Sometimes you gotta take one for the team
Sometimes you gotta take one for the team
We will enjoy it...I don't begrudge oil companies and oil workers making money at all, but I'm not praying for artificially high prices just to support that segment of employers/employees.
Low gas prices have wide reaching positive effects that benefit a much broader range of folks.
That wasn't pointed at you SMS, though after reading the thread again I can see that you may have thought it was. My main point was that the jobs are going to be leaving the state or going away altogether. I'm just wondering if people are cool with that. The low gas prices don't do anybody any good if they don't have a job, they can't really "enjoy" them.
And for really cheap gas? Put a CNG conversion on your vehicle and get a home fueling station. About $0.68/gal that way, I haven't seen that since the '70s. That cheap enough?
Get pissy all you want but honestly I always enjoyed cheap gas. And grocery. And fertilizer for my land. And fuel to tend it. It won't stay low and it won't stay high.
I think there is a couple things going on here. US shale thinks OPEC's move was targeted at them but I don't really buy that. The US never consumed much OPEC oil anyway. I think it was primarily targeted at Russia who is the number 2 exportor in the world. OPEC rightly saw the weekness in Russia caused by current tensions and sanctions, and a general trend against Russia and they took the opportunity to put a serious hurt on Russia's economy and by extention, its ability to produce exportable oil/gas.
Secondarily, there is a world-wide weariness of oil and gas in general. Between 2000 and 2008, the cost of a gallon of gas went up 3-4x. Most people see the arguement about fracking as unrelated to earthquakes as silly. Oil industry after years of denials has recently begun claiming that it isn't fracking but disposal wells which, ironically, are disposing of waste products from fracking. The number of people accepting climate change as a function of fossil fuel comsumption is well passed the majority. Even those who can afford the hit to the bottom line that many working folks can't are seeking to reduce their own personal dependance on fossil fuels because they feel raked over the coals by oil; not just to save money but to not have to spend money with oil companies. This paragraph might sound anti-oil/gas but these are some of the market drivers I see as US demand is under the curve and there is a good amount of bad vibe from the general public to the industry and that can be a powerful force in the market.
I think Oklahoma is going to feel a good pinch by this since we've really learned nothing from the 80s when we had the last crunch. We haven't diversified our economy or really hedged our bets in any way and it's unfortunate because the guys getting laid off when their rigs get stacked don't have an alternative. Farmers who are mineral owners dealing with on-going drought and years of lower yields are going to loose needed income while the state has not spent the money it could have earned from the oil boom to improve water and other resources. We haven't invested in tranisional education where a guy could come off the rig and build a wind turbine (if you wanted to stay in energy) or hell, build anything. We've let manufacturing leave and really done nothing to cultivate any industry other than oil and gas.
It is what it is I guess. I hope the guys on the ground affected by this can find a better gig and maybe when we get to the otherside of this little bidding war, we'll figure out we need a better way.
Secondarily, there is a world-wide weariness of oil and gas in general. Between 2000 and 2008, the cost of a gallon of gas went up 3-4x. Most people see the arguement about fracking as unrelated to earthquakes as silly. Oil industry after years of denials has recently begun claiming that it isn't fracking but disposal wells which, ironically, are disposing of waste products from fracking. The number of people accepting climate change as a function of fossil fuel comsumption is well passed the majority. Even those who can afford the hit to the bottom line that many working folks can't are seeking to reduce their own personal dependance on fossil fuels because they feel raked over the coals by oil; not just to save money but to not have to spend money with oil companies. This paragraph might sound anti-oil/gas but these are some of the market drivers I see as US demand is under the curve and there is a good amount of bad vibe from the general public to the industry and that can be a powerful force in the market.
I think Oklahoma is going to feel a good pinch by this since we've really learned nothing from the 80s when we had the last crunch. We haven't diversified our economy or really hedged our bets in any way and it's unfortunate because the guys getting laid off when their rigs get stacked don't have an alternative. Farmers who are mineral owners dealing with on-going drought and years of lower yields are going to loose needed income while the state has not spent the money it could have earned from the oil boom to improve water and other resources. We haven't invested in tranisional education where a guy could come off the rig and build a wind turbine (if you wanted to stay in energy) or hell, build anything. We've let manufacturing leave and really done nothing to cultivate any industry other than oil and gas.
It is what it is I guess. I hope the guys on the ground affected by this can find a better gig and maybe when we get to the otherside of this little bidding war, we'll figure out we need a better way.
Fox25 just showed a station in OKC selling gas at $1.99/gal with the 7-11 across the street at $2.03/gal.
The oil patch is going to be the oil patch. It took a dump in the 80's, and took another dump in the 90's.
It has to be the most cyclic industry in history. I worked in it for almost 39 years. I cried when my $80 stock went to $1.75, I was happy when it went to $85 and split 3 for one.
I cried again when it went to $40, but then I learned to play the cycles on the stock market, even the small ones. It got to $85 again, and split 2-1. Little guys playing the cycles made good money toward their retirement. Big guys that bought rigs for a penny on the hundred dollar bill, and stored the equipment made millions later.
Anybody remember the half section of drilling rigs stored in south OKC in the 90's? That guy made many millions of dollars on the resale.
The oil patch never learns from past. They operate for the day. Feast and famine.
It has to be the most cyclic industry in history. I worked in it for almost 39 years. I cried when my $80 stock went to $1.75, I was happy when it went to $85 and split 3 for one.
I cried again when it went to $40, but then I learned to play the cycles on the stock market, even the small ones. It got to $85 again, and split 2-1. Little guys playing the cycles made good money toward their retirement. Big guys that bought rigs for a penny on the hundred dollar bill, and stored the equipment made millions later.
Anybody remember the half section of drilling rigs stored in south OKC in the 90's? That guy made many millions of dollars on the resale.
The oil patch never learns from past. They operate for the day. Feast and famine.
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