Last month global oil prices had fallen to significant new lows, leading to shockingly deleterious revenue shortfalls in many countries which rely on the exportation of energy for their economic well-being. Meanwhile, North American consumers have been enjoying substantial savings in the purchase of petroleum fuels for such needs as home heating or for the operation of motor vehicles, to name just a few of the areas where direct savings have materialized due to plummeting oil prices.
It wasn’t that long ago that we were seeing stable (and elevated) oil prices at about $110 per barrel. Since last June though, prices have been cut in half as new sources of North American energy have been exploited and as there has been less demand as a result of slowed or arrested economic growth in many parts of the world.
Despite the pain that is felt in some sectors, many economists believe that there are winners in a time of cheaper oil and they’re not just consumers. Though they estimate that the economic activity of oil companies and related businesses could slow by about $150 billion this year, they also note that in other areas of the economy an increase of around $400 billion is quite conceivable. Just looking at the numbers it becomes clear that the good outweighs the bad (for now). This is all calculated to have a net effect that is twice the annual value of the payroll tax cuts that occurred in 2011 and 2012, both of which spurred sizeable boosts to consumer spending.
One company that certainly can benefit from lower oil prices is Keystone Threaded Products Company, a family owned and operated firm that has been manufacturing quality threaded parts since 1920. It takes energy for Keystone to manufacture their line of standard threaded products. Contact Keystone Threaded today to see how you can enjoy both product quality and the substantial cost savings from lower oil prices when you stock up on their top-notch threaded parts.