Oil’s Fall Changes Fortunes of The World Economies – NYTimes.com

Oil’s Swift Fall Effects Tourism – NYTimes.com.

Well this is not my typical tourism comment, but the price of oil effects everything and especially tourism. Cheaper oil is great for travel but not if it sinks economies that generate travel.

This article is a detailed overview of who stands to gain and loos in the new environment of lower oil prices. it is interesting to note that the USA increase in oil production since 2008 is 4 million barrels a day – more that all Opec producers except Saudi Arabia.

The Hibernia Platform Grand banks Newfounldand

The Hibernia Platform Grand banks Newfounldand

Canada does not figure in the analysis. I expect Air Canada and Westjet flights will become more affordable, but with the federal government now loosing huge oil royalties, and the economy uncertain with oils decline, the question is who will have the cash to fly?. Is a question tourism officials and hoteliers are asking everywhere!

2 Comments

  1. And this remark i think put it into perspective Louisiana, which has a smaller and less diversified economy than Texas, is already feeling the sting of the price downturn because it relies on more oil and gas money for its operating budget. Louisiana loses $12 million for every $1 in decline in the annual average price of a barrel of oil, according to Greg Albrecht, the state’s chief economist.” http://www.nytimes.com/2014/12/27/us/falling-oil-prices-have-ripple-effect-in-texas-louisiana-oklahoma.html

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