If You Are PLanning To Fill The Gas Tank....

[Hobbes]

In the economic theory of capitalism the jobs don't disappear, they just migrate.

When millions of people pay less money at the gas pump they have more to spend on other goods and services.
Those industries and trades benefit from the increased purchasing power of the consumer and then add on new jobs and contracts.

 

[Raoul Duke]

There are farms that aren't broke?

Yep, in Colorado.

 

[nofearfactor]

When millions of people pay less money at the gas pump they have more to spend on other goods and services.
Those industries and trades benefit from the increased purchasing power of the consumer and then add on new jobs and contracts.

Good ol goods and services.

To hell with just this one product- gasoline- and its prices, thats just the largest and most obvious petroleum product to the average Joe/Jane consumer.

Try to imagine a world though with no or at the least a severely diminished oil industry. Look around, touch anything near you, and you likely touched a product derived from petroleum products.

https://en.wikipedia.org/wiki/Plastic
https://en.wikipedia.org/wiki/Petrochemical
https://en.wikipedia.org/wiki/Timeline_of_plastic_development
https://en.wikipedia.org/wiki/Chemical_industry
https://en.wikipedia.org/wiki/Industrial_Revolution

How about those 'goods and services'?

 

[Shadowrider]

Good ol goods and services.

To hell with just this one product- gasoline- and its prices, thats just the largest and most obvious petroleum product to the average Joe/Jane consumer.

Try to imagine a world though with no or at the least a severely diminished oil industry. Look around, touch anything near you, and you likely touched a product derived from petroleum products.

https://en.wikipedia.org/wiki/Plastic
https://en.wikipedia.org/wiki/Petrochemical
https://en.wikipedia.org/wiki/Timeline_of_plastic_development
https://en.wikipedia.org/wiki/Chemical_industry
https://en.wikipedia.org/wiki/Industrial_Revolution

How about those 'goods and services'?

Thankyou.

What is lost on most people is that when they get up in the morning and turn on the light, well they must think that happens by osmosis or something.

 

[Hobbes]

Good ol goods and services.

To hell with just this one product- gasoline- and its prices, thats just the largest and most obvious petroleum product to the average Joe/Jane consumer.

Try to imagine a world though with no or at the least a severely diminished oil industry. Look around, touch anything near you, and you likely touched a product derived from petroleum products.

https://en.wikipedia.org/wiki/Plastic
https://en.wikipedia.org/wiki/Petrochemical
https://en.wikipedia.org/wiki/Timeline_of_plastic_development
https://en.wikipedia.org/wiki/Chemical_industry
https://en.wikipedia.org/wiki/Industrial_Revolution

How about those 'goods and services'?

Declining petroleum cost benefits chemical companies like Dupont.
When the cost of fuel declines, airlines, railroads, and trucking companies become more profitable.
When the cost of NG declines the cost of ammonium nitrate fertilizer declines too, benefiting farmers and consumers.

The net result is those companies become more profitable and can expand.

Whether the oil is $100 or $20 you are just dividing up the difference among different players.

 

[TedKennedy]

Well, let's take it a step further - I run a shop that uses millions of dollars worth of a petroleum product. Oil prices directly affect the profitability of the company I work for. (several thousand employees) If low oil prices drive our costs down, and our profits up, some of that gets passed on to the employees. Why shouldn't I want a better deal for my group, even if it's at the expense of another group?

 

[JD8]

Declining petroleum cost benefits chemical companies like Dupont.
When the cost of fuel declines, airlines, railroads, and trucking companies become more profitable.
When the cost of NG declines the cost of ammonium nitrate fertilizer declines too, benefiting farmers and consumers.

The net result is those companies become more profitable and can expand.

Whether the oil is $100 or $20 you are just dividing up the difference among different players.

Trucking companies are taking a hit...... people aren't buying products..... so they aren't moving. Yes the trucking margins are better but they're not hauling anything.

 

[Hobbes]

Trucking companies are taking a hit...... people aren't buying products..... so they aren't moving. Yes the trucking margins are better but they're not hauling anything.

So in other words, lower fuel costs are allowing them to avoid layoffs.

 

[farmerbyron]

Good ol goods and services.

To hell with just this one product- gasoline- and its prices, thats just the largest and most obvious petroleum product to the average Joe/Jane consumer.

Try to imagine a world though with no or at the least a severely diminished oil industry. Look around, touch anything near you, and you likely touched a product derived from petroleum products.

https://en.wikipedia.org/wiki/Plastic
https://en.wikipedia.org/wiki/Petrochemical
https://en.wikipedia.org/wiki/Timeline_of_plastic_development
https://en.wikipedia.org/wiki/Chemical_industry
https://en.wikipedia.org/wiki/Industrial_Revolution

How about those 'goods and services'?

Yes, there is plenty of demand for petroleum products. So much demand that new and inventive ways were developed to pump more of it out of the ground than ever before. This has resulted in supply greatly outgrowing that insatiable demand for oil. Hence the low prices.

There is a large OPEC/Saudi Arabia component to this too. With Iran being able to sell oil again you can bet your a$$ that the Saudis aren't going to cut output anytime soon. They don't want to give Iran a gold encrusted nuclear weapon.

But the demand is as high as ever. The low prices now are a supply issue now more than demand.

 

[JD8]

So in other words, lower fuel costs are allowing them to avoid layoffs.

Nope. Guys are losing contracts, this doesn't include contracts that will expire from now until mid year. Also to consider is that the oil industry is an integral part of trucking as well. Aside from moving it, lots of guys from here to Houston specialize in moving large and specialized equipment. That's going bye-bye too.

I can think of other industries as well, Well services, Gamma ray companies, Machine shops.....

But I guess those guys should've had a 500k in the bank for a rainy day.