Everyone knows that the price of oil is extremely low right now. Depending on perspective, this could be good news or bad news, and you’ll find that different sectors of the country are looking at this very differently. US News & World Report looked into some of the mixed feelings about the lower prices. So, exactly what are these different feelings? It’s time to look at things from a few different perspectives, and in doing so, get a better idea of how it could affect the economy.
Who Feels the Pain?
First, let’s consider who will feel the brunt of these lower prices the most. Naturally, it is the oil and gas industry. The companies whose sole purpose is to explore, produce, refine, and transport will suffer some major losses in terms of revenue. However, they will lose more than just revenue, since they will try to make up for their losses by reducing their workforce. This means that many local communities with people making their living from these oil companies will suffer. This has a potential to erode some of the economic headway that many of these states have been making during the boom.
Who Reaps the Benefit?
Of course, some people see the news of the lower oil prices as great news. In fact, many people feel this way. If you go to the pump to fill up, you will notice that the price of gas is quite low compared to the past couple of years. Families are able to save a little bit of money when it comes to getting around and running errands, and that means that they can put more of that money back into the economy. Companies are saving money on the cost of transporting their goods as well, and this is helping them to improve their bottom line. Ultimately, the drop in price could be better for the overall economy, but there’s not enough data to know whether this is a reality or merely wishful thinking.
It Can’t Last Forever
No matter how you feel about these lower oil prices, one thing is certain. They will not last forever. For every boom there’s a bust and for every bust there’s a boom. The prices will go up again, although it might still be some time before that happens. The only thing to do is watch for the winds of change and to prepare for when things turn around.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughneck Repair and Upgrades and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.