Crashing Oil Prices Will Be Terrible ONLY For A Tiny Part Of The US Economy

The media propaganda campaign to get folks to feel sorry for the taxpayer subsidized, near tax-free profit gravy train than is oil and gas production in America is yet another lie on the loose that folks need to get their pants on over and chase before they ask for more subsidies.

Please, Mr. Oil Baron, stop pissing on folks and telling them it is raining.

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"The US Economy And Stock Market As A Whole Won't Even Notice. While oil and gas capex represents an increasing share of overall capex, it represents less than 1% of GDP (see yellow line in chart above). For the stock market, the 11.9% drop in expected energy sector profits will be more than offset by gains elsewhere. According to FactSet, analysts expect S&P 500 earnings to rise 8.6% in 2015.

There's no getting around the fact that lower oil prices are bad news for the oil sector. But what's bad for the oil sector is more than good for the rest of the economy and the markets.

"Consumer spending represents 68% of the US economy," Charles Schwab's Liz Ann Sonders noted. "Oil and gas capex represents about 1% of US GDP and less than 9% of US total capex (which in turn represents about 12% of US GDP). Therefore, the benefit of lower energy prices to the consumer and many businesses greatly outweighs the significant hit to energy companies and/or energy-oriented capex, especially in energy-oriented states.""


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(Blue line is annual national industrial Capex, Yellow line is energy sector % of national GDP)



http://www.businessinsider.com/energy-investment-a-small-share-of-gdp-2014-12