Oil price drop: A good thing?
EconoMeter panel sees plusses and minuses
Roger Showley, U-T SAN DIEGO
Friday, October 17, 2014
Kelly Cunningham, National University System
Although likely temporary, the price drop boosts U.S. economic growth by reducing fuel bills and leaving more money for consumers and businesses to spend on other things. Propelled by higher prices, U.S. oil production boomed and helped reduce dependence on foreign oil. With shale oil drilling in North Dakota and Texas, U.S. crude oil production climbed to the highest level since 1986. Including natural gas, total U.S. oil output now equals Saudi Arabia production. Lower prices will also dent revenues of countries such as Russia, Iran, and Iraq, with oil exports an enormous part of their economy and government financing.