So, the tax bill passed. As I talked about last week, drillers will now be allowed to extract oil in an area in Alaska. This area is a wildlife refuge. So I hope that the drillers are mindful of these animals. I’m not sure companies are mindful of wildlife, however. In the Amazon rainforest, companies are cutting down trees that are vital to the wildlife population. I support finding new places to drill, but I want to make sure that it doesn’t disturb, or worse, destroy the local wildlife population. That being said, we are entering a new era in American energy.
Oil prices have dropped. I’ve never loved going to the gas station. But now I don’t have to worry about paying over $4 a gallon. Also, when I want to book a flight, I enjoy looking these days. This is because the price of airfare has greatly dropped. This is because oil is cheap! Or at least it’s more affordable than it was a few years ago. Airline companies save money on oil. Therefore, they pass these savings on to the traveler. Imagine what would happen to an airline company if they wouldn’t lower their prices, while the other airlines did lower their prices. Would any traveler want to fly on the expensive airline? My guess is no! The only travelers on the expensive airline probably have some kind of company discount or miles rewards program.
This new area of drilling will keep oil prices low. As a matter of fact, oil prices might go even lower. Gas prices might hit a historical low, which is always a great thing. The more money Americans have, the more they will spend. This would assist in stimulating the growth of the economy, which is a constant goal of politicians and business leaders.