Oil's back to pre 2004 levels. Gas is currently sold at about 1.34 a gallon. If there is one good thing about this recession, is that it drew back demand, and now the market's so flooded with oil that prices have dropped tremendously.
The implications? Well, for us college students, its simple. Gas is cheaper, travelling is easier, and the financial brunt of this recession is reduced. I'm pretty sure all other American's are on the same boat here. The oil producing countries though, i'm afraid, are hating on us. They planned out their budgets based on a price of $60 a barrel, and countries like Iran, Venezuela and Russia and feeling its immediate fallout. They cut back on production, cut back on spending, have tried to reign in the supply but the market just keeps falling.
This is good, since prices were overbid, but is also bad since a lot of energy related consumption needed a wake up call, and high prices was it. What i would hate to see is all that media attention on the "new energy" sector to goto waste. The 80's showed us a flash of light, and last year's prices gave us the thundering sound blast. Lets not forget, that this lighting rod of oil dependency will always strike again.
1 comment:
you're right burningsnowz. i hope the american people don't become complacent again with cheaper prices and we still strive harder than ever for energy independence.
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