Oil Prices

There will be a negative effect on the now sizable US energy sector, but the positive impact on the rest of the economy should dominate.

A decline in oil prices leads to redistribution of wealth within the US, which favors (sub)sectors with impaired balance sheet constraints.

Obviously, there are losers as well as winners, but the US economy benefits on net.

We are still net importers, right. But there could be second round effects, especially political, that could moderate or even reverse it.

Oil production investment is a negative, but reducing the cost of a raw input nets to positive, unless oil exports heavily dominate imports.

U.S. is a large net importer. Increased oil prices in the past have slowed GDP growth.

Costs would go down, Fed may keep rates low. But negative effects on oil exploration, production and potential future oil exports.

but not as much as in the old days because the economy is more energy efficient now and because we have become a significant producer of oil

The 1986 decline had little effect on real GDP. Oil prices don't shift production functions. Real income rises, but not real output.

There are potentially confounding general equilibrium effects but the US as a net importer of oil should benefit from increased fracking.

The U.S. econom remains strongly anti-cyclical in oil prices. Some industries suffer from lower prices, but they are dominated by winners.

For the average household this will be a like a tax cut, of course oil producing states suffer a bit, but overall this good news for the US

Ceteris paribus. And because the U.S is still a net importer.
-see background information here

-see background information here

Both because of quasi-fiscal stimulus and lower measured inflation.

The decline in price is less significant than the technological progress in resource extraction it reflects, which should promote growth.

But if drop is result of correct forecast of weaker world economic activity, it will be hard to identify the net benefit ex-post.

The US is still a net energy importer and the shock is largely a supply shock. But this will cause some reallocation away from shale

We have almost balanced trade in energy; the net effect will be very small (although there will be distributional effects).