I don't disagree with you, but at the same time...even when oil was in the $80-90 range we still heard about how opening more lands will increase production and lower energy prices. When in truth the energy companies don't want lower prices for the products they are making, they just want more access. While $30-40 may be way to low, I still think the prices need to come down from where they have been. Some articles that counter all the negative news out there from when this started back in October...
Oil Prices Fall and the Global Economy Wins - Businessweek
Oil prices are falling ? and that?s good for the U.S. and bad for Russia - The Washington Post
CNBC's Kudlow has an interesting take on this. Essentially the freak out is unwarranted and is being fueled by the select few that will be most impacted by the price drop, but in the end it is better for the vast majority.
Low oil prices are a free-market victory?commentary
So if the shale-oil producers can still make money even below $40...why so much freak out of just falling under $70? To me that shows they are more worried about losing their massive cash cushion, not that they are suddenly going to be bankrupt. At the end of it they need to do what most industries have already - evolve or die. What frivolous expenses have they been banking on for years that they need to rethink at this point?
Again...people in the Midwest, Northeast, and West Coast are cheering for this to continue. It means lower costs for their industries and finally able to rebound. Believe it or not, the economy is not that great once you get out of fly over country. Energy costs have a lot to do with that. If that means the center of the country needs to feel a little pressure now so the rest of the country can become robust with growth again, then so be it. There are a lot more people in those areas that can be impacted by a positive upswing compared to those that live all through the Plains states. We need to have a good balance for the nation's economy to hum along...unfortunately it is still too slanted and uneven that while we thrive the majority of the country is still lagging.
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