Kenneth Cole REACTION Women's Fine 16800 Glass B07DX38SF1 5 Guava clindamy-16801 7.5 M US B07DX38SF1 Parent e144bb5

Dynamic solutions for a fluid world™

3 minutes reading time (616 words)
Kenneth Cole REACTION Women's Fine 16800 Glass B07DX38SF1 5 Guava clindamy-16801 7.5 M US B07DX38SF1 Parent e144bb5 Falling Oil Prices...Good or Bad? President's Perspective
2341 Hits

Everyone - at least everyone in the USA - is talking about falling oil prices:

For those interested in the reasons behind the falling price see "Why the oil price is falling":

Four things are now affecting the picture. Demand is low because of weak economic activity, increased efficiency, and a growing switch away from oil to other fuels. Second, turmoil in Iraq and Libya—two big oil producers with nearly 4m barrels a day combined—has not affected their output. The market is more sanguine about geopolitical risk. Thirdly, America has become the world’s largest oil producer. Though it does not export crude oil, it now imports much less, creating a lot of spare supply. Finally, the Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price.

Several of our younger engineering staff have asked me recently about the falling oil prices and the expected impact on demand for our simulation software in 2015. This is part of the bigger question of the impact of oil prices on the US and global economies.

For companies highly focused on the upstream oil industry - and especially exploration and installation of hardware for new oil extraction - there is no doubt such companies will be impacted and that impact will generally be negative. For example see "As oil prices fall, Alaska governor halts project spending".

However, a large part of the rest of the economy benefits from lower oil prices. Companies and consumers can keep more of their cash to spend on other things. For the industrial sector, projects that may have been too expensive previously now become more economically viable and hence will start to move forward.

This shift from one sector to another sector is discussed in the "Oil City Prepares for Pain" article linked earlier. In speaking of the "Oil City" also known as Houston the article says:

Much of the wealth created by high oil prices has been concentrated on the west side of town, known as the Energy Corridor, which is dotted with the headquarters of some of the biggest oil companies in the U.S.: BP America (BP), ConocoPhillips (COP), and Shell Oil (RDSA:LN). But there’s a boom going on in the eastern, industrial side of Houston, where companies such as Dow Chemical (DOW) and Valero Energy (VLO) are building petrochemical and refining plants. Cheap oil, just like cheap natural gas, will be a boon to them. “Labor could start to migrate across town,” says the University of Houston’s Gilmer.

With respect to AFT, some of our customers are in the upstream oil industry and it is to be expected that our sales into that sector will decrease. However, we expect our sales into other sectors to rise and likely to more than make up for the decrease to the upstream oil sector.

As the drama of the falling price of oil plays out, it provides a fascinating view into the field of Economics and how the Laws of supply and demand work. Opportunity always exists.

NVLXIE Ladies Sandals Summer Comfortable Roman style Leisure Students Shopping Party Three Colors 5cm B07DZY3QFQ Parent , NVXIE Women's Ladies Party Diamante Evening Wedding Bridal Prom Strappy Mid Heel Sandals B07DZRJGD9 ParentNVLXIE Ladies Sandals Summer Fish Mouth Ultra-high heel Velcro Wear Street Party Shopping Three Colors 9.5cm B07DZYC28B ParentNVLXIE Female Sandals Summer Poe Rome Bohemian Flat Bottom Woven Beach Three Colors 3cm B07F125WX9 Parent , NVLXIE Women sandals Summer Thick Bottom Waterproof table Poe Non-slip Students Shopping Beach Red Black Silver... B07DZZ4977 Parent , Flat Sandals Female Summer Buckle Buckle Flat Sandals B07F18Z674 Parent , NVLXIE Ladies Sandals Summer Pointed Hollow Rough heel Breathable gauze Pu Shopping Work Daily Three Colors 4cm B07DZZN5K1 ParentNVLXIE Ladies Sandals Summer Ping heel Rome Leisure Thick Bottom Rhinestones Comfortable Students Shopping Party... B07DZXDFMH Parent , NVLXIE Ladies Sandals Summer Dew Toe Velcro Rough heel Pure Color Jeans Embroidery Comfortable Shopping Party... B07F1252P5 ParentNVLXIE Ladies Sandals Summer Poe Fish Mouth Thick Bottom Zipper Rome Students Shopping Black 6cm B07DZY3TZZ Parent , NVLXIE Ladies Summer Sandals Horseshoe Cold Slippers Rhinestones Hollow Rough heel Dew Toe Shopping Party Golden... B07F134X2F Parent , Sequined Platform Sandals Simple Breathable B07F17GRQ3 Parentyalanshop Summer Rivet Pointed Word Buckle Thin Cat With Sandals Female Paint Rivet Nails With High Heels B07F1378B7 ParentVagabond Womens High Heels Sandals Black B07DZ8KC4P ParentNVLXIE Ladies Sandals Summer Rome Thick Bottom Students Fish Mouth Shallow mouth Leisure Comfortable Four colors... B07F13XNBP Parent , NVLXIE Ladies Sandals Summer Hollow Sweet Velcro Dew Toe Waterproof table High Fine with Catwalk Shopping Pink... B07F1142TL Parent , GSCshoe Thick Mesh Casual Women Sandals B07F14JK8P ParentJUWOJIA Flats Sandals Butterfly-Knot Pu Leather Women Sandals Casual Platform Sandals Black Womens Summer Sandals... B07F17SPQZ ParentSandals Female Summer with A Word with Sandals Female with Open-Toe Sandals B07F15RQ33 Parent , NVLXIE Ladies Summer Sandals Rough heel Round Head Fish Mouth Waterproof table Leisure Cool drag Shopping Party... B07F13W9CX ParentJingSen LFD Summer Slope with Thick Suede Sandals Wild Word with Buckle high-Heeled Sandals Female Summer B07F17QN77 ParentGSCshoe Leather Sports Casual Women Sandals B07F1569JL Parent , QSCG Women's Peep Toe High Heels Satin Ladies Sandals Platform Pumps Wedding Evening Party B07F18TMRV Parent , Gentlemen/Ladies Bandage Simple Ladies Sandals B07F1981CW Parent Many styles Lush design Extreme speed logistics , Onex Womens Verona Suede Open Toe Casual Ankle Strap Sandals B07F1DF54F ParentJingSen LFD Female Summer Wild Rough with Suede Word Sandals Color Matching Buckle High-Heeled Sandals B07F18Z8HZ ParentCafè Noir KND504 T Sandal B07F21Q2MX ParentWomen's Heeled Sandals Peep Toe Stiletto High Heel Platform Black Sandals with Zipper for Party Evening Wedding B07F1M13F4 ParentWinsden Original Top Cashmere Fashion Flat Sandal … B07F1T337P Parent
The Weight of Currency
What About Viscosity Corrections?
Comments Kenneth Cole REACTION Women's Fine 16800 Glass B07DX38SF1 5 Guava clindamy-16801 7.5 M US B07DX38SF1 Parent e144bb5 Shoes
No comments made yet. Be the first to submit a comment
Friday, 26 October 2018