Wednesday, April 1, 2015

Winners and losers

As a consumer one would enjoy the decrease in gas prices. However, bigger issues can arise over fluctuating gas prices. Falling gas prices mean lower earnings for the producers. When producers aren't in the black the consequence falls where they spend their money... the employees. In the event of oil and gas price decreases drilling companies will stop hiring and start firing employees.

Another point to consider is the issues that cause the fluctuating gas price. The world is competing for the natural gas market... this is due to high production rates. Now the countries who used to import oil have enough natural gas to even export. This leads to better prices per barrel which throws the balance of the market into a spiral.

http://www.forbes.com/sites/kensilverstein/2015/01/09/falling-oil-prices-impact-economy-and-the-keystone-pipeline/2/

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