Gas is 1.89 in my area, what are the ripple effects of this era of cheap gas in America?

[SvennoJ]

MikeRox said:

SvennoJ said:
Last time I got gas it was down to 96 cents a liter (Canada) (was near 1.50 before)

That can't be good for the economy. Revenues from exporting the expensive to mine oil sands are down. The environment will suffer most as budget cuts will be made. Alternative energy solutions will also be put on hold as they are much less competitive now.


Bad for oil exporting countries/provinces, bad for the environment, good for everyone else.

It's a welcome relief to a lot of people in the UK. It was up to £1.36 a litre at one point, it's now dropped down to £1.09 where I am ($1.96 cad) which should hopefully help bring the general cost of living down a bit.

It will reduce government revenue through fuel duty, but the expectation is that any savings passed onto consumers here at the moment, will go straight back into other spending helping boost the overall economic recovery.

Awful news for the likes of Russia. The OPEC countries don't seem too concerned at the moment, I do wonder if they're trying to squeeze the shale boom etc out of the market with such cheap prices.

I don't see the long term strategy in that though. They're just burning through their oil faster. Shale and fracking will only be put on hold and be revived later. I guess they don't have a long term vision, get rich now and retire seems to be it.

We sold our hybrid at the right time when we needed a bigger car, family size. Now half the fuel efficiency doesn't feel so bad anymore. Still bad for the environment :/