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Started By
Message
re: Low Gas Prices, People don't understand the Problems
Posted on 1/5/15 at 1:58 pm to tgrbaitn08
Posted on 1/5/15 at 1:58 pm to tgrbaitn08
Sure it's a cycle, but you can't be so confident that prices will go back to $100 a barrel in 5 months when it could easily take 10+ years. No one knows when they will go back up.
1
Posted on 1/5/15 at 1:59 pm to Dam Guide
quote:
I mean take a look at the coal industry. Those frickers got raped by fracking and natural gas. Coal plants of 100s of people replaced by a skeleton crew at a CC plant.
Have they increased exports to compensate, though?
Posted on 1/5/15 at 1:59 pm to Dam Guide
quote:
coal industry.
affected a lot of the marine companies that were moving coal on the inland waterways.
Also, look at the steel industry as well.....all been replaced by that Chinese steel...nothing is make like it used to be
Posted on 1/5/15 at 2:00 pm to TheIndulger
quote:
prices will go back to $100 a barrel in 5 months
when did I say that?
Posted on 1/5/15 at 2:01 pm to TheIndulger
quote:Yayyyyy Capitalism!!!
Another industry that probably loses at low oil and gas prices is alternative forms of energy. Suddenly people aren't that interested in that expensive hybrid when gas is less than $2/ gallon.
Let basic economics choose the winners and losers, not the autocratic power of the Emperor.
Posted on 1/5/15 at 2:07 pm to terd ferguson
quote:The world needs ditch diggers too.
Sometimes you just gotta thin out the herd...
Posted on 1/5/15 at 2:07 pm to tgrbaitn08
You said gas would be 3.50-4.00/gallon, which is about right for $100/bbl oil.
Posted on 1/5/15 at 2:11 pm to TheIndulger
It will increase jobs at wally world and chili's as Americans will spend a ton more.
instead of rouging it in the oil patch, the workers can learn how to hostess or flip burgers.
instead of rouging it in the oil patch, the workers can learn how to hostess or flip burgers.
Posted on 1/5/15 at 2:15 pm to Clint Torres
quote:a keg of Natural Lite was around 30-35 bucks in the late 90s. This was also when gas was super cheap. as the gas doubled and tripled the price of beer also double and tripled. All because it takes fuel to transport everything.
I'd argue that cheaper gas over an extended time would increase jobs in other sectors.
cheap energy will lower the cost of nearly everything..
Posted on 1/5/15 at 2:21 pm to AbitaFan08
quote:
The people yelling:
"People should be paying more for gas so I can still get a paycheck!"
tend to be the same people yelling:
"Hell no people shouldn't get my hard-earned money to subsidize their income!"
And yet they fail to see the contradiction in their statements.
This.
Posted on 1/5/15 at 2:58 pm to America
I hope it doesn't affect the software industry! 
Posted on 1/5/15 at 3:17 pm to America
Well now the O&G people can see how the rest of the country has been doing for 5 - 6 years.
Posted on 1/5/15 at 3:24 pm to MrSmith
I work as an engineer for a service company. When the oil price drops like this, the first to go are the contract WSMs and contract pumpers. These are the easiest to fire and rehire when needed.
The second thing to cutback on is well servicing for lower boe wells. I have an inbox showing cancelled jobs due to revenue/boe not high enough to spend money on the well.
The cost to drill and complete a well are sunk costs and not looked at when deciding to produce. Economics are looked at when the well stops producing and cash is needed to service the well and compared to revenue obtained from this cash outlet. Lower producing wells do not get returned to production.
You'll start to see a reduced production rate as more wells will be shut in instead of a return to production. This is when you'll see oil starting to rise again. Give it six months and the price of oil will be back.
The second thing to cutback on is well servicing for lower boe wells. I have an inbox showing cancelled jobs due to revenue/boe not high enough to spend money on the well.
The cost to drill and complete a well are sunk costs and not looked at when deciding to produce. Economics are looked at when the well stops producing and cash is needed to service the well and compared to revenue obtained from this cash outlet. Lower producing wells do not get returned to production.
You'll start to see a reduced production rate as more wells will be shut in instead of a return to production. This is when you'll see oil starting to rise again. Give it six months and the price of oil will be back.
Posted on 1/5/15 at 3:25 pm to upgrayedd
quote:
Have they increased exports to compensate, though?
Coal companies in Kentucky and West Virginia are a shell of their former selves, and that is never changing except to continue to decline unless a President comes along that doesn't have an agenda item titled "war on coal".
Posted on 1/5/15 at 3:28 pm to The Goon
quote:
. Give it six months and the price of oil will be bac
It's 2015.
Hopefully by then we'll have Mr. Fusion so we can run our cars on garbage
Posted on 1/5/15 at 3:33 pm to America
Some complete idiots up in this thread
Posted on 1/5/15 at 3:35 pm to UFownstSECsince1950
quote:
Americans getting cheaper gas is wayyyy more important than a couple disposable oilfield jobs
Not really.
OPEC is hammering oil prices low, which will halt a good bit of local exploration and drilling, especially hire cost shale operations. After a few months, after production outside of OPEC has dropped, they will let the oil price rspindly increase, which will shoot up fuel prices back to $2.80/gal+
..and without local the local production (which was shutdown/slowed) to offset it, there will be nothing we can do about it.
Posted on 1/5/15 at 3:36 pm to America
So I should pay higher gas prices so ppl that idk can keep their jobs? Don't think so.
Posted on 1/5/15 at 3:36 pm to crimsonsaint
You live in LA?
Posted on 1/5/15 at 3:38 pm to LSUAlum2001
quote:
..and without local the local production (which was shutdown/slowed) to offset it, there will be nothing we can do about it.
So those companies should take a loss for America and not slowdown/shutdown production is what you are saying
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