Your 401-K May Be Fueling Gas Price Increase
DETROIT (WWJ) – The next time you get upset about rising gas prices, you might want to blame your own 401-K account.
A new study finds that gas investments have been a good deal for Michigan’s teacher and government employee pension funds.
The study, which was financed by the American Petroleum Institute (API), shows that oil and gas stocks accounted for about 12% of the returns for Michigan teacher and government employee pension funds. It also shows that the investments have been paying off for the pensions.
API economist John Felmy says many residents may have their money tied up in oil stocks and not even know it.
He says oil companies aren’t owned by space aliens. He says they’re owned by millions of Americans who have IRAs and pension funds says Felmy.
“It’s all going to come down to supply and demand conditions,what will happen on a world level with China, that’s booming, and buying more cars than we are, India and other developing areas and what will happen to supply. So, those are very big unknowns. I’m not in the business of forecasting, but it’s a highly cloudy crystal ball,” says Felmy.
“We could produce a lot more oil in this county, and dramatically lower our imports, that would lead to jobs, revenue for the governments and improved energy security, a win, win, win, situation if we chose to move forward,” Felmy adds.