“Oil Price Plunge: Risks and rewards,” is currently on CNN News regarding the recent drop in oil prices.
For the first time since May 2009, U.S. pump prices are now under $2.00. The average household saved about $700 last year in costs of fuel. Consumers enjoy the welcome relief of cheap gasoline and heating bills. The oil price drop is feeding geopolitical, economic and environmental covers that may have repercussions in the future.
This topic effects me and people of my kind. Being a teenager in the U.S. and getting your license and your own car, means your own responsibilities. Not all parents would pay for their child’s gas and expect them to uphold the money and a job to make the pay for their cars gas. While the oil prices might not stay low, most should take advantage of the opportunity, because it won’t be like this for long. Good things never last. While it may seem good for us, it might not be good for our country or its wellbeing.
Globally, cheap oil may give an opportunity for governments to stage out energy allowance. “Keeping fuel prices low strains countries’ finances, encourages more energy use and emissions, and undermines alternative fuels.” Research shows that more than two dozen governments undertook some form of gas allowance reform in the beginning of 2014. Attempts in the past disentangle subsidy programs have sparked well-known action and riots in countries, Indonesia and Nigeria, but with fuel prices now cheaper, the political risks these occurrences of action are abbreviated.