Low oil prices are a good thing, because it means lower energy costs of production for the majority of industries, not least the automobile and the logistics industries. Firms directly benefit from the decrease in their costs of production and provision of services. This has the effect of stimulating the aggregate supply and provides a stimulus for growth. Conversely, a sudden rise in oil prices due to a shrink in oil production is never good news, even though it definitely gives a big boost to the energy sector. A look through the history of oil price fluctuations confirms this notion, as this has been the subject of much economic research. Following an oil price jump of 10 per cent due to a contraction in supply, an economy (as typified by the US economy) typically sees its output (GDP) slowed by close to 1 percentage point. For a $15 trillion economy, that is a loss of $150 billion in potential wealth or economic growth. Conversely, there has never been much concern with oil price decreases following an excess in its supply.