Gas Prices and the Economy

November 3, 2014

Gas prices fell below $3.00 per gallon this week, saving the average American at least $50 a month. What does an extra $50 a month mean you? For many, it makes all the difference in the world. It makes it easier to buy groceries, pay rent or to take the family to eat. For local governments and businesses who purchase large quantities of fuel, falling gas prices could also provide some needed relief.

Less than a decade ago, economists could not conceive that the United States would be an net exporter of energy, or that oil would ever be at $80 a barrel again. Both of those things are true as we approach 2015. Low gas prices are generally good for the economy, the American worker and small businesses. They should lead to spending in other categories and create a little wiggle room for families as we enter the holiday season.

So this is a good thing, right? Like so many things concerning economics, it is complicated. Too much of a good thing means there is a downside to dropping crude prices. Oil at $80 a barrel is considered good, but $70 may begin to have a negative impact on the booming oil and gas industry in the U.S., and right here in Ohio.

If you have a story about how falling gas prices are impacting you and your business please comment below or email us at info@columbusregion.com.

Kenny McDonald

  • Last week, two companies announced expansions that will bring a combined 70 jobs to the Columbus Region. Lubrication Specialties will invest $1.9 million in Morrow County while Sage Sustainable Electronics will invest $2.5 million in Franklin County. Thank you to both companies for their commitment to the Region.
  • This week, the Ohio Board of Regents will begin hosting meetings throughout the state to seek input from manufacturers about the funding for workforce development equipment. The Columbus Region meeting will be held on Thursday, November 6 at Tolles Technical Center. Industry participation is strongly encouraged to ensure funds are directed towards acquisition of machinery that will provide the greatest benefit to manufacturers. Click here to register.
  • The Ohio Manufacturing Institute has launched a new podcast, Manufacturing Tomorrow. The bi-weekly series will highlight the innovations and groundbreaking relationships that are embraced by leading manufacturers.
  • The Ohio Development Services Agency has launched the Ohio Career Exploration Internship Program, a partnership driven program between businesses and high school students. Employers may host up to three interns in a calendar year and can be reimbursed 50 percent of each intern’s salary, up to $5,000. Click here to learn more.