From individual drivers to major manufacturers, we all feel the immediate benefit from lower prices at the gas pump. On the other hand, the oil & gas industry has been a victim of its own success. We’ve all seen the headlines about the struggles of many of the small and mid-sized producers to stay in business.
Ironically, lower costs for fossil fuels creates less demand for renewable energy as well. The boom in that industry began in the aftermath of the recession and record high prices coming out of 2008. Today, trucks and SUV’s represent the biggest gains in automaker profits while the demand for cheaper fuels is waning. Higher oil prices lead to more investment in green technology.
Meanwhile, we’re seeing the effects of record low gas prices as the markets drop. That affects all of us. Let’s hope that gas prices rebound to a reasonable price that keeps us happy at the pumps, keeps those thousands of oil & gas workers employed, and keeps our retirement funds intact.