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Low gas prices:
a blessing or a curse?
Luke Overmyer @lmdrluke
Contributing Writer
Many Oklahomans have seen a decrease in gas prices over the last two years due to an increase in supply from both the United States and other countries because of a new way to produce oil. Hydraulic fracturing, or “fracking,” allows hydraulic wells to crack the earth by filling up pockets of oil with sand and water to build up pressure in the ground, which allows the oil and other natural gas to seep out. However, even though many Oklahomans are saving at the pump, many believe that these fracking techniques are the cause of the recent earthquakes. “I absolutely believe they do. While it’s not necessarily the fracking process, when the disposal wells are injecting the water back into the ground it causes shifts in the Earth’s structure,” said Travis Roach, University of Central Oklahoma Economics Professor. Furthermore, the decrease in gas prices has affected those who work in the energy sector, such as employees of Chesapeake Energy and Devon Energy.
For Instance, according to CNN, Chesapeake Energy plans to lay off over 15 percent of its workforce due to the decrease in oil prices. “The Energy sector in general is depressed, so these people don’t have another career they can jump into quickly,” Roach said. On the other hand, many college students have been taking advantage of the recent shift in gas prices by spending more on groceries and other necessities. “I, for one, am in love with these gas prices; being able to fill up my tank for less than $20 at a time allows me to spend more on clothes and food,” said UCO student Daniel Whalen Jr. In addition, reduced gas prices give the the general consumer a chance to build up a savings account, purchase a new vehicle, or even buy a brand new TV. On top of that, it also allows many individuals to save on travel expenses when driving to and from work, as well as cutting costs for a family vacation or road trip. The recent shift in gas prices has been
Gas prices have plummeted over the last year, and many Oklahomans are taking advantage of the low gas prices so that they can spend money on things like food or bills. However many other Oklahomans, such as those working in the energy industry, are suffering because of the drop in natural gas prices. Photo by Ryan Naeve, The Vista.
viewed both positively for the increase in consumers’ spending money and negatively for oil and gas company layoffs. However, it is still possible for the job market to bounce back.
UCO concurrent student fills his truck with gas, “pumped” about the low gas prices. Photo by Cara Johnson, The Vista.
“Since we are spending less on gasoline maybe we will spend more elsewhere, creating new jobs in other sectors allowing those who were laid off to find new jobs,” said Roach.