Fossil-fuel prices fall; consumers enjoy lower costs

Associated Press

NEW YORK

These days, it seems whatever can be burned to power a car, heat a home, make electricity or ship people and goods around the globe is being sold at bargain-basement prices.

Prices for coal, natural gas, oil and the fuels made from crude such as gasoline and diesel are all far less expensive than they have been in recent years.

Consumers are rejoicing. Fossil-fuel companies are reeling. Countries that import energy, such as the U.S., China, Japan and those in the European Union, are getting an economic boost.

Exporters, such as Russia, Saudi Arabia and Venezuela are facing lower income and budget shortfalls.

The possible effect of cheap fossil fuels on the environment is unclear – low prices certainly make them more tempting to burn, but low prices can also help discourage exploration in sensitive locations and open the way for environmentally-friendly policies.

The recent price declines are a result of complex factors that have led to a simple outcome: There is more than enough fossil fuels at the ready than customers need.

“We just have too much energy hitting the world,” says Suzanne Minter, manager for oil and gas consulting at Bentek Energy, a division of Platts.