OPEC Maintains Output - Prices Decline

In an earlier post, see link, the disarray in the world energy markets was discussed in view of OPEC's upcoming meeting in November, 2014.  

That meeting is now over, and OPEC chose to maintain oil output.  The effect will be for world crude oil prices to continue their fall.  Today's stock prices fell for major energy companies.   

Much has already been written about the likely effects of the lower oil prices.   Transportation costs for many will decrease as the crude oil prices work their way through the refining and marketing systems.  Consumers will have more disposable income, and will likely spend that rather than save. Some, though, will pay down debt.  

Oil-based chemicals and derivatives will also see price reductions, which will also benefit consumers.  

The long-term impact on nuclear power plants, both new and existing, will be to make them more and more un-economic.  Natural gas price, in many countries, is tied at least loosely to the price of oil.  Falling oil prices mean falling natural gas price, and a nuclear plant will have ever more difficulty competing with the power price from the natural gas-fired plants.  This is especially true of the combined-cycle gas turbine plants with the highest efficiencies.  see link  

Roger E. Sowell, Esq.
Marina del Rey, California
copyright (c) 2014 Roger Sowell