Low gas prices could threaten the economy

As gas prices in Oklahoma and across the country continue to drop, the number of people concerned with how it might affect our economy continues to rise.

Although most Americans are happy with the $2.13 average gas prices reported by the U.S. Energy Information Administration on Jan. 12, 2015, there are concerns on how the prices relate to the economy.

“I think the low gas prices at the gas pumps will help boost some sectors in the economy over a short period of time by allowing a little more spending from the average American,” Oklahoma Christian Alumnus Ben Christian, project development engineer at Continental Resources, said. “However, if oil prices stay low, we’ll see job losses from the more dominant oil and gas-related states and their economies will be greatly affected in a negative way. We’re already seeing the negative effects in Texas.”

Gas prices started lowering in late October and have continued to drop. In Oklahoma City the gas prices are averaging $2. According to the American Automobile Association, this is the first time since 2009 that gas in Oklahoma has been this low.

The EIA gave four reasons for the low gas prices, stating the main reason was the abundance of resources and the increased use of techniques, like hydraulic fracturing that has increased oil production with “less damage to the land.”

Other reasons given include increased U.S. crude oil production, the lack of any major disasters recently and the organically low winter prices due to less frequent travel expenses in the winter.

“Oil is an energy sector, that means that it really controls the whole economy overall, so it could be really detrimental to our economic power and our economic health,” Redding said. “OPEC is dumping all of their oil reserves and once they put the competition out of business they can then raise the prices like before.”

With so many factors affecting the price of gasoline, retrospect allows people to monitor past trends to determine the effects it may have. Advantages and disadvantages of low gas prices in America garnish various opinions on the lowest prices in Oklahoma in the last five years.

“I’m not really sure how I feel about the low gas prices, on one hand it’s good for my budget for sure,” senior Wilmina Gley said. “… But speaking for the future, I’m not sure how it will affect our economy or if we will feel any repercussions from it later on.”

00