Oil crisis

January 25, 2016

There is no doubt the oil price has dropped at the pump. That means we have more companies producing oil in large quantities over powering retailers. This is both good news and bad news for consumers. For sure it is cheap at the pump. that means we pay less to have more oil in our gas tanks. But it could also means lower customers because same number of customers buying from a pumped takes longer to buy again and when they buy, they buy it at less money. This might lead to businesses making employees redundant. When one person looses job it affect the other. For example a person working in the oil field pays school fees or buys at the groceries. More oil means that more people have discovered way to make oil faster and cheaply or new sources to make oil. Its all shit right? Oil prices will continue to go down in a long run and more people and companies will continue to come into production and market. The future of oil might become like power(electricity). Every country or group of countries produces their on oil and sell to their customer eliminating imports and exports. That means prices will go down but more people need to be added to oil industry to work. South Sudan, Uganda and Kenya had a plan to build a network or pipes to mass produce oil in Kenya at the sea. It might have started or still on plan, but this will bring in and create more jobs and encourage buying of pipes etc. More oil is a good message to both consumers and producers. In the world of investment, an oil company can invest in new oil company or work together to produce more oil.