How The Recent Saudi Oil Attack Can Affect Gas and Oil in the U.S.

How The Recent Saudi Oil Attack Can Affect Gas and Oil in the U.S.

Terrorist-controlled drones dropped explosives on several oil refineries in Saudi Arabia. This shut down oil production for some Saudi oil producers and disrupted oil supplies around the world. The damage will take months to repair, and oil production will be reduced for the foreseeable future. How Will This Affect Us? This has already translated into higher gasoline prices here at home. Some regions have seen a twenty to thirty cent rise in prices. While the Saudis struggle to repair the damage to their refineries, many fuel-related prices will remain higher than usual. Whenever oil prices rise, it directly affects transportation costs. This includes airfare, gasoline prices, and the cost of transporting goods throughout the world. Groceries, household items, and heating costs will probably rise to reflect the increase in transportation costs.  What Can I Do? It pays to tighten the belt, figuratively speaking. We can streamline our budgets to allow for higher gas prices. This may mean replacing some expenses with cheaper alternatives. We can rearrange other daily routines, as well. Travel plans may change for more local fare. Reserving airline tickets as early as possible will yield the highest savings on those. Buying local products will save on transportation expenses. Practice fuel-saving driving habits that save gas. These include observing slower speeds with a lighter foot on the brake pedal. Ridesharing can cut commuting costs in half. Turn down the heat by one or two degrees. Carry a sweater with you as the weather cools. Consider which items you can buy in bulk or on sale. Further Consideration Some Saudi oil production will be back online within two...
How Could The New Tariffs Affect The Gas And Oil Industry?

How Could The New Tariffs Affect The Gas And Oil Industry?

For many years, Mexico and the United States have had an extremely stable trade alliance. In the last year alone, roughly $345 billion in United States goods were imported into Mexico while Mexico sent $265 billion worth of goods to the United States. Thanks to increasingly high Chinese tariffs, more and more American companies were working with Mexican manufacturing industries. One of the most common forms of trade has been getting raw goods from Mexico to refine them and then ship them back to sell to the Mexican public. Unfortunately, this mutually beneficial relationship seems to be coming to an end. The current government has been threatening to increase tariffs on Mexican imports as a reaction to fears about illegal immigrants. According to Twitter posts from the president, there are plans to put a 5 percent tariff on Mexican imports by June 10 and raise it to 25 percent by October. So far, it is unclear how these tariffs would do anything to reduce illegal immigration. This plan has been met with a lot of concern from economists, with economist Katheryn Russ explaining that these tariffs would mean the United States would essentially be taxing themselves on their goods. The oil and gas industries will be some of the hardest hit industries if these tariffs go into place. The United States currently purchases over 700,000 barrels of crude oil from Mexico each day. Just a five percent tariff would raise costs by $3 a barrel. The higher prices would hurt companies, who would most likely pass on the rise in costs to consumers. As the chairman of Mosaic Resources...