Author: Prokhor Zakharov // Valentin Sigalov
We have all heard of the tumbling oil prices. It has affected all of us - we have all felt the impact on our pump bills. However, that is not the only area in which our lives are impacted. Oil is used all across our infrastructure. Energy is generated from burning it. Plastics are manufactured from it. Transportation of everything - humans and goods - is fueled by it. This means that energy, plastics, and much more becomes cheaper (in most cases, not for us, but for the people purchasing in bulk).
Unfortunately, this will have ramifications on the environment. First of all, vehicle use increases. People recognize the lower price of gas, which encourages them to travel. Even though their expenditures decrease, the laws of physics don't change and emissions increase. Vehicle emissions account for over 30% of United States pollution, so this does make an impact. This doesn't just apply to the United States, but the entire world. Also, statistics show that about 1 million more cars were sold last year than in 2013 - almost certainly due to the oil prices. Secondly, this would slow down research into energy efficiency. Progress is driven by necessity. So if there is no need for a vehicle to take on less gas, why make it efficient?
On the other hand, the oil price plunge has been touted by some as a "global growth elixir". Spending more always jump starts the economy, as money continually exchanges hands. However, according to a source, no real change has been noticed. After all, there may be more exchanges, but generally, the amount of money changing hands stays the same or even drops due to the prices.
CNBC - Plunge Effecting Economy
WSJ - Oil Price Tumble
Oilprice - Environmental Effect
KTVU - Plastics Oil Plunge
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