ECHOES
Issue 6 | Volume 114 January 2015
The Independent Voice of Abraham Lincoln High School | Council Bluffs, Iowa | ALechoes.com
International price of gas falls
Photo illustration by Kelly Hickey
Andrea Milstead
Introduction to Journalism
D
eclining prices for a barrel of crude oil have led to the lowest gasoline prices since the end of 2008. Gasoline prices in the United States average $2.20 per gallon and locally, in Council Bluffs, gasoline prices have been seen as low as $1.85 as of Jan. 2015. Crude oil prices are the major factor in determining the price of a gallon of gas. Other factors include; supply and demand, refining costs, a geopolitical landscape, terrorist attacks, and unforeseen natural disasters. Lower oil prices have impacted economies all over the world. In the United States alone, consumers have saved over 14 billion dollars in 2014. Indonesia just announced it would no longer subsidize gasoline. India is gradually phasing out subsidies and plans to deregulate gasoline all
together. Russia is having a full blown currency crisis and Iran is having trouble funding Hezballah in Lebanon. OPEC (Organization of Petroleum Exporting Countries) is split on how to handle the situation. OPEC wants to control where oil prices are and the current situation is the reason they’re split on their next move. Falling energy prices are the main reason the Dow Jones Industrial and the Standard and Poors 500 Index are taking such a hit at a time of year that they usually do well. Large oil companies are a main component in many of the major stock market indexes. “Dropping oil prices help with money to invest in the stock market,” economics teacher, Myron Wilder said. “But it hurts people if they are invested in oil.” Lower energy prices are not the only reason for the decline in these indexes, as they have enjoyed seven straight weeks of gain. This
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is a trend that was bound to come to an end. Gas prices this low not only affect the world as a whole, but greatly impact the people in our own community. “It now costs me half what it used to cost me to fill my tank up,” Casino Cab driver, Troy Granger said. “It has raised my income slightly, but not by much.” Local drivers are saving money all over the place, including sophomore Alexis Gress. “Most of the money I earned from work was being spent on gas, and I couldn’t use the money for anything else,” Gress said. The extra money has impacted people of all economic standings. Not only people, but the environment is being impacted by the lowering oil prices. People are buying more gas because of the lower prices and that’s not the greatest thing for our air. The greater use of fossil fuels thickens the atmosphere
which is not favorable by most as a long term effect. With gas usage increasing, the amount of renewable power being used is dropping. That worsens our environment even more and hurts the companies of those renewable power sources. Current gas prices may look like glitter and shine on the surface but there are downsides to the situation as well. Americans are hopeful that gas prices will remain low. They should not expect for gas prices to remain this low as it is not profitable to mine and refine certain crude oil sources at these prices. According to Wilder, as less is spent on gas, more stuff can be bought from other businesses. The oil industry is hurting though because it’s expensive to get oil out of the ground so there is a decrease in oil production. Overall the drop in gas prices is not good for our economy, but good for the average American pocket.
Feb. 7:
Feb. 14:
Feb. 16:
ACT Testing Day
Valentine’s Day
President’s Day