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

[dennishoddy]

Where is the blame on the oil companies, producers and employees for flooding the market and then complaining they've overshot the demand and prices are down? Are consumers supposed to pay extra to keep them in hog heaven producing to their hearts' content? Should we all build oil storage tanks in our back yards to store crude, buy it at high prices and store it so the companies can keep overproducing? I mean... should we purposely drive our cars hard so we get worse gas mileage, not to mention wear them out quicker and keep the mechanics in more work, and the dealerships in a glut by replacing what we wear out faster than we should? All in the name of stimulating oil or whatever other industry?


Or should we use our monetary savings from lower gas prices to spend in other areas, buying more electronics from our retailers, investing in our own retirements, starting more businesses, hiring more employees, etc.?

The money I'm NOT spending on gas is not simply going into my fireplace, folks... I'm sure those oilfield guys would have put it to good use, but I think other people in the economy (like FBT) are happy I have a little extra to spend with them.

The current over production is from OPEC. We beat our chests saying we have more oil than the middle east which is correct.

They responded with opening up the tap.More oil, same demand = lower prices, and putting Americans out of work.
Ostupid just released Iran so they can put their oil on the open market further driving down the price of oil and related businesses that I addressed in another thread.

 

[tRidiot]

Responding to the bold part. Most oil field related businesses don't pay high wages like most think they do.
The companies like the ones in Ponca City where you work pay regional wages. Manufacturing employees get 20 something an hour after serving their time from starting wage to top wage. It takes years to get to top wage. This is just the company my wife works for. Other company's in Ponca City are several dollars an hour lower for top wage for industries related to the oil patch. Nobody is getting rich.

The businesses in Ponca adjust their prices to those that can afford their services.

I'm constantly amazed when I see what lawn care services cost in OKC and Tulsa vs Ponca City. Its the adjustment for services.

I understand what you're saying... but it's still a relatively high wage for someone often with not even a high school diploma to be able to make $50k per year, or more. Roughnecking is tough work, I understand that... but yes, regional salaries vary greatly. That isn't so much the point of the discussion, though. It's about the industry in general... if you're overproducing, you're going to flood the market. It's simple.

Don't we now have the ability to export our oil to other countries? Why aren't we doing that? Because it's not profitable yet... because American oilfield workers require such a higher wage? I don't know... I know my brother got into the oilfield industry, he worked hard, and with not even a high school diploma he worked his way up to running a hotshot business (or something?) and he was bringing in a couple hundred grand a year... while I was continuing to go to school, living on student loans, he was buying big trucks, boats, houses, four-wheelers, building bigger shops and expanding as fast as he could. All within 3-4 years.


Last I heard, he was back to running a regular truckingroute for someone else, had lost all that stuff and was just your average joe again. Guess he didn't bank any of it or plan or whatever. We're not in touch, so I couldn't tell you... but he was one who lived high on the hog when it was rolling. Now he's back to being a regular guy. I doubt he likes it very much, if I know him.

 

[tRidiot]

The current over production is from OPEC. We beat our chests saying we have more oil than the middle east which is correct.

They responded with opening up the tap.More oil, same demand = lower prices, and putting Americans out of work.
Ostupid just released Iran so they can put their oil on the open market further driving down the price of oil and related businesses that I addressed in another thread.

SO it's cheaper to get it from them than to produce it here? Ok... so... we should ask every American to pay extra to produce it here?

 

[yukonjack]

As a retiree on a fixed income we were getting hit hard with gas at $4.00 a gallon. The oil companies made their bankroll. So now if they gotta suffer a while I'm not gonna lose any sleep over it.

The money I'm saving on gas now I'm gonna save for when the price goes back up.

Cause oil will go back up. It's just the nature of boom and bust industries.

This isn't the end of the world.

 

[dennishoddy]

Here again, a misunderstanding of economics. Oil continues to drop, your retirement, unless you are buying silver and hiding it under your mattress, wont be worth jack crap.

Also, US overproducing? Explain how the US was overproducing. I can't wait to hear this.

Good point. A lot of 401k's have invested heavily in oil and gas production. Americans not working in the oil patch have suffered as well.

 

[WhiteyMacD]

I understand what you're saying... but it's still a relatively high wage for someone often with not even a high school diploma to be able to make $50k per year, or more. Roughnecking is tough work, I understand that... but yes, regional salaries vary greatly. That isn't so much the point of the discussion, though. It's about the industry in general... if you're overproducing, you're going to flood the market. It's simple.

Don't we now have the ability to export our oil to other countries? Why aren't we doing that? Because it's not profitable yet... because American oilfield workers require such a higher wage? I don't know... I know my brother got into the oilfield industry, he worked hard, and with not even a high school diploma he worked his way up to running a hotshot business (or something?) and he was bringing in a couple hundred grand a year... while I was continuing to go to school, living on student loans, he was buying big trucks, boats, houses, four-wheelers, building bigger shops and expanding as fast as he could. All within 3-4 years.


Last I heard, he was back to running a regular truckingroute for someone else, had lost all that stuff and was just your average joe again. Guess he didn't bank any of it or plan or whatever. We're not in touch, so I couldn't tell you... but he was one who lived high on the hog when it was rolling. Now he's back to being a regular guy. I doubt he likes it very much, if I know him.

So... you borrow money, somewhere $10million plus. You drill a hole. You start producing oil. You sell oil. You start paying off your loan. Oil goes into a glut. You still have outstanding debt. So you shut the tap? Say welp, guess in addition to laying off people, we will just go bankrupt, taxpayer can afford it! My point being, you just can't shut 'er down. You have bills to pay.

And I wont mention off-shore... where simply, you can't shut down.

I don't think you understand how that industry works.

 

[dennishoddy]

As a retiree on a fixed income we were getting hit hard with gas at $4.00 a gallon. The oil companies made their bankroll. So now if they gotta suffer a while I'm not gonna lose any sleep over it.

The money I'm saving on gas now I'm gonna save for when the price goes back up.

Cause oil will go back up. It's just the nature of boom and bust industries.

This isn't the end of the world.

Your the only person in the US that will save a dime of lower gas prices. Booze, Pot, Drugs, gambling will get the majority of it.

 

[WhiteyMacD]

As a retiree on a fixed income we were getting hit hard with gas at $4.00 a gallon. The oil companies made their bankroll. So now if they gotta suffer a while I'm not gonna lose any sleep over it.

The money I'm saving on gas now I'm gonna save for when the price goes back up.

Cause oil will go back up. It's just the nature of boom and bust industries.

This isn't the end of the world.

Not all "oil companies" have anything to do with the price at the pump. There are E&P companies, then there are refiners, then there are companies who do it all.

 

[dennishoddy]

SO it's cheaper to get it from them than to produce it here? Ok... so... we should ask every American to pay extra to produce it here?

Oil is a world market. It doesn't matter what it cost to produce it here. Its what the world markets will pay for it. That's why OPEC controls the market.

The US Shale oil is expensive to produce $60 some a barrel is a break even is what I've heard.
Saudi's punch a 24" hole in the ground, and the oil blows out of the ground.

Iran is not much different.

The middle east controls what we are paying at the pump.

 

[tRidiot]

So my question is.... are we supposed to ask Americans to pay 2-3x what it is necessary to pay... so that we can keep MORE people in the oilfield?