The Consumer Energy Alliance has estimated that low oil prices provided a small direct boost to real gross domestic product growth in 2015, according to Bureau of Economic Analysis report released Friday on whitehouse.gov. According to the report, the CEA said substantial benefits to consumers outweighed the sharp pullback of investments among energy producers. An increase in oil supply globally was a factor in declining oil prices but the slowdown of global growth was also listed as a contributor in the report.
The CEA estimated that the decline in oil prices directly upped GDP growth by 0.2 in 2015, more or less. The report further said that because the U.S. is a net importer of oil, lowered prices boosted real income and consumption. The positive impact on consumption was offset, in part, by a sharp decrease in oil drilling and exploration.
Read the full report on whitehouse.gov.