re: Oil dive deepens to 12-year low; could hit $20 on China fears

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What do technical levels even mean?

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It's a trading term.

Hedge funds, certain banks, asset managers, etc. have large plays for crude futures, and they set triggers around certain prices (which tend to be pretty similar across firms) to get out of positions if it looks like prices are crashing. That, in turn, sets off more firms to get out of positions as the price keeps crashing.

Same thing happens on the upside, BTW.

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very true, these are guys that are used to making good livings

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I worked for Schlumberger when I was in my 20's. I was making sick money... then the bottom fell out of the rig count in the Gulf. They kept me on my base salary and sent me back to school. I went to Silicon Valley afterwards and haven't thought much about O&G since.

There are going to be so many tears shed for new Petroleum Engineering grads this May

Rice farming is huge in California(2nd in country behind Arkansas) and they are just tapping into the crawfish industry there too.


it wouldn't be a bad deal to get into on the ground floor there

So, SoCals climate supports a dual crop like crawfish/rice?

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And O&G is isolated to certain areas, whereas the Healthcare numbers you state are for the entire US. Look at areas heavy in O&G and you will see that oil likely out earns healthcare in that area. And the 3 trillion spent is not indicative of bringing in outside money. That 1.2 trillion was spent in only those areas where the O&G industry exists, but the money came in from the entire US. So that's a net positive for the region's economy.

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That is one of the most simple minded statements in this thread. O&G employs 9.9% of the Houston workforce or 107,900 people in Houston. Healthcare employs 318,000 people in Houston. Neither industry can support Houston and Houston doesn't run on one industry. It runs on them all and it takes them all to make Houston. If Houston ran on O&G it would be NOLA and not Houston.


You are way off base if you think NOLA runs on O&G. They all moved to Houston years ago. You are also Naïve if you think that the employments statistics mean anything regarding the income brought in from these industries. I know big money is spent on Healthcare, but what percentage is truly bringing new money into an economy. That 200 million my department did last year brought money into South Louisiana from outside sources (Mostly from Houston based oil companies). That's a net economic positive for South LA. I don't think healthcare at any level is pulling in that kind of revenue from outside sources.

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1. I don't give a flying f**k about Houston's economy. Overall healthcare is a bigger industry for the US than oil is so investing in healthcare is a good way to diversify an economy.
2. There is no such thing as new money in or old money out etc. There is just money and healthcare is a money maker right at the moment.
3. I hope oil goes to $20 and stays. I love <$2/gal gas and ~$1 off road diesel for the family farm, and cheaper fertilizer made from the oil.

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I guess there are a lot of people that don't remember the 80's in Louisiana and Texas.

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Which, funnily enough, was one of the best times economically for the U.S. since the Second World War.

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You are way off base if you think NOLA runs on O&G. They all moved to Houston years ago. You are also Naïve if you think that the employments statistics mean anything regarding the income brought in from these industries. I know big money is spent on Healthcare, but what percentage is truly bringing new money into an economy. That 200 million my department did last year brought money into South Louisiana from outside sources (Mostly from Houston based oil companies). That's a net economic positive for South LA. I don't think healthcare at any level is pulling in that kind of revenue from outside sources.

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My company, in the Chicago office alone, brought in almost a half billion in healthcare consulting last year.

I realize that some people that post here are not from Louisiana or Texas, but this is still primarily a Louisiana centric board. This will not be good for any industry that resides or does business on the Gulf Coast.

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O&G contributes to the national GDP, services, including healthcare, do not. Manufacturing declines of any type are not regionally isolated, they all impact GDP.

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Another dumbass statement. Some of you people just do not understand economics.

Healthcare is 1/6th of the national GDP.

Everything from services, consulting, tech, outsourcing, systems management, and on and on - there are entire sub-industries centered around this stuff.

Thinking that a commodity or finished product is the only way to produce economic activity is 19th century.