If you drive a vehicle of any make, you already know that gas prices are heading upward, and they usually do at this time of year as we head towards the Memorial Day Weekend. As a reminder, here in the U.S., the Memorial Day Weekend signals the beginning of the summer driving season.
Today’s stats for regular gasoline in the U.S (Source: GasBuddy.com) show that the average price is 18 ¢ higher than they were a month ago:
One Week Ago 2.145
One Month Ago 2.063
One Year Ago 2.626
While U.S. motorists are enjoying this extended period of lower gas prices and are driving more, what is often overlooked in this bonanza is the negative impacts on other parts of the U.S. economy – notably, the oil and gas sector – and those of oil producing countries around the world. Here are a few data points worth noting:
- “…It was startling to learn that the oil exporting countries in the Middle East lost $390 billion in revenue in 2015 and should brace for deeper losses exceeding $500 billion this year, according to AP and the International Monetary Fund.” (Source: GasBuddy.com, May 2, 2016)
- “The crash in crude oil prices caused a stunning $67 billion in combined losses by 40 publicly-traded U.S. oil producers last year, according to Energy Information Administration research. And the bleeding is expected to continue at least early this year for many.” (Source: CNN Money, April 26, 2016)
- “Saudi Arabia is raising $10bn from a consortium of global banks as the kingdom embarks on its first international debt issuance in 25 years to counter dwindling oil revenues and reserves.” (Source: CNBC/Financial Times, April 19, 2016)
Expect a follow up to this post around Memorial Day Weekend which is about four weeks away.
Until then, happy motoring and safe driving to each of you.