The recent drop in crude oil and gasoline prices is good news for businesses and households, especially as...
Bernard L. Weinstein, National Journal The recent drop in crude oil and gasoline prices is good news for businesses and households, especially as the summer driving season gets underway. But the downside of falling prices is that politicans, the media and the public will stop focusing on energy as a critical public policy matter. Indeed, the positive effect of $4.00 gasoline was to drive home the reality that America does not have a sound, domestically targeted energy strategy and that we need one both for economic and national security. A slowing world economy is largely responsible for falling energy prices, as is the easing of tensions with Iran and increased production from Saudi Arabia and other OPEC countries. Most of Europe has slipped back into recession, the economic recovery in the U.S. appears to be losing steam, and even fast-growing countries like China and India are recording lower rates of economic growth, thereby muting energy demand. But when the global economy starts growing again, oil supplies will tighten and prices will go up. Read More
