined about 40 percent since its peak in mid-June and plunged last week after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. They have continued to do this because of the trend and was driven by the weak global economy and the expansion of the United States energy supply. he Organization of the Petroleum Exporting Countries (OPEC) voted to pump oil at the same rate to continue these low oil prices. The three economic advantages of an oil price decline are for the lower-income families that are living on smaller salaries. This would allow them to use money on some of their necessities such as buying groceries, clothing and other staples, rather than purchasing gasoline. Another advantage is for the airline institutions. The article states, "Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview." Another advantage of this would be the result of its effect on inflation. By lowering the prices of gasoline, it lowers the rate of inflation significantly. Three economic disadvantages include: 1) the decrease in oil prices, will approximately reduce annual revenue to oil producers worldwide by $1.5 trillion, 2) it could hurt investment because they run highly off of the petroleum business and 3) oil patch companies are losing anywhere from forty-four percent of the value of their oil. The future economic impact of symbiotic industries will greatly suffer. - SAm MOHAMMED
ReplyDeleteThe consequences of the decline in oil prices have staggering affects on the economy of the U.S. and countries worldwide. Recently, there was a 40% drop in the prices of crude oil just in the past five months, since its peak in mid-June. The drop has continued for the prices had plunged just last week. The Organization of the Petroleum Exporting Countries (OPEC) has voted to continue the rate of pumping, which continued a trend by a weak global economy and is expanding the U.S. domestic energy supplies. Because the prospect of low oil prices has grown, the OPEC opted to maintain the output instead of acting to increase the prices once again. As most of the companies and people are wondering exactly how low the prices are are going to continue to fall. Among all of the commotion for the drop in prices for oil, there are also advantages. With the drop, the lower-income households can use the money not spent on gas for buying groceries, clothing and other supplies. Bigger companies are better off, for example Delta Air has saved $40 million on jet fuel so far for every penny that the prices decline. Also, the prices reduce inflation. The disadvantages include the annual revenues for OPEC will decline by a whopping $590 billion, and the annual revenue for oil producers will decline by $1.5 trillion. The oil services have lost 44% of its value and Continental Resources has lost half of its value. It is also noted that though the prices boost consumer spending, it could also hurt investment which runs high in the petroleum business. Often, the public takes advantage of the decline in gas and oil and we embrace it for the time we have, but in the end the prices hurt the economy and other countries. For the future, the prices will continue to decrease to such an amount, eventually they will have to increase once more. This will aid the macro-economy.
ReplyDeleteIn the past seven months, the price of oil has decreased about 40% since the peak in mid-June. After the Organization of the Petroleum Exporting Countries voted to pump at the same rate, it plunged. This decision to continue to pump the oil at the same rate will continue to occur because of the weak economy and from the expansion of the United State’s energy supply. Because of the low oil prices, motorists have saved about $630 million since mid-June. Three economic advantages of an oil price decline are: 1) the money saved could be used by families for other necessities, such as groceries or clothes, 2) the low oil prices are causing large American companies to save money, such as Delta Air Lines. According to the article “Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview.” and 3) the lowered oil prices lowers the inflation rate. Three economic disadvantages include: 1) the decrease in oil prices will reduce annual revenue to oil producers worldwide by $1.5 trillion, 2) the decrease could hurt investments if they run highly off of a petroleum-based business, and 3) oil patch industries are losing anywhere from 44% of the value of their oil. With the oil prices so low, it can help many families that are on strict budgets and cannot really spend a lot of extra money, but companies are losing money. Businesses with oil are getting affected negatively and overall the low prices could ultimately hurt the macro-economy.
ReplyDeleteIn the past seven months, The price of oil has declined about 40% since its peak in mid-June. Just last week, the prices once more, plunged after the Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate. Because the prospect of low oil prices has grown, OPEC opted to maintain the output rather than doing something to get gas prices as high as they once were. The falling prices of gasoline is advantageous in several ways, Primarily, having the oil prices so low helps the lower income families because it therefore allows them to spend money on other things that they were perhaps pinching pennies on like more groceries and buying essential things that they couldn't buy freely before such as clothes. Another advantage of having gasoline prices drop is that big American companies are saving money like how Delta airlines is saving money on fuel and thus, people get to fly for less money. Lastly, this drop in gas prices helps lower inflation rates. There are also Disadvantages of course. Oil companies are losing money because of the lowere prices in gasoline. Furthermore, the demand for cleaner and greener ways to save the environment from pollution of gasoline will decrease because with lower prices, people won't worry about the environment as much because their focus is now on how much they are saving by using the cheap gas. Therefore, or environment will suffer more from pollution now that it is more affordable. investments and the sustainability of our environment is also being lost. Although these low prices of gas look amazing right now to us, the effects that it may have in the long run won't be as pretty.
ReplyDeleteOil prices have declined in the past seven months about 40%. They have declined because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. That continued a trend driven by a weak global economy and expanding U.S. domestic energy supplies. OPEC’s swing producer, with about 9.7 million barrels of production a day, has usually adjusted its output to moderate lurches in oil prices. But the kingdom has grown worried that production will continue to grow outside OPEC, reducing the cartel to a smaller and smaller share of the global market. Three economic advantages of an oil price are one it could help our economy grow, two large American companies, such as Delta Air Lines are able save their money. Three citizens can save up money for other things they might need to save up. Just like advantages there are disadvantages three disadvantages are one fraking can cause us to not have any fresh water. Also the price of fresh water will increase. Three pollution will be a big problem since people will keep driving causing global warming. Lower prices might increase the economy but we will start to see the negative side of having cheap oil which could affect the macroeconomy.
ReplyDeleteOil prices have dropped significantly in the past 7 months, by about 40%. In the past week, OPEC has decided to keep up with pumping oil at the same rate causing prices to drop even more. The reason that the prices for oil have dropped drastically is due to this process called fracking where they pump chemicals into the ground to push out oil. Three advantages are that lower income families are able to have a bit more money to save/spend on things they wouldn't usually be able to purchase, also with people buying more things, the American economy will get better because businesses will get more business from the consumer. Another advantage is that it would be assisting expansionary fiscal policy. Three disadvantages to having such low oil prices is that the oil producers will lose $1.5 trillion annually, oil services have lost up to 44% of its value and OPEC employees will lose $590 billion in revenue if this keeps going. Not only will this affect the macro-economy negatively but it also affects the environment negatively too.
ReplyDeleteOver the past couple of months forty percent of the oil prices have significantly decreased. The oil prices have dropped dramatically because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate.Fracking consist of drilling and injecting fluid into the ground in order to break past shale rock and extract natural gas. Although this is producing a higher rate of oil, it is ruining the environment by damaging our water sources. OPEC decided to maintain output instead of slowing down production and rising prices. Saudi Arabia, OPEC's main producer, has adjusted to the higher level of output but fears that production will grow outside of OPEC reducing the global market to a smaller share. The first economic advantages of having the oil prices so low are that it will help the lower income families that are living on a low income, which would allow them to feed their family freely and for them to buy the needs like; clothes, food, and other things. The second advantage of having gasoline prices drop is that big American companies are saving money. For example, Delta Air Lines are saving tons of money and with cheap fuel airplanes get to fly for cheap. According to the article “Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview.” The third advantage is that lowering gas prices lowers inflation rates. There are some disadvantages to low oil prices as well. With cheap gas, the demand for green energy declines. No longer will the focus be on what is right for the environment, but what is right for our paychecks. Another disadvantage is that oil companies such as BP will lose money. While this is not a major concern for most Americans, it will effect many people with jobs involving big oil companies. Iran and Russia will be hurt by low oil prices because it accounts for the majority of their export revenue will benefit from lower resource prices. This will negatively impact symbiotic industries because their will be no economic stimulus to buy eco friendly products. It is already more expensive to buy clean energy products, and with the gas prices further lowering, that demand decreases even more.
ReplyDeleteOil prices have declined in the past seven months about 40%. They have declined because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. The reason that the prices for oil have dropped drastically is due to this process called fracking where they pump chemicals into the ground to push out oil. Some advantages of an oil price decline are as the following : 1)Will help the lower income families by allowing them to feed their family freely and meet other survival needs such as a roof and clothes and other things. 2)lowering gas prices also lowers inflation rates 3)large American companies, such as Delta Air Lines, are saving money. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases. There are also disadvantages when it comes to oil price decline. 1)OPEC employees will lose $590 billion in revenue if this keeps going 2)the oil producers will lose $1.5 trillion annually 3)oil services have lost up to 44% of its value . Indeed it's good that it's helping those that are barely surviving under low income rates but at the same time it has a negative effect on many companies that are losing investments and would cause a negative effect in the macro economy in my opinion.
ReplyDeleteOver the past couple of months, forty percent of the oil prices have significantly dropped. They have significantly dropped because the Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate. Companies have begun to use an oil retrieval process called fracking, which consists of drilling and injecting fluid into the ground in order to break past shale rock and extract natural gas. Although we are now have a large oil supply, it comes at a price. Our water supplies are being damaged because fracking put harmful chemicals into the ground, as a means to extract the natural gas. OPEC has chosen to maintain its steady output of oil than slow down production and raise prices. Saudi Arabia, OPEC’s main producer, has adjusted to the higher level of output but fears that production will grow outside of OPEC reducing the global market to a smaller share. The global oil demand is about 94 million barrels a day. If this were to increase, it could slow down or stop the growth in oil supplies. One economic advantage of oil prices decline is that it will increase consumer spending. Another is that for low income families, they will be able to go out more because gas prices are low. Also, American’s are spending $630 million less than they were in June due to these lower prices. And another advantage is that big companies such as Delta Airlines, are saving tons of money with cheap fuel prices. However, there are some disadvantages to these low gasoline prices. We also have to consider our health, because fracking is dangerous to our environment. Companies who invested in oil patch companies lost 44% of their value. Also, inflation rates have risen eight percent. The economic impact of symbiotic industries includes a lot of suffering if these prices continue and the loss of interest towards eco-friendly businesses.
ReplyDeleteAccording to the article, oil prices have declined 40% in the past seven months. The Organization of the Petroleum Exporting Countries voted on to keep pumping oil at the same rate to continue on these low prices. The three economic advantages of an oil price decline are for the lower-income families that are living on small salaries. This can allow them to use the money on other necessities such as buying groceries, clothing and other stuff. Another advantage is for the airline institutions. according to the article, Every penny the price of jet fuel declines means $40 million in savings for major Air Line companies, delta air lines chief executive said in a recent CBS interview. Another advantage of this would be the result of its effect on inflation. By lowering the prices of gasoline, it can lower the rate of inflation.The first economic disadvantage was the 40% percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will reduce the annual revenue of oil producers worldwide by $1.5 trillion. The second disadvantage would be it can hurt investments because they run only on petroleum and oil businesses. The third disadvantage is that the oil service Halliburton has lost 44% of its value. I predict that the economy is most likely to grow with the cheap oil but in the cost of a clean environment as thing such as clean water is going to become scarce.
ReplyDeleteThe decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. For example motorists have been saving a total of $630 million on gas, compared to what they were paying in June. With the price of oil dropping dramatically there are many significant consequences.Some advantages of having lower oil prices is that for lower-income families, the money saved from cheap oil prices will be put into the economy through buying groceries, clothing, and other goods and services. Secondly large American companies, such as Delta Air Lines, are saving money. The cheaper the price of jet fuel is, the more money airlines will save according to the article. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases.The third advantage is that lowering gas prices lowers inflation rates. Three economic disadvantages are the lowering prices of oil and the 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will result in reducing the annual revenue to oil producers worldwide. The second disadvantage is that it could hurt investment because they run highly off of the petroleum business. and the third disadvantage is that oil patch companies are losing anywhere from forty-four percent of the value of their oil.While low oil prices are good for low-income families, companies are losing money. Low gas prices may be a good thing, but overall, they can negatively impact the economy.
ReplyDeleteOPEC voted to continue pumping at the same rate, because of this oil prices have dropped 40% in the last couple months. Due to a process known as fracking where oil is retrieved by using chemicals that are contaminating our water supply. In the years to come, fresh water will start becoming expensive and harder to come by. The advantages that come with the cut in gas prices are, 1. lower income families will have extra money for the basic essential living needs,2. consumer spending will increase which is good for the economy, and 3.businesses will be making more revenue. Disadvantages include 1.the loss of health because fracking is not good for the environment, 2.the loss of support from eco-friendly businesses,3. and inflation rates rising. Even though the numbers look good now. Their long term affects are not worth it. Overall it will negatively affect the macro-economy.
ReplyDeleteOn Monday, the average U.S. price for a gallon of regular-grade gasoline was $2.77, according to AAA, which projects that prices could drop by an additional 10 to 20 cents. Oil has declined about 40 percent since its peak in mid-June and went even further down last week when the Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate. That continued a trend driven by a weak global economy and expanding U.S. domestic energy supplies. Some advantages of oil prices going down are that we have cheaper gas. American motorists are saving $630 million on gasoline compared with what they paid at June prices, and they would get a $230 billion windfall if prices were to stay this low for a year. So now we have more money. Lowering gas prices also lowers inflation. It also means we will increase spending since people will be more inclined to drive because gas is so cheap. The downside however is that companies are suffering. The oil services giant Halliburton has lost 44 percent of its value since July 23. Heavily indebted Continental Resources, a huge shale oil producer in North Dakota’s Bakken region, has lost half its value since Aug. 29. Even BP, a big, integrated firm, has lost a quarter of its value in just the past few months. And while lower oil prices will boost consumer spending, which makes up 68 percent of the U.S. economy, it could also hurt investment, which runs high in the petroleum business. She also noted that oil and gas companies account for 15 percent of the Barclays U.S. high-yield index, double what it was a few years ago. Honestly this happens almost every year, all thats gonna happen is that people will love gas prices, itll stay down because of elections, and as soon as elections are over everyone will be riding bicycles. Gas will be 3 something and no one will be driving, the US is as predictable as the weather.
ReplyDeleteThe price of oil has decreased to about 40 percent since its peak in mid june and plunged last week. This decline has happened because the OPEC countries voted to continue to pump at the same rate. This continued a trend driven by a weak global economy and expanding U.S domestic supplies. Three economic advantages of an oil price decline is that lower income households can use the money they saved on things like groceries, clothing etc. Big American companies benefit. For example, every penny the price if jet fuel declines means savings of 40 millions for Delta Air lines. It also lowers inflation. Three disadvantages are that the annual revenue of OPEC members would shrink by $510 billion, money will instead stay within the borders of the world's biggest oil importers, lec by the united states, china and japan. The 40 percent drop in price of international benchmark Brent grade crude oil over the past five months will reduce annual revenue to oil producers worldwide by 1.5 trillion. It caused up to more than 8 percent inflation in Russia. This is good for consumers but will negatively effect macroeconomics because of the issues it will cause world wide.
ReplyDeleteThe price of oil has declined about 40 percent since its peak in mid-June and plunged last week after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate, and it is because of fracking that they are declining. The decision of pumping oil at the same time will continue due to the weak global economy and the expansion of the United State’s energy supply. Three economic advantages for the oil price decline include: money wil be saved from cheap oil prices and will be put into the economy through buying groceries, clothing, or other things. Large American companies, such as Delta Air Lines, are saving money. The cheaper the price of jet fuel is, the more money airlines will save. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases, and lowering gasoline prices lowers inflation rates.Three disadvantages will obviously be the decrease in the amount of revenue oil producers make, it will hurt investment because they run highly off of the petroleum business, and oil patch companies are losing anywhere from forty-four percent of the value of their oil.The economic impact to these symbiotic companies will be more negative than anything. They will have a huge loss of both investments and profit as a whole due to the cheap prices that is convenient for the rest of working and moving people.
ReplyDeleteOver the past couple of months forty percent of the oil prices has significantly dropped. Oil prices have decreased dramatically because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. They have continued to do this because they were driven by the weak global economy and the expansion of the United States energy supply. The first economic advantages of having the oil prices lower is that it will help the lower income families, which would allow them to feed their family freely and for them to buy basic needs like; clothes, food, and other things. The second advantage of having gasoline prices drop is that big American companies are saving money. The third advantage is that lower gas prices lowers inflation rates. The first economic disadvantage would be the forty percent drop in the price of the international benchmark Brent-grade crude oil over the past five months, this will reduce annual revenue to oil producers worldwide by $1.5 trillion. The second disadvantage would be it could hurt investments because they run in only petroleum and oil businesses. The third disadvantage would be that the oil services Halliburton has lost forty-four percent of its value. It’s a good thing to have lower prices and save money, but for others not so much. They need the prices to be high and investments are being lost. I think it will affect negatively.
ReplyDeleteAccording to the article since mid June oil prices have declined by a 40 percent in the past seven months.The oil prices have decreased in the last week after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. This allowed OPEC to trend a global weak and be able too expand U.S domestic energy supply.Due to the prospect of low oil prices has grown, the OPEC decided to uphold the output instead of acting to increase the prices again. The Majority of the companies and people are curious to know exactly how low the prices are are going to decline. With all of the commotion for the decrease in prices for oil, there are also advantages such as, benefits for lower income families the money they have can be invested in to clothes food ect to help the economy run smoothly.Also low gasoline prices lowers the chance of inflation.Lastly, big cooperate companies are putting their money aside to help benefit their company a prime example would be delta air the article states this projected to have 40million for every penny the gas decreases.All in all with advantages third are also disadvantages as we'll such as the detriment it can due to investment as we'll as the 1.5 Trillion revenue that would have to be reduced due to oils producers nation wide and finally oil patch companies contained to suffer because their loosing 44 percent of their value as the prices decline.From an economic stand point although low gas prices may sound good now it can be very detrimental to the economy and negatively impact the macro economy due to lower oil prices may seem good and be helping lower income families it is effecting important cooperations loosing investment and such.
ReplyDeleteOil prices have declined by about 1.5 trillion over several months. This is due to the losses of Russia because the value of their Ruble crumbled, Iran because their budget heavily relies on oil, Venezuela because of their dwindling oil revenue, and the United States because of the oil patch. The OPEC opted to maintain output. Three advantages of the decline are the helping of lower income families, American companies saving money, and lower inflation rates. Three disadvantages are the reducing of the annual revenue by 1.5 trillion, the hurting of investments, and oil patch companies losing an average of forty-five percent of their value. I predict the economy will increase from these cheap prices because it encourages consumers to spend more, and often, which is good.
ReplyDeleteThe price of oil has decreased to about 40 percent since its peak in mid june and plunged last week. They have declined because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. The reason that the prices for oil have dropped drastically is due to this process called fracking where they pump chemicals into the ground to push out oil.3 economic advantages of an oil price decline 1: it will help the lower income families that are living on a low income, which would allow them to feed their family freely and for them to buy the needs like; clothes, food, and other things.2: big American companies are saving money. For example, Delta Air Lines are saving tons of money and with cheap fuel airplanes get to fly for cheap. According to the article “Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview.” 3: lowering gas prices lowers inflation rates. 3 economic disadvantages of an oil price declinethe oil is producers will lose $1.5 trillion annually, oil services have lost up to 44% of its value and OPEC employees will lose $590 billion in revenue if this keeps going.the future economic impact of symbiotic industries as these price declines affect the macro-economy because other companies are losing money. Things like investments, which are based off of petroleum businesses will be negatively impacted. Low gas prices may sound like a good thing, but overall, they can negatively impact the macro-economy.
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ReplyDeleteThe price of oil has declined about 40 percent since its peak in mid-June and plunged last week after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. That continued a trend driven by a weak global economy and expanding U.S. domestic energy supplies. An advantage to the plunging price is economic growth. Lower prices on gas means consumers, which make up 68% of the economy, have more money to use in other aspects of the economy. This especially boots the auto industry as more people will buy cars if they know they pay less for gas. Another advantage to this is the morality of increasing Iran's output and making it a wealthier nation. This would offer its people more commodities as well as better living standards. Lastly, price decreases in oil are an advantage due to decrease inflation. This is an example of supply-side economics. These advantages however cannot outweigh the disadvantages that come hand-in-hand with them. Oil prices dropping also negatively affects investments which run high in the petroleum business. High yield means more highly leveraged, but fixed-income strategist can't predict what will happen with oil prices, just that something will. There is concern surrounding this drop. Although Iran sees an advantage of pumping out more oil and receiving such profits, they may earn far more money than they should. In other words, if Iran becomes who the US primarily depends on for oil, and will pay high dollars for it, they may become a more powerful nation and use this income for nuclear weapons to attack other nations. Another negative outcome would be oil patch companies facing a 44% of loss in pay parallel to the loss of oil value. The long term effects surrounding this drop in prices will negatively impact the US economy and furthermore world relationships and trade. It is still to be decided whether or not the negative aspects outweigh the benefits, but for our own sake we hope for the latter.
ReplyDeleteIn the past seven months oil prices has decreased 40%. This is because OPEC voted to pump oil at the same rate to continue these low oil prices. The decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. Economic advantages may include : consumers will benefit more from spending less at the pump , cheaper oil means lower gasoline prices, giving households more money to spend on other things such as food, clothing and may utility bills . The price drop could also spur people to start using more oil and bigger cars and SUVs could make a comeback, which may be beneficial to car dealerships.
ReplyDeleteDisadvantages : oil-producing states like Texas and North Dakota are likely to see a drop in revenues and economic activity, also reduce economic
growth, reduce global trade due to higher transportation costs, reduce corporate profits
So as the price of oil keeps falling, some US producers may become unprofitable and go out of business. The result? Oil prices will stabilize and OPEC maintains its market share.
In the last seven months, oil prices have declined by 40 percent. The reason why oil prices continue to decline at an alarming rate is because OPEC decided to keep pumping petroleum at the same rate. Luckily, this fall in prices is happening during the holiday season, and Americans are saving an average of 230 million dollars on gas. On Monday December 1st, the average price of gas nationwide (regular unleaded) was around $2.77, which is significantly low. With these low oil prices, there are some economic advatages that present themselves. For example, people can spend less on gas and purchase more groceries and other things, which in the long run is good for the economy. (As the gas prices decline, consumer spending in other areas should rise immensely) Big companies such as delta Airlines are also saving money with these low oil prices. A third advantage would be lower inflation as well. Some economic disadvantages are, that American oil companies are losing business such as Halliburton, BP has also lost a good percentage of its value. In the future, interdependent industries might not be as successful for a number of reasons. The most obvious reason is that nothing lasts forever. The oil prices may be low now, but sooner than later they will rise again, and the global economy will be affected by it again. The only way that symbiotic industries will survive is if each member of the relationship plays it's part in supplementing what the other side needs. These low oil prices are lovely though.
ReplyDeleteIn the past 7 months oil prices have declined about 40 percent since mid-June. They have declined so steadily because of the rate that OPEC has been pumping the oil at. The actions have been taken on a weak economy and expanding U.S. Domestic energy supplies. Three advantages to oil price decline are the average American is saving about $630 million in gasoline, the price of jet fuel is declining which means more people will travel, and it can help to lower inflation. Three disadvantages would be some oil services has lost about 44 percent in value, this could also start a high demand for oil that is not quite available, and it could possibly halt the growth in global oil supplies. In the near future, the prices will most likely stay the same. Keeping the economy pretty steady in that area. Oil prices are know to stay steady for a few years before changing. So for the next few years, the oil prices will not have a negative impact on the economy.
ReplyDeleteIn the last 7 month the price of oil has drop to about 40 percent. Gas prices has dropped because the organizations of the petroleum exporting countries continue to pump at the same rate. OPEC has reduce the cartel to a smaller and smaller share of the global market. Three economic advantages of oil prices declining is: money that is not spent on gas can help low-income families be able to buy groceries, clothing, and other things they need. Big American companies like Delta Air Lines are able to save millions of dollars. Falling oil prices can also lower inflation. Three economic disadvantages of oil prices declining is: it could slow down or halt the growth in global oil supplies. Projects like Canada's oil sands could be curtailed or postponed. It will also reduce annual revenue to oil producers worldwide. The lowering of oil prices is good for many industries, but many industries are suffering from the lost of money. At the end the economy will be hurt by this all.
ReplyDeleteOil prices are a tricky thing to decipher if you do not know the repercussions. Oil prices have dropped considerably in the last three months. When you think about the lower prices of oil you have to consider tinstaafl. You cannot lower oil prices and expect nothing to be affected by it. The OPEC knew exactly what they were doing but in this world money rules everything. They are going to lower oil prices and let someone else deal with the problems that come afterwards. Lowering oil prices helps lower income families get what they need including transportation if the opportunity presents itself, as well as providing more funds to focus on foot and clothing. Although fracking to get more oil cause the contamination of the water supply. Low oil helps the economy somewhat but I think the impacts will be greater in the years to come.
ReplyDeleteThe price of oil has decreased by 40% in the last several months, due to a more cost effective method of getting oil, named fracking. OPEC has agreed to continue pumping oil at the same rate. One economic advantage of low oil prices is that airlines will save millions of dollars on jet fuel, this may even lead to cheaper plane tickets. Another advantage is that decreasing oil prices lowers inflation, which will let people be able to buy more for their dollar. An additional disadvantage is that motorists are able to save millions of dollars, which they can spend on other things. A disadvantage is that the global economy will decrease to around one percent. Another disadvantage is that annual revenue to oil producers all around the world would decrease dramatically. An additional disadvantage is that countries whose economies depend on exporting oil will suffer. I believe the future impact will negatively effect the macroeconomies because of the numerous ecological effects of fracking and low oil prices do not help everyone. Lots of companies are losing money and may have to fire employees.
ReplyDeleteOver the past few months there has been a significant decline in oil prices. The price for oil has dropped around forty percent last week. The Organization of the Petroleum Exporting Countries (OPEC) has voted to keep pumping oil at the same rate in order to keep the price low. OPEC continued to do this because of the trend and they were driven to by the weak global economy and the expansion of the United States’ energy supply. The three economic advantages of declining oil prices include: 1) Large American companies, such as Delta Air Lines, are saving money; according to a CBS interview, Delta Air Lines saves around $40 million for every penny the fuel decreases; 2) Lower income-families are saving lots of money from cheap oil prices. Their money saved could put into the economy by buying more groceries, clothing, or other products or services; 3) last, cheaper gasoline prices are lowering inflation rates. Even though, there are some great economic advantages, there are some economic disadvantages by lowering gas prices which includes: 1) reducing oil prices will reduce the annual revenue to oil producer worldwide approximately by $1.5 trillion. 2) Oil patch companies are losing up forty-four percent of the value of their oil, and 3) a drop in oil prices could hurt investments because investment are run highly off of the petroleum business. As the oil prices continue to go down, many poor or low-income families will have more money to spend on the economy; however, many companies are losing money which has a negative impact on the macro economy.
ReplyDeleteIn the past 7 months, oil prices have declined by 40 percent. They've declined because OPEC has decided to continue pumping oil at the same rate. Fracking us the reason why oil prices have dropped so drastically. That continued a trend driven by a weak global economy and expanding U.S. domestic energy supplies. 3 economic advantages of an oil price decline are: 1)Every day, American motorists are saving $630 million on gasoline compared with what they paid at June prices, and they would get a $230 billion windfall if prices were to stay this low for a year. The vast majority of that will flow into the economy, with lower-income households living on tight budgets likely to use money not otherwise spent on gas to buy groceries, clothing and other staples. 2) Big American companies are saving more money now. 3) Lowered gas prices lowers inflation. 3 economic disadvantages of an oil price decline are: 1) The 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will reduce annual revenue to oil producers worldwide by a whopping $1.5 trillion. 2) "In the United States, there are losers, too — mostly in the oil patch. The oil services giant Halliburton has lost 44 percent of its value since July 23. Heavily indebted Continental Resources, a huge shale oil producer in North Dakota’s Bakken region, has lost half its value since Aug. 29. Even BP, a big, integrated firm, has lost a quarter of its value in just the past few months." 3) reduces global trade and corporate profits.
ReplyDeleteThis article is about how much oil prices can affect the economies all around the world. According to washingtonpost.com, tumbling oil prices are draining hundreds of billions of dollars from the coffers of oil-rich exporters and oil companies and injecting a much-needed boost for ailing economies in Europe and Japan — and for American consumers at the start of the peak shopping season. Since in the of middle of June, the price of oil declined at approximately about 40 percent and recently plunged last week. Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate, resulted in a trend that expands the U.S. domestic energy supplies, driven by a weak global economy. Three economic advantages contributed to oil prices declining are that 1) Every day, American motorists are saving $630 million on gasoline compared with what they paid at June prices, and they would get a $230 billion windfall if prices were to stay this low for a year. 2) Lower-income households can rather spend their money on groceries, clothing and other staples rather than high-priced gasoline, and big American companies are better off, too, every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview. 3) Declined gas prices lower the inflation rates of the U.S. economy. Three economic disadvantages are, 1) It affects investment because they run highly off of the petroleum business, 2) Oil patch companies are losing anywhere from forty-four percent of the value of their oil. 3) The decrease in oil prices, will approximately reduce annual revenue to oil producers worldwide by $1.5 trillion. Even though low oil prices may help the low-income households in purchasing other goods, it still affect the big companies greatly, not to mention the process of fracking, also called “hydraulic fracturing,” is a destructive process that corporations like Halliburton, BP and ExxonMobil use to extract natural gas and oil from rock that lies deep underground, according to foodandwaterwatch.org. Low gas prices not only influence the economy but also the well-being of the citizens whereas the fresh water is now contaminated with toxics and chemicals from the ground to produce more oil.
ReplyDeleteIn the past seven months (since about last June), oil prices have been declining dramatically- a staggering 40%. The cause for this rapid declination in oil price is OPEC (Organization of the Petroleum Exporting Countries). OPEC had voted to continue to pump at the same rate causing a trend driven by a weak global economy and expanding U.S. domestic energy supplies. Three economic advantages of an oil price decline are the fact that it will lower inflation, it will spur consumer spending, and persuading the European and Japanese central banks to implement further monetary easing as prices remain subdued. Three economic disadvantages of an oil price decline are that it will reduce annual revenue to oil producers worldwide by $1.5 trillion, oil patch giants losing their value, and the global economy will be between 0.5 percent and 1.0 percent higher. Overall, I think this is a good thing for the United States' economy. It will increase consumer spending because the lower gas prices are getting the lower income families to a better economic state. On the other hand, the topic of fracking which was not mentioned in this article is just, in my opinion, not worth it if it means hurting the planet.
ReplyDeleteSince mid-June, oil prices have declined about forty percent and just last week, prices significantly decreased. The Organization of the Petroleum Exporting Countries (OPEC) voted to pump oil at the same rate to continue these low oil prices. The decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. To put these prices differences into perspective, motorists have saved $630 million on gas since mid-June. Three economic advantages for the oil price decline include: 1) for lower-income families, the money saved from cheap oil prices will be put into the economy through buying groceries, clothing, or other things 2) large American companies, such as Delta Air Lines, are saving money. The cheaper the price of jet fuel is, the more money airlines will save. According to a recent CBS interview, Delta Air Lines will save about $40 million for every penny the fuel decreases, and 3) lowering gasoline prices lowers inflation rates. One of the disadvantages of lowering the price of oil is that the 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will result in reducing the annual revenue to oil providers worldwide. The long term effects surrounding this drop in prices will negatively impact the US economy and furthermore world relationships and trade. It is still to be decided whether or not the negative aspects outweigh the benefits. Low oil helps the economy somewhat but I think the impacts will be greater in the years to come.
ReplyDeleteCARLIE LIBRIZZI
Oil prices within the last 7 months have declined about 40% since it's peak in mid-June. The reason oil prices have declined so much is due to OPEC pumping at a extremely fast pace, the more supply the lower the prices. Three of the economic advantages are everyday American motorists are saving $630 million dollars on gas, the majority of the extra money will go into the economy (with lower-income households living on tight budgets they are likely to use money not spent on gas to buy food, clothes, etc.), and Delta Airlines is saving $40 million dollars on jet fuel to every penny the price goes down. Three economic disadvantages are OPEC members annual revenue would shrink by $590 billion, "the size of the global economy will “easily be between 0.5 percent and 1.0 percent higher as a result of the decline in oil prices”, and the 40% decrease will reduce annual revenue to the oil producers.
ReplyDeleteOil prices have dropped 40 percent in the past seven months due to OPEC pumping oil at a faster rate through fracking. Advantages of low oil and gas prices include American's saving money and/ or putting in other places of economy. The cost of travel has also declined due to the cheap oil prices. Declining oil prices will also help to persuade the European and Japanese central banks to give us cheaper oil. Disadvantages also came with such low gas prices. OPEC employees and other oil companies around the world will be losing trillions every year. Russia and Iran will be worse off than they are now with Russia having extreme inflation and Iran having oil as its number one export. Although these prices are extremely appealing right now they are going to hurt us big time in the long run. Fracking is not only hurting our economy but it is hurting our environment as well. If we continue fracking we are going to acquire many diseases due to pollution in our water and food and an even more broken economy.
ReplyDeleteIn the past 7 months oil prices have declined about forty percent and just last week, prices significantly decreased. It plunged after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. They have continued to do this because of the trend and was driven by the weak global economy and the expansion of the United States energy supply. Every day American motorists are saving a total of $630 million on gasoline, compared to what they were paying in June. With the oil prices dropping, there are other consequences that come along with the decline of oil prices. The first economic advantages of having the oil prices so low are that it will help the lower income families that are living on a low income, which would allow them to feed their family freely and for them to buy the needs like; clothes, food, and other things. The second advantage of having gasoline prices drop is that big American companies are saving money. Delta Air Lines are saving tons of money and with cheap fuel airplanes get to fly for cheap. According to the article “Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview.” Three disadvantages to having such low oil prices is that the oil producers will lose $1.5 trillion annually, oil services have lost up to 44% of its value and OPEC employees will lose $590 billion in revenue if this keeps going. Not only will this affect the macro-economy negatively but it also affects the environment negatively too. It’s a good thing to have lower prices and save money, but for others not so much. They need the prices to be high and investments are being lost. I think it will affect negatively.
ReplyDeleteSince 7 months ago, oil prices have been plunging dramatically. Prices for oil have declined 40% in the last 7 months. The significant decline in oil prices are the effect of OPEC(Organization of the Petroleum Exporting Countries) decision to pump at the same rate which would continue the lowered oil prices. The decision to pump oil at the same rate is being continued because of the suffering world economy and expansion of the U.S energy supply. Looking at it closely, motorists have saved $630 million on gas since mid-June. Economic advantages of an oil price decline include allowing lower income families to spend the money they would have used on oil on groceries and other products, American airline companies to save money on fuel, and lowering inflation rates caused the lowered gasoline rates. While the advantages might seem great, we have to remember to weigh the disadvantages. Economic disadvantages of a oil price decline include decreasing the annual revenue by 1.5 trillion, hurt investors, and oil companies will be drained plenty of their oil. As these prices continue to decline, the future economic impact of symbiotic industries will tragically be affected, as well. Low prices are nice for the consumers but the producers are losing money.
ReplyDeleteSince mid-June of 2014, oil prices have declined a whopping 40% and took another plunge just last week. It is reported that the average US price of oil was $2.77 per gallon and it is predicted to drop another 10-20 cents. This is because the Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate. The decision of pumping oil at the same rate is a trend that will continue due to the weak global economy and the expansion of the United State’s energy supply. Of course, our first reaction is "Awesome! Cheap gas... best thing ever!", but as we have learned, there is no such thing as free lunch! Therefore although the gas is cheaper, we are making a compromise in a different area, that area being clean water. Because of fracking (the process of injecting liquid at high pressure into subterranean rocks, boreholes, etc., so as to force open existing fissures and extract oil or gas), we are able to retrieve more fuel while simultaneously contaminating our water supply. Some economic advantages of an oil price decline are: 1) It will boost consumer spending which makes up 68% of the economy 2) it lowers inflation, and 3) airlines will save much more money on fuel, possibly making flights cheaper. Some economic disadvantages include: 1) it will cause harm to the environment 2) it will reduce annual revenue to oil producers worldwide by $1.5 trillion, and 3) it could also hurt investment, which runs high in the petroleum business. I predict that along with the decline in oil prices, the future economic impact of symbiotic industries will not be good. It may be an short term advantage, but it will be a long-term liability.
ReplyDeleteAccording to the article oil prices have decline about forty percent since it's peak in mid June. OPEC voted to continue pumping at the same rate causing the prices to remain low. Three economic advantages of this include: money saved by American motorist everyday, they save $630 million on gasoline compared to what they pay at June prices and, if prices stay this low they will get a $230 billion windfall. This also affects bug companies, as jet fuel prices decline, Delta Airlines saves $40 million. And seeing that the United States is an importer of energy, falling prices aid the economy and encourages consumer spending. But of course there are also disadvantages; the forty percent decline in the price of the international benchmark Brent-grade crude oil will reduce annual revenue of oil producers by a stunning $1.5 trillion. This affects major producers such as Russia, Iran, Venezuela and the United States. The long term effects of OPEC pumping oil at the same can be very damaging to the United States. Although this lowers gas prices, making more affordable, it pollutes the earth in a way that a couple years from now --or even sooner-- there will be very limited amount of clean water, which is not something to look forward to.
ReplyDeleteIn the past 7months oil prices have declined about 40 percent. The prices have declined because of the weak global economy and the United States expanded energy supply. OPEC decided to vote to keep pumping oil at the same rate in order to keep the prices of oil low. One advantage of course is that families will be saving money at the pumps which will allow them to save and spend money on things that they need. Another advantage it will lower our inflation due to the lower gas prices. Since we will will have more money in our pockets we will be spending more money which helps our economy grow. 3 disadvantages are that the oil producers are losing a lot of money, less tax profit for the good, and can cause us to use more then we actually need just because it is cheaper now. If we use too much oil just because we can afford it then we can cause a huge change in our natural resources.
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ReplyDeleteOil prices throughout the country have increasingly decreased in the past 7 months. As of now it is a 40% decline and each day is lowering at a decent pace. The prices have been declining because OPEC has decided to pump at the same rate. They have just continued a trend driven by a weak global economy and expanding U.S. domestic energy supplies. Three economic advantages of an oil price decline are the following:Lower income household families will benefit the most from these low prices of gasoline. The money that they are saving will be used for groceries and what not; Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, this is in reference to Big American companies; all in all the decline in gasoline reduces inflation. Three economic disadvantages of an oil price decline are the following: As Dudley states “the slump in oil prices may also help to persuade” the European and Japanese central banks to implement further monetary easing as prices remain subdued. It is clear that it will affect politics; Many oil services have lost a percentage of their oil values due to this decline in gas prices; OPEC opted to maintain output instead of paring back to prop up prices. Many economists believe it is time to analyze how the economy reacts to this decline before actually decreasing 10 cents more. Lower oil prices will boost consumer spending, which makes up 68 percent of the U.S. economy, but it could also hurt investment, which is huge on oil. By lowering the prices of the gasoline it will both hurt and repair the economy. It will help boost the economy but many investments made will be affected.
ReplyDeleteOil prices have declined about forty percent and just last week, prices significantly decreased. The oil prices have dropped dramatically because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. They have continued to do this because of the trend and was driven by the weak global economy and the expansion of the United States energy supply. Because of the low oil prices, motorists have saved about $630 million since mid-June. One advantage of having the oil prices so low helps the lower income families because it therefore allows them to spend money on other necessities. Also jet fuel is declining which means more people will travel. And lastly it can help to lower inflation. A disadvantage is that fracking causes the contamination of the water supply. another is companies who invested in oil patch companies lost 44% of their value.. And up to eight percent of inflation has risen in Russia. The economic impact of symbiotic industries includes a lot of suffering if these prices continue and the loss of interest towards eco-friendly businesses.
ReplyDeleteIn the past 7 months, the price of oil has decreased the price of oil has decreased by 40 percent, and has lowered even more after Organization of the Petroleum Exporting Countries (OPEC) voted to continue to pump at the same rate. This therefore is being continued because of the trend and was driven by the weak global economy and the expansion of the United State's energy supply. Many people are wondering how much the oil prices will drop and for how long this will occur. As of right now, everyday, American motorists are saving $630 million on gasoline compared with what they paid at June prices. $230 billion would be given if prices were to stay this low for a year. The first economic advantages of having the oil prices so low are that it will help the lower income families that are living on a low income, which would allow them to feed their family freely and for them to buy the needs like; clothes, food, and other things. The second advantage of having gasoline prices drop is that big American companies are saving money. he third advantage is that lowering gas prices lowers inflation rates. The first economic disadvantage would be the forty percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will reduce annual revenue to oil producers worldwide by a whopping $1.5 trillion. The second disadvantage would be it could hurt investments because they run in only petroleum and oil businesses. The third disadvantage would be that the oil services giant Halliburton has lost forty-four percent of its value. With having the oil prices very low, it will help many poor or low income families. Indeed it’s a good thing to have lower prices and save money, but for others not so much. They need the prices to be high and investments are being lost. I think it will affect negatively.
ReplyDeleteIn the past seven months oil across the nations have had a forty percent decrease in oil prices. A result that could lead to the biggest transfer of wealth in history. The Organization of the Petroleum Exporting Countries(OPEC) had a vote to continue pumping oil at the same rate they have before oil prices had reach its peak. You wont see big American companies complaing like Delta Air Lines who save about 40 million dollars from OPEC decision. Along with the added benefit of lowering inflation and having forein banks lay off strict monetary prices everything seems to be working out wonderfully, but there are some down sides to this. The anual revenue of oil companies or OPEC in this case would downsize by 590 billion dollars. In conjunction with the higher global economy(about a one percent increase). If prices continue to fall or stay static companies will go down infecting the whole economy. Making you wonder if 20 cent cheaper gas is really worth it
ReplyDelete-Raymond Tilus
In the past 7 months, oil prices have dropped drastically. They've plunged by about 40%. This is because of OPEC's (Organization of Petroleum Exporting Countries) vote to continue to pump at the same rate, thus continuing a trend by a weak global economy and U.S. domestic energy supplies. There are advantages and disadvantages to this, however. One advantage, of course is more money in pocket from not having to pay as high prices to fill up the tank. $630 million has been saved by Americans in contrast to what they payed at June prices., and the saved money will flow into the economy. Big American companies save money as well. Companies like Delta Airlines saved $40 million on gas. The consequences of this price decline, oil producers will see a huge drop in revenue, they will lose value in their company, and investments based on petroleum business will be negatively impacted. I predict that the economy will become more stabilized with more cash flowing into the economy from savings.
ReplyDeleteThis article presents plummeting oil prices resulting in producers, consumers, and the global economy as a whole being greatly affected. In the past seven months, the price of oil has dropped about 40 percent since its peak in mid-June. Last week, after the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate, prices have continued to deteriorate. This trend is being driven by weak global economy and the expansion of the United State's energy supply. It remains a mystery of how long these dropping oil prices will last and how low they will become. Currently, American motorists are saving $630 million daily on gasoline compared to June prices. Three economic advantages of this decline in oil prices are: (1) lower-income families will have extra money in there pockets from lower prices, therefore they will be able to spend more on groceries, clothes, etc. (2) airline companies save millions of dollars; for instance the article states, "Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines, the company’s chief executive said in a recent CBS interview." (3) this steady decrease in oil prices will effect the economy in such a way that inflation should decline (or in other words, deflate). Although there are many advantages of lowering the price of gasoline, there are plenty of disadvantages as well. Some disadvantages include: (1) this 40% drop in the price of the international benchmark Brent-grade crude oil results in a loss of $1.5 trillion of producer revenue worldwide.(2) Kathy Jones, fixed-income strategist at Charles Schwab, said that while lower oil prices will boost consumer spending, which makes up 68 percent of the U.S. economy, it could also hurt investment, which runs high in the petroleum business. Furthermore, oil services will lose much of their oil. As oil prices decline, the future economic impact of corresponding industries may continue to undergo rapid descent. (3) also, you cannot forget the negative effects of fracking that continue to present themselves through the environment and our "clean" water supply... Although their are many advantages towards lowering the cost of oil/gasoline, the magnitude of its disadvantages need to be looked at with a keen eye. Macro economy will experience a negative effect before being predicted by the people who are hypnotized by the mere thought of saving money... Save the global economy from this misguided ignorance!
ReplyDeleteIn the past 7 months, The price of oil has declined about 40 percent since its peak in mid-June.The price of oil will continuously decline because the OPEC have voted to instigate pumping of oil at the same rate that it has been during these past months. An economic advantage is that Americans are saving an estimated $630 million on gasoline and in a year savings will be up to $230 billion. The gradual decrease in spending for oil means that lower income households will have more money to spend on other necessities, for example, clothes, groceries, etc. Another benefit stated by the article said, "Every penny the price of jet fuel declines means savings of $40 million for Delta Air Lines." Generally this means that big American companies will not have to spend so much on shipping their goods and have more funds left over for themselves, which could mean a raise for employees and employers. "The slump" in oil prices may also help to persuade the European and Japanese central banks to implement further monetary easing as prices remain suppressed. However, if oil prices stay the way it is, the annual revenue of OPEC members would decrease money that will instead stay within the borders of the world’s biggest oil importers, led by the United States, China and Japan. Also, the 40% drop in price will cause oil producers world wide an extraordinary loss of $1.5 trillion. In Iran, whose economy and government budget rely heavily on oil sales, lower oil prices generates less income for their country they might rise up and neutralize any effort to pressure the regime into reaching a diplomatic accord on its nuclear program. With an increase in oil supply, this situation is definitely not good for some industries and more than like will hurt symbiotic industries that are near oil reservoirs.
ReplyDeleteWithin the past 7 months, oil prices have declined dramatically. Prices have dropped by 40% and are continuing to drop as days go by. These prices are declining due to a strategy named “fracking.” This involves chemicals that are pushed in the earth’s surface in or der to push out the oil that lies there.
ReplyDeleteOPEC decided to continue output in order to maintain their income. Now that prices are lowering, more people will buy gas more often.
Three economic disadvantages of an oil decline would be (1) cars will now be on the road more often since gas prices aren’t a thing to worry about anymore, which means that there will be more air pollution throughout the world; (2) although prices are great on gas now, the long-term effects on the earth’s surface will not be so great. The water supply is being contaminated and soon, water will be expensive rather than buying a whole case for $2 at your local gas station; (3) inflation rates will begin to rise.
As these prices decline, the future economic impact of symbiotic industries will become detrimental. Many businesses can lose their business (such as fresh water packaging companies) since their product is being completely wiped out.
In the past seven months oil prices have declined 40 percent. The prices have declined so much because of fracking, which is a strategy where the companies pump chemicals into the ground in order to get the oil to come up. OPEC continued pumping gas at the same rate that they were so it is lowering prices dramatically. What are 3 economic advantages of an oil price decline? 3 economic advantages of an oil price decline are that many lower income families will have more money in their pockets due to low gas prices, airlines will save a lot of money too on the gas and that can cause prices of airline tickets to go down, and the worlds economy would deflate the inflation. 3 economic disadvantages would be, many oil companies will decrease income which can knock out many jobs. Also the affect of fracking is very harmful to the world. If they continue fracking it can pollute all our spring water and we'll have no clean water to drink from. If everyone continues to spend money since they have money back from lower gas prices it can hurt the economy in the long run. If I was to predict the future of our economy if these prices continue to decline I would say it would hurt us. It would cause many businesses to run out of business.
ReplyDeleteIn the past 7 months oil prices declined 40%. They have declined due to the Organization of the petroleum exporting countries. They voted to pump oil at the same rate to continue these low prices. They have continued to do this because of the trend and was driven by the weak global economy and the expansion of the United States energy supply. Daily Americans are saving a total of $630 million on gas compared to what they were paying in June. Three economic advantages of oil prices declining is that it helps the people who are from a lower- income family, Many airline institutions are saving a great deal of money, and the last but not least advantage is that inflation rates are low. Three economic disadvantages is that the 40% drop of oil will reduce annual revenue to oil producers worldwide, It hurts investments because they run only in oil businesses and petroleum, and the last disadvantage is that oil is losing 44% of its value causing people to lose people money that work with investments. I personally think that low gas prices is a good thing, but it’s going to have a bad impact on the Marco-economy due to businesses losing money.
ReplyDeleteOil prices have gone down in the past 7 months about 40%. They have declined because the Organization of the Petroleum Exporting Countries voted to continue to pump at the same rate. The reason that the prices for oil have dropped drastically is due to this process called fracking where they pump chemicals into the ground to push out oil. Some advantages of an oil price decline are as the following : 1)Will help the lower income families by allowing them to feed their family freely and meet other survival needs such as a roof and clothes and other things. 2)lowering gas prices also lowers inflation rates There are also disadvantages when it comes to oil price decline. 1)OPEC employees will lose $590 billion in revenue if this keeps going 2)the oil producers will lose $1.5 trillion annually. it's good that it's helping those that are barely surviving under low income rates but at the same time it has a negative effect on many companies that are losing investments and would cause a negative effect in the macro economy in my opinion.
ReplyDeleteThe price of oil has declined about 40 percent since its peak in mid-June and plunged last week. This is due to the Organization of the Petroleum Exporting Countries voting to continue to pump at the same rate. The three economic advantages of an oil price decline is that many low income families will be able to get more pocket money due to lower gas prices. Airlines can save money on their gas and it can result in airline ticket prices decreasing. And inflation rates would lower in the economy. On the other hand three disadvantages are the current prices, the annual revenue of OPEC members would shrink by $590 billion, money that will instead stay within the borders of the world’s biggest oil importers, led by the United States, China and Japan. The size of the global economy will “easily be between 0.5 percent and 1.0 percent higher as a result of the decline in oil prices. The 40 percent drop in the price of the international benchmark Brent-grade crude oil over the past five months will reduce annual revenue to oil producers worldwide by a whopping $1.5 trillion. The future economic impact of symbiotic industries as these price declines will affect water supply. This is due to people fracking to get more oil, to lower money. And because of this water supplies will be tainted with chemicals and would not be consumable. In Iran, whose economy and government budget rely heavily on oil sales, low prices could intensify the effect of sanctions that have curbed the country’s oil exports in an effort to pressure the regime into reaching a diplomatic accord on its nuclear program. So, this can affect their country and their economy. They will lose both money and power. This is an overall shock to the system that can have both negative and positive affect on the economy.
ReplyDeleteThe price of oil has declined by 40 percent. As a result, the yearly revenue to oil producers will decline by 1.5 trillion dollars. The decline on oil prices took place after the Organization of the Petroleum Exporting Countries voted to continue the pumping at the same time. This pattern was led by a weak economy and growth in America's domestic energy supplies. The OPEC members would shrink by 590 billion dollars. That money will reside with the US, China, and Japan. The OPEC decided to maintain an output instead of paring back to prop up prices. US explorations have a better chance to balance their budgets than the OPEC. The advantages of lower oil prices are lower inflation, motorcyclists save money, and American companies are benefited. The disadvantages to lower oil prices are the OPEC suffering the loss of money, foreign countries have a lower value on products, and cartel decreases.
ReplyDeleteRussia is undoubtedly having an economic crisis right now. Their government has not reacted quick enough to the problems they are facing. The main cause of this is, according to the article, because of the sanctions on Ukraine and lack of structural reform. Kudrin said he believed that between 25 and 35 percent of the decline in the rouble - down some 45 percent against the dollar so far this year - could be attributed to sanction These sanctions eventually led to Russia's falling oil prices and junk status. "Junk status" in this article is a term used in regards to their low economic status.
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