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Volume 82 ◆ Issue 4
Th u r s d ay, F e b rua r y 2 5 , 2 0 1 6 News
Gasoline, Oil, and the World Economy By Joseph Carew
Staff Writer/Columnist
Parlor on the Market Page 3
A&E
Spires re-opens submissions Page 7
Sports
Womens Basketball advances in playoffs Page 11
Five dollars has suddenly become gas money again; more than two gallons can flow into your car before the pump eagerly shuts off. Cheaper gas prices are typically celebrated by the public, but perhaps this enthusiasm should be replaced with a more uneasy feeling. Gasoline is derived from crude oil and the former’s price is heavily dependent on the latter’s. Since the beginning of 2016, the price per barrel (PPB) of crude oil has collapsed below $30. This comes in the wake of June two years ago, where the PPB was well over $100. Such a dramatic difference has had catastrophic effects both within the United States and around the globe. To help quantify some of these effects, journalist Jl Yastine writes in a piece on the thesovereigninvestor.com, “Oil service companies Baker Hughes, Halliburton and Schlumberger have already laid off over 50,000 employees. But it’s not just energy company employees who are impacted. The companies that
supply fracking equipment, employee housing, restaurants and consumer services all feel the pinch, and will follow suit and layoff tens of thousands more employees. Many of these businesses will have to close.” As Matt Egan of CNNMoney puts it, “Cheap oil is great for consumers but its dramatic downfall
continues to alarm investors who fear it signals that something isn’t quite r i g h t about t h e health of the broader economy.” The impact goes on past our shores and, due to the world’s reliance on oil, this resource
makes up one-third of the world’s energy sources. Companies affiliated with it make up a significant part of the most globally traded stock markets. In the month of December 2015, the Dow Jones Industrial Average, which is the stock that represents the interests of dozens of companies, hovered roughly between 17,250 and 17,800 points. However, early January of this year was when oil took its most dramatic fall in 2016, and has dropped between 15,750 and 16,500 points, according to Yahoo Finance. Countries reliant on oil for revenue, like Azerbaijan and Venezuela, have been affected negatively by lower crude prices, and a s these low prices continue, countries edge closer to economic disaster. “For most of the world, and even most emerging markets, cheaper oil should only boost economic growth. For the oil exporters, however, it is a catastrophe,” Matthew Lynn
writes on marketwatch.com. Lynn also notes in the same piece, “The International Monetary Fund is discussing a bailout of Azerbaijan, hard hit by tumbling oil prices. Venezuela is out to go bust — again — for the same reason. Ecuador looks about to go the same way. More important countries may follow them — most significantly Russia and Saudi Arabia. Neither of them looks solvent for much longer with commodity prices at these very low levels.” Factors for the increase in Supply Numerous factors have lead to this downturn in the oil industry. To oversimplify it: supply and demand. To explain it a little better: there has been an enormous increase in supply with a relatively small decrease in anticipated demand, or as Moneyinstructor. com puts it: “The basic laws of supply and demand have a strong fundamental impact on the price of crude oil, which eventually dictates the price of other, refined oils. But, in addition, the perception of increased or
Gas prices continued on page 3
Op-Ed
Press space rental renewed by SGA
Sports Illustrated puts plus size model on cover Page 4
Campus Life
By Idalis Foster
Senior News Editor
Photo by Liz Quirk/The Beacon
Barbie introduces new body types Page 8
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The second round of the first-ever MCLA cook-off kicked off last night! This competition, modeled after the TV show Chopped, will have three contestants competing for culinary excellence. Competitors will be given a mystery ingredient that they must include in their recipes. The contest will be held Wednesday afternoons in the marketplace. The winner will go on to face last week's winner, Gascard Gaston, in the final round.
Contestant profiles on page 9
The rental of the Press Gallery space adjoining Gallery 51 has been renewed through June 30 for clubs to book events, fundraisers, and more. Currently, the Black Lives Matter exhibit is being held there, but after February the space will again be open for any club to use. Performance groups and clubs on campus have been encouraged to consider this space, located in downtown North Adams, as a way to connect with the community by holding events off campus. Already a couple of clubs, including Dance Company, are looking into booking the Press Space for future events. This is the first semester that SGA has taken on the cost of rent for this space, a total of $1,500 for the next four months, though the idea was originally initiated by Student Affairs. Senior Kelsey McGonigle, coordinating vice president of SGA, is optimistic about this decision and the possibilities it holds for clubs to gain a presence in the community.
“In the past, clubs have come to SGA saying that they don’t have enough space on campus,” McGonigle said. “We decided to rent the Press Space to give clubs different options and different avenues to hold events. Plus, now they have extra space to use.” At their most recent meeting, SGA made the final decision to back this venture after hearing from Celia Norcross, director of student development, and junior Bryanna Bradley, co-president of Dance Company. Norcross emphasized urgency in the matter, as renting the space gives clubs priority over local businesses and organizations, while Bradley wanted to learn more about the space to bring back to her e-board. In order to book the space, e-board members need to contact senior Gary Lavariere who is the one dealing with these club reservations. According to Lavariere, there are no restrictions on the space as of right now. “There are arts exhibits in the space but they are strictly 2D, on the wall exhibits. I was told that
Event space renewed continued on page 2