Supplies are high. They say demand is low but I don’t agree. People are driving as much if not more than ever. Decades of high prices and “scarcity” of oil spurred widespread exploration for oil sources and the development of fracking.
Of course all this increased the supply causing prices to plummet. So here we are.
My investment portfolio includes a fair amount of oil stock which has gone down recently. Fortunately not too much yet. As long as low prices doesn’t damage the oil companies I should not be in too much trouble. You would expect them to reduce production to keep the price steady but they are trying to keep income high to support the company. Commendable but I’m not sure that is sustainable in the long run. Hope that works out.
At the same time I appreciate the low gasoline prices so that I can more easily fill my my RV and go have some fun. I would also like to buy a fixer-upper 1960s pickup truck. It would really be nice to enjoy low prices for a while but I don’t think that is sustainable either.
I guess we’ll just have to wait and see what happens. In the meantime, enjoy it while you can. I remember 50 cent gas when I was in high school. I don’t think we will ever get back to that and I don’t think it would be healthy for the economy if we did but $2.00 gas is OK with me.
I just hope low energy prices don’t affect our investment in alternative energies like solar, wind and whatnot. We are going to need that stuff eventually when we finally run out of oil. That has to happen eventually and now it is likely to be sooner at our higher consumption rate.
There’s my ramble for today.