The boom of the 1990 wasn't exactly energy price dependent. There was a false dotcom market out there that sent tech stocks soaring.
The boom of the 1990 wasn't exactly energy price dependent. There was a false dotcom market out there that sent tech stocks soaring.
Oklahoma is more locally affected by low energy prices. But there are hundreds of millions of people saving $300 a month and yes, that more than compensates the tens of thousands out of work. This is overall in the US economy, not so much in OK or ND.
The stock market isnt a local vs distal thing... it just is. Our banks are based on it, retirement accounts are based on it, global economy is based on it... Again, you don't quite understand economics.
O&G production is in far more than Oklahoma and employees many more people than you think.
Sure, you're saving money. But there are other areas... more important areas than your ability to go buy more pork rinds and fanta, that can and will collapse if oil continues to slide.
Don't take my word for it. Go take an economics course.
What do we need whitey?
A bailout?
Capitalism has failed us again!
A bailout?
Capitalism has failed us again!
I'm gonna go with; yes. Yes, I believe they are.
I live in Oklahoma. Pretty much the entire economy depends on energy production and agriculture.
There isn't a business within state boundaries that won't eventually be affected by a major driver of our economy taking a giant ****.
We could sit here and trade anecdotal war stories all day, but the economic fact is, this is going to hurt almost every resident of Oklahoma eventually. The state's budget is staring at a $950mm shortfall. That's almost a billion $'s folks. If you are a resident of Oklahoma, that is going to affect you, whether you are in the energy business or not. Is there some fat that need to be trimmed, yes, there is, but we're gonna lose more than fat. Some are going to lose essential or very important services.
OG&E has already scrapped a multi million construction project that was going to employ a crap ton of people that have exactly jack to do with the oil patch. Mechanical contractors, plumbers, electricians, drywall guys, painters, broom pushers, etc. All those people require goods & services. They all pay taxes. Those $'s aren't going to just reappear from non oil patch workers. They evaporated from this state. G. O. N. E. They scrapped this project, not because of the low price of a bbl of oil, but because Oklahoma's economy is headed for a recession, unfit isn't already there.
If you don't understand why $13.50 a bbl for Oklahoma crude (WTI is a benchmark*) is bad for most of the state, including places as unrelated to the oil field as donut & dress shops, then you are either myopic or ignorant of the economics.
* Flint Hills set the price a few days ago on some grades of ND crude at $1.50 a bbl, up from negative 50¢. Think about that for a few minutes.
http://www.nytimes.com/2016/01/22/b...-oil-does-little-for-the-us-economy.html?_r=0
It's not as simple as tens of thousands out of work. Again, businesses that are tied to oil in an ancillary way are affected by this. We don't need $100+ oil.... but $20 oil ain't all that good for the economy either, especially considering the U.S. is becoming more of a player in production via technology.
No... what you want... for oil prices to stay low would result in bailouts. That is why I find your opinion completely idiotic.Low oil prices are bad, period.
You see a collapse of that industry, it will domino.
some of you are crying about the inevitable. Show me one person in the patch that hasn't seen this coming for a long time. Show me one person that didn't know about the severe boom and bust nature of the oilfield...whether they were on top of the hole or not.
A ton of people are losing jobs and that sucks...but they will find other work if they want to.
The economy is taking a hit and that sucks...but it will recover.
the sky is not falling. The sun will continue to shine.
A ton of people are losing jobs and that sucks...but they will find other work if they want to.
The economy is taking a hit and that sucks...but it will recover.
the sky is not falling. The sun will continue to shine.
Oh I've got a good understanding of economics. I just try to avoid the narcissistic influence that my industry is the most important or the only one that matters.
The stock market is an immediate indicator and is by nature, reactionary. This means it has a tendency to over reaction in both positive and negative directions. There is a lot more to the economy than oil investments and the stock market will recover. The current prices are artificially low and will rebound. In fact it is a great time to double down on investing in the energy sector. Just make sure you pick a company that will weather the storm.
Low oil prices are bad.
High oil prices are bad.
I'm starting to see a connection here.
RIP capitalism
Similar threads
