Lew: Low oil prices are ‘like a tax cut’

Treasury Secretary Jack Lew said on Thursday the recent plummet in oil prices is “like a tax cut to the economy,” and is a clear positive for the U.S.

In an interview with CNBC, Lew called the low oil prices that have concerned some producers a “net positive.”

{mosads}Despite the move by the Organization of the Petroleum Exporting Countries late last month to not cut production, which sent oil prices in the U.S. falling even further, Lew said he isn’t worried about a long-term slowdown to the nation’s energy boom.

“Long-term future prices reflect there will be trend back toward normal,” Lew said. “But in short term we are seeing a U.S. economy that is growing with increasing strength and lower energy prices are going to be a boost to consumer demand and confidence.”

Lew said that he doesn’t expect long-term projects to be heavily impacted in terms of timing.

“I think for shale projects don’t expect you will see reduction in production. I think you see some stretch out of developing projects,” he said.

Overall, Lew said the growth in energy independence in the U.S. and energy security is a “clear positive.

“I think it is always a great success story that we are now producing oil at the quantity that we are now,” Lew said.