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 budget shortfalls and lower income.
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 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 fuel at the ready than customers need.
“We just have too much energy hitting the world,” said Suzanne Minter, manager for oil and gas consulting at Bentek Energy, a division of Platts.
Lower energy prices are good for consumers, giving them more money to spend, and for the broader economy. Consumer spending accounts for about two-thirds of the U.S. economy.
While sales at retailers haven’t spiked, as economists thought they might, consumer spending is growing faster than the overall economy, suggesting lower fuel prices have helped.
“It’s not this huge boost in spending, but it is very good news, relieving pressure at a time when wage growth is not very strong,” said Nariman Behravesh, chief economist at IHS.
He calculates that the decline in gasoline prices is saving customers about $800 a year compared with what they were spending between 2010 and 2014.
But energy company profits and share prices have been crushed. Quarterly earnings dropped 52 percent at Exxon and 90 percent at Chevron, the companies announced last week.
On Monday, Alpha Natural Resources became the fourth U.S. coal company to seek bankruptcy protection in 15 months.
The lower revenue and profit are taking a toll on employment. The U.S. coal industry has lost 21,000 workers since 2011, according to the Labor Department, a decline of 24 percent.
Chevron, BP and Shell last week all announced workforce reductions. Layoffs at three of the biggest oil and gas service companies — Schlumberger, Haliburton and Baker Hughes — are approaching 60,000 since the price decline began.
