Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Texas

PJMcK

(24,273 posts)

2. Could someone please explain this to me?

Reply to TexasTowelie (Original post)

Tue Mar 10, 2020, 08:25 AM

Mar 2020

Lower oil prices used to be a good thing for Americans. It meant that gas prices would drop resulting in increased travel and economic activity.

But a price war between Saudi Arabia and Russia, which will lower gas prices for Americans, is bad for the economy. I understand how that would hurt the Texas oil industry but what about the Americans in the other 49 states? Won't their fuel costs be lower?

I sense that I've over-simplified the issue and appreciate any enlightenment.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

5 replies

= new reply since forum marked as read

Highlight:

How will collapsing oil prices affect Texas? It depends on these two factors, experts say. [View all] TexasTowelie Mar 2020 OP

I think some Texas producers of oil will be forced out of business if the prices remain low long, duforsure Mar 2020 #1

Could someone please explain this to me? PJMcK Mar 2020 #2

It means that instead of using domestic oil TexasTowelie Mar 2020 #3

Thanks, that's interesting PJMcK Mar 2020 #4

Oil needs to be around $60 a barrel in order for the oil industry TexasTowelie Mar 2020 #5