I just discovered an important truth. Supper low oil prices are a disaster for our economy. Let me explain. The energy sector is one of the most important parts of our economy. If the energy sector is healthy (making a good profit), then our economy is doing fine. Oil and natural gas account for about 8% of the U.S. economy. It is over a $1 trillion-dollar industry. Not only is oil and gas one of the largest sectors of the economy, it is one of the largest employers and one of the largest tax and fee paying segments. So when oil and gas are hurting, it has a direct impact on our economy. Yes, high oil prices hurt the economy, but supper low prices are even worse. With oil under $40, the oil and gas sector is going to get hit hard. With it will come a huge hit to our overall economy that very few seem to notice.
I like lower gas pieces (though they have not been all that low in California), but not when it starts costing profits, jobs, and tax revenue. I oil and gas remain this low, buckle your seat belts, this is going to get ugly.