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Nowadays, with any good economic news, the price of oil rises along with it. However, good economic news is not proportionate to corresponding percentage rises in the price of gas which means that growth will be hampered by oil. Even Jim Cramer, who is known for being optimistic expressed doubts about the economy on CNBC's 'Mad Money' saying $6 per gallon gas is possible.
Another problem to economic growth is its effect on China which is currently a global economic driver. In addition to Europe's recession, high-oil is quickly becoming another major concern per Reuters. Moreover, according to Reuters, Asia is the largest consumer of commodities which means any increase in oil costs will lower corporate profits and related investments into the economy there.
In the United States, were gas is already taxed between 26.4-.68 cents per gallon, Congress even discussed the issue of rising gas prices precisely because it threatens the economy per the Associated Press. Questions of increasing domestic capacity, balancing environmentally friendly energy solutions and drilling on government owned land have done little to grease the legislative mechanics.
Delays such as moratoriums on drilling cost the economy billions according to Joseph R. Mason in Louisiana State University report. Moreover, every .10 cent rise in the cost of gas costs the economy $11 billion per the CS Monitor and as restated by CBS Atlanta. That pretty much cancels out the $193 billion from shale oil production that All Energy Consulting claims is a benefit to the economy.
However, shale oil production as well has not grown at an equal pace with oil prices. Since the late 1990s gas prices have risen near 400 percent whereas shale oil production is closer to 200 percent in terms of dollars per thousand cubic feet stated by AEC. There is little doubt the energy is an issue, and will likely continue to be issue, especially if political events in the Middle East take a sharper turn.
Delays such as moratoriums on drilling cost the economy billions according to Joseph R. Mason in Louisiana State University report. Moreover, every .10 cent rise in the cost of gas costs the economy $11 billion per the CS Monitor and as restated by CBS Atlanta. That pretty much cancels out the $193 billion from shale oil production that All Energy Consulting claims is a benefit to the economy.
However, shale oil production as well has not grown at an equal pace with oil prices. Since the late 1990s gas prices have risen near 400 percent whereas shale oil production is closer to 200 percent in terms of dollars per thousand cubic feet stated by AEC. There is little doubt the energy is an issue, and will likely continue to be issue, especially if political events in the Middle East take a sharper turn.
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