From Teeka Tiwari, chief analyst, Mega Trends Investing: The Saudis have watched their oil exports to the U.S. drop by 34% since 2013. Not only that, but they fear our growing energy independence will turn us into the world’s next great oil exporter. This fear has led them to declare a trade war on the U.S.

How else can we explain their decision to refuse to cut oil production? How else can we explain their charging the U.S. less for crude oil than they charge the Chinese?

This action is causing the price of oil to plummet. Oil has dropped from a high of $102.53 per barrel to a low of $53.73. It’s also devastated the stocks of American oil producers. Everything from the oil majors to the small independent shale gas players have been crushed.

But while this has been bad for oil companies, this trend has been great for the American consumer and for nearly all other businesses.

When oil and natural gas are cheap, it acts like a pay raise for the American consumer. According to The Washington Post, American motorists are saving $630 million per day compared to what they paid for gas in June. If oil prices stay this low for a year, Americans will save $230 billion.

Those extra savings will kick off a brand-new consumer-spending spree. All of those energy savings result in higher consumer spending, which leads to higher GDP growth and higher corporate profits.

That consumer spending is going to show up as increased demand for manufactured goods. The American Chemistry Council thinks that this demand could boost chemical sales by 25% over the next five years. It expects industry shipments will increase to $1 trillion because of the price advantages offered by cheap shale gas.

But it’s not just individuals who benefit. Corporate profit margins increase as well. Not to mention all the money that corporations save from having to pay less for their considerable energy needs.

Bottom line: Cheap energy is very bullish for the U.S. economy. The world is not ending… so don’t give in to irrational fear. Stay long U.S. equities and enjoy this wildly bullish tailwind. (You can click the image below to listen to my free audio breakdown on how to stay calm in the face of negative headlines like crashing oil.)