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  • Super User
Posted

Holy Smokes ~ !

 

I'm may need to redo my entire portfolio . . . . .

 

That is, if I actually had a portfolio . . . . .

 

Still, loving the $1.85 per gal

 

A-Jay

  • Super User
Posted

Um, I'd like to see it go back up.  I can buy more gas at $3 a gal then I can at $1.85 a gal if I'm unemployed.  Not a great time to be in the offshore oil industry as times are lean and extremely tuff right now.  So I know you like them low oil prices, but I'm hoping it goes back up to about $75 a barrel so the GOM starts picking back up and drilling returns back to where it was in 2014.

  • Like 4
  • Super User
Posted

Um, I'd like to see it go back up.  I can buy more gas at $3 a gal then I can at $1.85 a gal if I'm unemployed.  Not a great time to be in the offshore oil industry as times are lean and extremely tuff right now.  So I know you like them low oil prices, but I'm hoping it goes back up to about $75 a barrel so the GOM starts picking back up and drilling returns back to where it was in 2014.

 

BOO ~

:bad-idea-014: 

A-Jay

  • Like 2
  • Super User
Posted

Um, I'd like to see it go back up.  I can buy more gas at $3 a gal then I can at $1.85 a gal if I'm unemployed.  Not a great time to be in the offshore oil industry as times are lean and extremely tuff right now.  So I know you like them low oil prices, but I'm hoping it goes back up to about $75 a barrel so the GOM starts picking back up and drilling returns back to where it was in 2014.

 

 

There are a lot of people unemployed & will be more if it goes to $30 & stays there any length of time. 

  • BassResource.com Administrator
Posted

^^  This ^^  Those low prices are designed to drive U.S. production out of the market, and bring back its dependancy on OPEC oil.

  • Like 4
  • Super User
Posted

^^  This ^^  Those low prices are designed to drive U.S. production out of the market, and bring back its dependancy on OPEC oil.

Being on the front lines of the GOM offshor sector, I can tell you since late last year it has almost brought things to a halt.  A LOT of people down here in Louisiana are hurting, not just offshore workers, but the entire support system and local communities around it that depend on the offshore industry.    

  • Super User
Posted

Being on the front lines of the GOM offshor sector, I can tell you since late last year it has almost brought things to a halt.  A LOT of people down here in Louisiana are hurting, not just offshore workers, but the entire support system and local communities around it that depend on the offshore industry.    

 

Sounds a lot like what happened with the auto industry ~

 

Places in & around Detroit for instance Got Hammered Hard.

 

A-Jay

  • Super User
Posted

Sounds a lot like what happened with the auto industry ~

 

Places in & around Detroit for instance Got Hammered Hard.

 

A-Jay

Thinking I'm gonna wait on that bass boat I want just a little(lot) longer I want.

  • Like 1
Posted

Um, I'd like to see it go back up.  I can buy more gas at $3 a gal then I can at $1.85 a gal if I'm unemployed.  Not a great time to be in the offshore oil industry as times are lean and extremely tuff right now.  So I know you like them low oil prices, but I'm hoping it goes back up to about $75 a barrel so the GOM starts picking back up and drilling returns back to where it was in 2014.

I'll pass on that logic of high gas prices....

  • Super User
Posted

I'll pass on that logic of high gas prices....

It's is what it is.  When the industry you work in isn't firing the way it was and the possiblility of not having a job or income coming in, it doesn't matter how cheap gas is if you don't have an income which to purchase said cheap gas.  I understand low gas prices are great, but if you look at the whole picture it doesn't fair well when the economics trickle down into other parts of the economy.  When home sales were booming, housing and constuction was strong, but when the market tanked, all the people in those trades took a hit including all the suppliers of building goods.  It was great for people wanting a cheap house, but I'm sure if you asked the people that built them if they wanted cheap housing or a job building, they would choose to continue to work in their profession and trade.  That's just a logical way to look at it from the inside.  Until you're in that position you'll never understand that logic.

  • Like 2
  • BassResource.com Administrator
Posted

That's not a fair statement.  I'm not in that profession, but I fully understand exactly what OPEC is doing, and why, and it's affects on the U.S. oil industry.  I saw this coming over a year ago.

 

While it's nice to see low gas prices for a change, I also cringe because not only do I know it's impacts, but also know it's temporary.  All that from some dude that's not in the industry.  Fancy that.

Posted

It's is what it is.  When the industry you work in isn't firing the way it was and the possiblility of not having a job or income coming in, it doesn't matter how cheap gas is if you don't have an income which to purchase said cheap gas.  I understand low gas prices are great, but if you look at the whole picture it doesn't fair well when the economics trickle down into other parts of the economy.  When home sales were booming, housing and constuction was strong, but when the market tanked, all the people in those trades took a hit including all the suppliers of building goods.  It was great for people wanting a cheap house, but I'm sure if you asked the people that built them if they wanted cheap housing or a job building, they would choose to continue to work in their profession and trade.  That's just a logical way to look at it from the inside.  Until you're in that position you'll never understand that logic.

Many of us have been in a similar situation. Nothing unique...just a different industry. 

Every person since the beginning of civilization has come across hard times, for whatever reason.

Your final statement is one sided. As would be anyone's in that predicament...

Posted

Holy Smokes ~ !

 

I'm may need to redo my entire portfolio . . . . .

 

That is, if I actually had a portfolio . . . . .

 

Still, loving the $1.85 per gal

 

A-Jay

 

Pd $1.75 down here in VA today...lovin' it but the job loses due to lower oil prices may be greater than an economic bump from lower prices. Also, don't forget oil prices are lower because Saudi Arabia has been trying to kill our fracking industry, which they are succeeding at. Once the marginal producer is down and out expect Opec to raise prices quick and fast.

  • Super User
Posted

Pd $1.75 down here in VA today...lovin' it but the job loses due to lower oil prices may be greater than an economic bump from lower prices. Also, don't forget oil prices are lower because Saudi Arabia has been trying to kill our fracking industry, which they are succeeding at. Once the marginal producer is down and out expect Opec to raise prices quick and fast.

 

I have Zero control over any of that and knowing the reasons why unfortunately can't make this situation better either. 

 

I don't wish ill will on anyone, nor do I make light of this situation.  But if petrol prices were SKY HIGH while the super powers were duking it out - I can't believe that would somehow be better for anyone - working or not.

 

A-Jay

Posted

 But if petrol prices were SKY HIGH while the super powers were duking it out - I can't believe that would somehow be better for anyone - working or not.

 

A-Jay

 

And this is the catch-22; low oil prices are great for the individual (oil industry worker excluded) but on a macro level the benefits "may not" outweigh the cons in the U.S, the jury is still out. The problem you point out is that "oil" prices are highly politicalized. It really is a global game of chess with the consumers the pawns.

 

For an extreme example look at Venezuela, their socialist society depends on oil around $90/barrel in order to provide all the social benefits for ruling party to buy votes for next election.  They are a basket case with oil at current prices even though gasoline for consumer is dirt cheap.

 

   "Prior to the oil price crash, exports of that commodity accounted for roughly 96 percent of Venezuela’s export earnings, 45 percent of budget revenues,      and 12 percent of national GDP. With Venezuelan GDP around $400 billion by purchasing power parity, that means that the oil industry accounted for just under $50 billion in annual economic activity, or roughly $1,600 in annual income for every man, woman, and child in the country (based on ~$13,500 in GDP per capita)."

 

It is just like debt, in a debt-centric society like the U.S., an individuals debt/low savings can be very bad and if left unchecked  disastrous, but without individuals taking on debt/saving less our economy will grind to a halt, albeit temporarily, until a new equilabrium is achieved.  In long run low debt/higher savings is always better, but in short term it would be hard on macro economy as we sit today.

 

Whether oil is low or high, there will be winners and losers. The question becomes is it net benefit or loss for individual and larger economy.

  • Super User
Posted

*** for tat..

This month it's low oil, next month it's a higher rate for mortgages..

You gotta take the cheaper prices when you get a chance

  • Like 1
  • Super User
Posted

The pendulum swings, back and forth, back and forth.

 

I remember the ultra high interest rates on loans when Jimmy Carter was president.  Bad for those who had to borrow.  Great for those who had saved all their lives and were now getting great interest on their savings.  Now, interest rates are at record lows, good for the borrowers but bad for those who are now depending on their savings for some of their living expenses. 

 

When oil prices were sky high, it was bad for the consumer.  Prices on everything went up.  The trucking companies either raised their rates or added surcharges (it amounts to the same thing), that were passed on to the consumer.  It cost consumers more to go to work and run errands, reducing their "disposable income", which in turn hurt the merchants. 

 

Now with prices low, we are told it hurts the economy.  So, high prices hurt the economy.  Low prices hurt the economy.  I suppose it depends on whose economy we are speaking about.
 

  • Like 5
  • Super User
Posted

OPEC can kiss my tush. Joke is on them. I ride a motorcycle almost everywhere. I don't care if the price goes up to 500 dollars a barrel. I still only use 5 to 6 gallons a week at most. So hahaha to their stupid oil alliance!!!!

Also. I recall hearing some time ago that the Middle Eastern oil was supposed to be gone in the next 10 to 30 years. Am I remembering that correctly or am I imagining it? I swear I remember hearing that.

  • Super User
Posted

Hey Kent, I heard on the radio yesterday that oil has hit the lowest barrel price in a long time and OPEC is increasing its output.

 

So much for the oil stocks.

 

Filled up today for $1.74 a gallon in Richmond, Virginia.

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