Are low oil prices helping or hurting you?

[DeerAssassin]

So...knowing that the industry is volatile, did you save aggressively during the boom time so you'd have something on which to fall back during the bust, or did you set your standard of living to your income when life was good and then find yourself in trouble when the entirely-predictable downfall came, and get bitter about others' benefiting from the swing?



Oh, look, there's the answer.

Yes, I had several thousand to fall back on but eventually that and unemployment runs out, and since I worked in Kansas, it ran out 10 weeks earlier than it should have. What is the point of slaving away on a drilling rig if you can't enjoy the money it brings you and your family?

 

[Dave70968]

Yes, I had several thousand to fall back on but eventually that and unemployment runs out, and since I worked in Kansas, it ran out 10 weeks earlier than it should have. What is the point of slaving away on a drilling rig if you can't enjoy the money it brings you and your family?

I made 20% less than you at my peak, bought a house on a couple of acres and supported my kid, and still managed to save enough to go 8 months unemployed (without unemployment, I might add), then almost two years at $10/hr (at a bit less than full-time), and still be able to deal with some minor catastrophes (like having a new well drilled, at a cost of about $7,000), and I didn't feel like I missed out on anything.

If you want to enjoy it in the moment, fine, but if that's more important to you than being prepared for the downside we all know very well is inevitable, you forfeit your right to complain, and especially your right to be bitter toward those who funded your high times (like the soccer mom in the SUV who paid for gas when the high price was supporting you).

 

[whiskeysnoot]

Contrary to such popular belief, Oklahoma's economy does not hinge on the oil industry. Those that believe differently don't know recent history. I'm 45 right now and have lived in OK all my life. When I was a kid all of my relatives in West Texas were living the high life from oil. My grandparents were making $1k/acre for a 3 year lease. Then in the late 80's and all through the 90's oil had tanked (no pun intended). Felt lucky to get $50/acre for 5 year lease. Relatives that were well off before dang near starved for 20 years. One friend of the family was an oil exec back then but spent that 20 years scraping by checking pumpjacks daily that only produced a barrel a day. He hung with it and has been banking for the last 10 years.

Whole point is that the oil industry is cyclical. Like the airline industry that I am in. I've seen the good years and the bad. Right now we're in a little bit of upswing. But to believe that OK will dry up and blow away with low oil prices is ridiculous. Didn't happen before. I remember it well. History lesson over.

 

[Jwryan84]

I made 20% less than you at my peak, bought a house on a couple of acres and supported my kid, and still managed to save enough to go 8 months unemployed (without unemployment, I might add), then almost two years at $10/hr (at a bit less than full-time), and still be able to deal with some minor catastrophes (like having a new well drilled, at a cost of about $7,000), and I didn't feel like I missed out on anything.

If you want to enjoy it in the moment, fine, but if that's more important to you than being prepared for the downside we all know very well is inevitable, you forfeit your right to complain, and especially your right to be bitter toward those who funded your high times (like the soccer mom in the SUV who paid for gas when the high price was supporting you).

Real Christian of you there Richard, kick him while he's down. Real encouraging of you.

 

[TwoForFlinching]

Real Christian of you there Richard, kick him while he's down. Real encouraging of you.

I think the point there, lost in a salty lashing, might be a lesson long lost in my generation when it comes to saving. Whether it be money, or crops to tide you over a harsh winter.

Sucks that someone is fallen on hard times, but it's poor form to talk of you excess in one breath, and whine of your unpreparedness in the next.

 

[Dave70968]

Real Christian of you there Richard, kick him while he's down. Real encouraging of you.

I've a spare bedroom I've given--not rented, given--to friends in need. Anybody who needs help is free to ask.

I've also kicked guests out for claiming a need, but playing bridge instead of working. I've bailed my own brother out of jail (and written the brief defending him) when the charge was bogus, and given him a size-12 in the backside when he blew his rent at the casino.

I may have been blunt, but I don't think my point is wrong.

As to friends who worked to better themselves while I hosted them, well, they're doing better than I am at the moment...and I'm honored to call them friends. One in particular I was honored to toast at her graduation recently (she and her husband shared my guest room for several months), and I look forward to their future success.

I'm not out to kick anybody. I do find a disconnect between enjoying the good times and complaining about others doing the same, and between saying "I work hard" and saying "unemployment isn't enough" when we all know it's inevitable. That's not bad luck, it's poor planning.

 

[dennishoddy]

I think the point there, lost in a salty lashing, might be a lesson long lost in my generation when it comes to saving. Whether it be money, or crops to tide you over a harsh winter.

Sucks that someone is fallen on hard times, but it's poor form to talk of you excess in one breath, and whine of your unpreparedness in the next.

My generation before you, most being farmers knew that one had to ride the highs and lows of farming. In years where drought/flood, etc caused failures, you had to rely on savings to pull you through. When it went on too long, the farm was lost, and you moved to town.

I worked 20 some years in oil field equipment manufacturing, so I've seen the ups and downs of the industry first hand. Watched the folks go out the door during layoffs, etc.

Even though they made a ton of money during the good times, some don't put money back, and some do. Businesses in the oil patch are the same. Some plan for the inevitable down periods, and some don't. The ones that did are still poking hole in the ground and supporting the satellite businesses around them.

The oil patch is historically an up and down business. Those getting into it need to be aware of that, and plan accordingly.

^^^ is a great generic statement by me, but in reality, some can't put money back. They have issues with family, etc that keep their savings at a minimum if they can save any at all. The oil patch with its good wages is a great place to work when its up. Not so much when its in decline.

 

[nofearfactor]

I live in Osage County and not only are low oil prices an issue but the resent Federal Government BIA regulations have effectively stopped all drilling and work overs here. Today a judge decides what's next. I'm headed to court now and am hoping for good news for a change.

Im Osage and a shareholder, been waiting patiently thru all of this BS. Income from Osage oil has been in my family from the beginnings of it in 1906, my grandfather and his family were original allottees, my grampa later inherited his parents shares which he passed down to us. Im 3rd generation headright holder. My mother, a retired banker and part time financial advisor to retirees, told me when I turned 18 and got my money to not ever rely on the oil income as my main income because of the up and down cycles she had seen since the 40s. She was right too about the cycles, and I never have relied on it, Ive always worked hard for myself and invested what extra money I have wisely and have saved like a miser to prepare for the thinner times, like we're in now.

 

[SlugSlinger]

Down another 4% today.

Interesting tidbit is gasoline futures are up very slightly ranging from $1.70 for September options to $1.40 for December contracts.

I heard gasoline is under $2.00 per gallon in okc, is this true?

 

[Wheel Gun]

Down another 4% today.

Oil stocks are definitely on sale right now. I just bought more XOM and OXY. Sadly, there's no reason to believe that this will correct any time soon. The opportunity for a "V" or "U" recovery are gone. I now suspect that we'll see $30-$40 WTI until the presidential election. It's sucks for the industry and for Oklahoma.