We all save money at the pump. Produce prices begin to fall due to cheaper transportation. Most consumer goods go by truck and train, cheaper fuel, cheaper delivery. This works out for everyone. Right? Not Necessarily.
It’s not good for Ebsco. Several of Ebsco’s customers are in the energy industry and they are pushing orders out. Domestic oil production is grinding to a halt with sub $50 a barrel oil. They just can’t make money. You say “SO WHAT” “I’m sorry for Ebsco but every American is going to be $300 to $500 richer due to what they save on gas. WILL THEY?
Let’s start with the fact that 9.8 million people work in the energy industry either directly or indirectly. One of the largest employers in the United States. It doesn’t help them.
Then there is YOU. Yes YOU. If you have a 401k or other retirement plan it is most likely heavily invested in the energy field. That’s right, your retirement. The potential down turns in the oil stocks may easily over ride the meager $300 to $500 you are saving at the pump.
What about energy independence? As we continue to import from the middle east we give them power. They manage the supply and use the US dollars to build empires (and armys). As domestic production increased, imports decreased. Nations that fund terrorist had less to spend and lost power. America grew stronger as they grew weaker. With domestic production shutting down they grow in power and funding. What is the value of American safety?
As your retirement accounts declines, 9.8 million people in the energy field face cut backs and layoffs, and terrorist nations grow in power I hope you enjoy your $300 a year you saved at the pump.
I know I have very over simplified this entire topic, BUT there is much more to it then cheap fuel at the pump.
Now if you’ll excue me I need to go fill up my car. Highest octane most expensive gas they have. I’m a patriot.