Cheaper Fuel Prices Helping Some, Hurting Others
Some people are rejoicing for the cheaper fuel prices. Then again, some people and some states stand a chance of losing funds and jobs because of the lower fuel prices.
With gas prices at less than $2 a gallon in some areas of the country, some consumers are excited about the savings in their pocket book. According to Market Watch, we save over $14 billion dollars in 2014 due to cheaper gas prices.
On the flip side, there are some jobs that could disappear because of the slowdown in oil production. Some states will feel the effects of dropping fuel prices and North Dakota is at the top of that list.
According to Market Watch, here's how the effects of these cheaper prices could effect North Dakota-
"Oil-rich North Dakota will feel the biggest negative impact from falling oil prices thanks to the fact that oil production has been such a big help to North Dakota’s economy in recent years (the state has the lowest unemployment in the country, in part due to oil-related jobs) — and lowered prices could slow growth. The study reveals that “at 4.61%, the percentage of oil workers in North Dakota’s workforce is the second highest in the nation, and the state produces more than eight times the amount of oil that it consumes … that’s a bad combination in the context of lower oil prices.” MoneyRates estimates that the drop in oil prices over the past year will cost North Dakota $11 billion in 2015 – or roughly $16,000 per resident.
Other states that will feel the negative effects of lower fuel prices are Wyoming, Alaska, Oklahoma and New Mexico.
From personal experience, I know of friends in Louisiana working at fabrication shops, these are the shops that build supplies and equipment for the drilling companies. They have already laid people off and are expecting more lay-offs due to the reduction in work orders that come out of the Bakken.
Living in North Dakota, we should all be concerned about the lower gas prices and the reduction in drilling. Some may enjoy the cheaper fuel prices at the pump and that's understandable.
North Dakota also receives millions if not billions of dollars from tax revenues generated from the production of oil in our state. Good for some, hurting others!
What do you think? Good or bad on the cheaper fuel prices at the pump?