for U.S. Economy
Consumers will spend more than $400 billion on motor fuel by the end of September on an annualized basis, up 36 percent from two years ago.
Can low oil prices tip the economy into a recession? Not on their own, but the fact that a key sector that was instrumental in the post-2008 economic recovery is suffering is worrisome.
The massive drop in crude oil and gasoline prices has been a huge boon for the American consumer, but it has come at a cost—U.S. motorists have been driving more, furthering a rebound in demand and boosting the country’s reliance on imports of both crude and refined products while also mitigating recent gains in fuel efficiency.
For the first time ever, natural gas has overtaken coal as the U.S.’ top source for electricity generation, a trend that has large implications for the country’s electricity sector.