Jan
09

Petrol Prices

As recently as 2010, cheap oil was great for the US as oil production was low. However, due to fracking, US production has doubled since 2010 to 11.6 million bbl/day. Lower prices reduce corporate investment which leads to reduced employment. But due to productivity gains, oil field expenditures have declined along with employment; from 200,000 persons in 2014 to 150,000 today. Today, net net, cheaper oil is a mild stimulant.

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