Because the US still imports 5 million barrels/day of oil, and - TopicsExpress

Because the US still imports 5 million barrels/day of oil, and consumers spend a substantial share of income on energy, cheaper oil boosts GDP. Every $10/bbl decline shaves 25 cents off the price/gallon of gas and reduces oil imports by $50 billion/year. That will boost GDP by almost half a percent. If oil falls below $65/barrel, the benefits remain positive but shrink as US drilling and exploration activity will fall. Elliot F. Eisenberg, Ph.D. GraphsandLaughs, LLC [email protected] Cell: 202.306.2731 econ70

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