Friday, January 8, 2010

Why does everyone talk so badly about oil/gas prices going down?

I'm just wandering why do the people/press talk so badly about the oil/gas prices going down? Isn't this a good thing because now that gas prices will go down the people will pay less for gas and have more money to spend on other things like clothes,toys,etc...and then our economy will go up? Just want to here your opinion thanks Why does everyone talk so badly about oil/gas prices going down?
In the short term, the drop in oil prices is good for consumers. However, this means that the development of alternative fuels becomes less economic. This means that we continue being dependent on fossil fuels to meet our energy requirements. Since their is no viable alternative to fossil fuels (because developing alternatives is expensive), it allows the few nations that produce oil to exploit this and basically charge what they feel like since the consumer has no choice, they will have to pay up for it. You can read more on my blog.Why does everyone talk so badly about oil/gas prices going down?
It is interesting that there was so much talk about how bad it was when they were going up (it seemed that the local news had stories about it virtually each day), and now we're getting the same when they're going down.





It is bad, of course, for those who have invested in oil futures, as well as in stocks of oil companies and companies in the periphery of the oil industry. It's also accompanied by other declines in commodity prices, which hurt plenty of investors at a time when the stock market isn't doing so hot.





(Of course the lower prices for commodities are better - all else being equal - for buyers of those commodities...which ultimately includes all of us).





And of course lower prices puts less economic pressure on the development of alternative fuels and more efficient practices.





But the real problem is not the lower price of oil itself, but what the price indicates. Lower use of energy (absent any gains in efficiency) is indicative of economic slowdown. So, the declining oil prices are yet another sign that the global economy is going into the tank.
~~It is because people have short term memories. They will quickly forget how adversely affected we were and how badly we are at the mercy of OPEC.





Therefore, we will quickly lose the momentum to get the ball rolling on alternative fuels. It's imperative our country gets off of oil. The sooner the better. It controls our economy and dictates our foreign policies.





People only want change when their own wallet is being hurt.~~
I like paying less for gas, but that only further delays the funding for alternative fuels, IMHO.





I feel that it would be best long term to pay a lot for gas now, jump start the research to completely eliminate the need for petroleum, and move on to a totally renewable society.
While oil prices were higher there was more of a push to renewable fuel (Solar, Wind, Nuclear). Now that prices are dropping people will be able to drive there big SUV's and Trucks again and that just drives the media nuts.
Yes, actually it went down in the nic of time for the holidays. Maybe people are afraid they will go back up?

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