Even if growth in the region did show signs of picking up in 2015 — and recent sharp
falls in energy prices should support growth, though put further pressure on lowflation — given structural constraints, ultimately growth is likely to be limited to the region's trend rate, somewhere between 1 % and 2 %.
In both cases, this primarily reflected recent
falls in energy prices.
(Another good question, which I won't get into, asks about regional variation in wage growth; outside of states hit by
the fall in energy prices, moodys.com reports that wages have picked up in most parts of the country.)
Consumers, rather than following the lead of the mass market media who were telling them that
the fall in energy prices presented a tax cut for them to spend, have elected to save for a rainy day.
The fall in energy prices came as Abbott blamed renewable energy for lifting retail electricity bills.
Not exact matches
Oil
prices might have bottomed as output
in the United States and other non-OPEC producers is beginning to
fall quickly and an increase
in supply from Iran has been less than dramatic, the International
Energy Agency said on Friday.
As oil
prices have
fallen, defaults
in the sector have risen — about a quarter of all corporate bond defaults
in 2015 were
energy related, according to Moody's — and that's made traders even more reluctant to buy.
The so - called core - core inflation index, which excludes food and
energy prices and is similar to the core index used
in the United States,
fell an annual 0.6 percent.
In the commodities space, oil prices are headed for their eighth consecutive week of falls on Friday, the longest losing streak since 1986, according to Reuters, after the news of a sharp drop in Chinese manufacturing increased worries over the health of the world's biggest energy consume
In the commodities space, oil
prices are headed for their eighth consecutive week of
falls on Friday, the longest losing streak since 1986, according to Reuters, after the news of a sharp drop
in Chinese manufacturing increased worries over the health of the world's biggest energy consume
in Chinese manufacturing increased worries over the health of the world's biggest
energy consumer.
The company, which had made its name providing investors with a steady income from its oil and gas wells, cut its dividend
in half as capital spending rose and
energy prices fell.
The share
prices of the world's two biggest wind turbine manufacturers have
fallen after the U.S. House of Representatives proposed whipping away tax credits for renewable
energy in order to pay for tax cuts elsewhere.
This billionaire inrnthe oil and gas businessrnsaw his pilernshrink somewhat this year withrnthe declining share
price of CanadianrnNatural Resources, the firmrnhe shepherded to the peak ofrnthe country's
energy market.rnEdwards, who is also the ownerrnof the Calgary Flames, has hadrnother issues on his mind, however — this
fall he has been anrninfluential player
in the NHLrnlockout negotiations.
But the defense contractor experienced a double whammy
in 2014 between
falling oil
prices (triggering cutbacks on
energy projects) and the substantial withdrawal of U.S. troops from Iraq, reducing the need for the company's services there.
Just ask the investors who thought
energy stocks were a screaming bargain
in the
fall of 2014 — just months before the oil
price collapsed.
First voiced
in the 1970s by Arthur Laffer, an adviser to the Nixon administration who came from the conservative Chicago school of economics, it was embraced by the likes of Ronald Reagan and Margaret Thatcher and, consensus has it, went a long way to alleviating the stagflation of that era (though
falling energy prices and interest rates, demographic shifts and yes, deficit spending contributed too).
Depending on where you live, there's legislation pending that will levy more regulations and taxes on fracking, which
in a time of rapidly
falling oil
prices could significantly hurt local
energy companies that provide jobs and work for small businesses.
The
energy sector
fell 1.1 percent on the back of a more than 1 percent drop
in crude oil
prices as the dollar remained near a four - month high.
Expectations were for
prices to
fall 0.4 %
in December from the prior month, with
prices expected to rise 0.1 % when stripping out the more volatile costs of food and
energy.
We predicted
falling prices would make solar
energy cheaper than fossil fuel
in most states; that was overly exuberant.
CALGARY — Cenovus
Energy Inc. (TSX: CVE) is raising $ 1.5 billion through the sale of 67.5 million common shares
in a move aimed at shoring up its balance sheet
in the face of oil
prices that have
fallen to half the level of June.
NEW YORK (MainStreet)--
Falling oil
prices could send property values tumbling
in Houston and other
energy - dependent cities but rising elsewhere.
Kolko's analysis found that job cuts
in oil - rich cities don't typically happen until about six months after
energy prices tank, and property values don't
fall until one or two years after that.
But now, Kolko expects home
prices in oil - rich communities to begin
falling in the next year or two unless
energy markets recover, although he added that it's «very hard to say how big or long the effect might be.»
Prices pared losses after the
Energy Information Administration released data showing U.S. crude inventories
fell by 4.6 million barrels
in the latest week.
Banks and utility companies slipped, and
energy companies took losses as oil
prices fell for the fourth day
in a row.
An economist who correctly predicted the
fall in oil
price this year has told CNBC that the U.S. government could look to bail out its
energy sector
in 2015 as the commodity's low
price starts hitting the country's economy.
But with
energy prices falling, Vladimir Putin's Russia has essentially been
in a recession over the past four years.
It's highly likely that population growth has slowed
in energy - producing areas since July 2015: more recent jobs data have shown that
falling oil
prices hurt
energy - sector employment.
There is typically a bit of a lag between
falling energy prices and their effect on consumer spending, but by Q3 12, declining
energy prices should be supporting real consumer spending; we look for 2.5 % consumer spending growth
in H2 12.
The financial crisis
in 2008, alternate sources of
energy, new discoveries especially
in the US and the lifting of sanctions against Iran have all contributed to the
fall in crude
prices.
With reports of producers asking suppliers for
price breaks to help them remain financially viable as
energy prices have
fallen, the modest decline
in energy stocks could well be just the beginning of a longer trend that will include dramatic revenue declines for most companies throughout 2015.
Spending on durable goods rose 0.8 %
in the month, but nondurable goods spending
fell 0.2 % on a 2.8 % drop
in energy prices.
But if you happen to live
in a region that's a big
energy producer,
falling oil
prices may soon take a bite out of your state's budget.
Energy companies, which have had to contend with
falling oil
prices, delivered more than 7 % EPS growth on a 3.5 % decline
in revenues.
ENERGY: Oil
prices fell back from spikes last week on fears over an escalation of strife
in the Middle East.
Shares
in energy companies
fell as the
price of U.S. crude oil declined.
According to Friday's report,
energy prices fell 2.4 %
in April from March, and were down 25.2 % over the last 12 months.
Energy prices fell by 3 percent over the month as gasoline
prices were 4.9 percent lower than their level
in February.
U.S. producer
prices fell in March for the first time
in seven months, weighed down by a drop
in the cost of services and
energy products, but the largest annual increase
in five years suggested inflation was rising.
When we first invested
in the
energy sector
in 2013 we assumed that the Organization of Petroleum Exporting Countries (OPEC) could not afford to let oil
prices fall.
«And
in the context of a
falling oil
price, it is precisely these kinds of high - quality defensive
energy stocks that tend to outperform.»
Despite ample wind and sun, some of the highest electricity
prices in the country, and the steep cost decline
in renewable
energy technologies, Puerto Rico has
fallen far behind other US regions
in renewable
energy investment, forming barely 2 percent of its generation mix.
ENERGY: Benchmark U.S. crude oil futures added 28 cents to $ 45.11
in electronic trading
in the New York Mercantile Exchange while Brent crude, the benchmark for international oil
prices,
fell 6 cents to $ 47.20 a barrel
in London.
With the cost of renewable
energy and lithium ion batteries
falling in price aided by regulation and technological advances, this level of capital destruction can not be allowed to happen again.
But analysts also failed to accurately gauge the impact of the recession on
energy use, and feed -
in tariffs [long - term contracts for renewable
energy at a fixed
price per kilowatt - hour] did not take into account
falling demand.
However, should slowing global economic growth or recession result
in a long - term reduction (three to five years)
in energy prices, then U.S. Silica and its peers will face the prospect of their current lucrative contracts expiring and themselves sitting atop literal mountains of frac sand, while demand may have
fallen off a cliff.
Unite, Britain's biggest union, has today (Tuesday 16 October) warned that the
fall in inflation is being threatened by greedy
energy companies whose
price hikes will re-ignite inflation putting further pressure on working families and the struggling economy.
Its
fall in support was partially reversed for five months from last September — a period when Labour MPs voted against attacking Syria and plans to freeze
energy prices and repeal the Bedroom Tax were announced.
Since the 1970's at least, the U.S. federal government has had an interest
in alternative sources of
energy, although funding for those efforts has risen and
fallen with economic conditions, fuel
prices, and political administrations, among other factors.
What has surprised many
energy experts is the dramatic
fall in the
prices that the RECs will have to pay to generators since the last round
in 1991.