How are low oil prices affecting your business/trade?
- Thread starter WolfLMM
- Start date
Choeap crude= cheap gas= people travel= people spend more money on vacations/other stuff = small businesses and destination areas profit...
Plus anyone who travels for work or hauls anything is doing better
More building, manufacturing, ect...
And the middle east, Russia, and all those other bastards are hating us
I could see how people in the oil industry are hurting but they have been doing more then good over the last 3 decades so let them hurt
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I agree Wolf. I am not sure of the overall plan in the works, but it seems a lot of it is purely to hurt Russia. Maybe they estimated the risk here and among allies to be small enough. I don't think that the price of oil will stay this low all year, maybe a couple more months. I just hope there was really a benefit to us, by the powers that be making this deal with the devil.
37,500 gallons of petroleum-based product. Plus we see 100 car plus auto racks filled with cars coming through the yard every day. Doesn't mean the economy is doing better but it means their going somewhere
from what I heard yesterday BNSF 's operating costs dropped 7% because of cheaper off road fuel. Each engine takes 5000 gallons and we never shut them off.
Usually I tend to agree with what you have to say but this statement is pretty ignorant.
Wow, go to any town with any kind of oil/gas production..it created thousands of high paying jobs, taxes on that oil/gas build schools, highways, and hospitals, not to mention all the revenue from all the personal living there to mantain that production. The spending of that workforce is more then the savings on fuel, If your basing our overall economy on what you pay at the pump, your very wrong. You have to see through what's going on at the surface.
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Compare the number of towns across america that dont produce petroleum with the number of towns that do. The oil producing towns are far outnumbered. The low price of gas has brought thousands of people to my area that would not be visiting if the price was at $5 and there are hundreds of cities like mine that agree. When people aren't spending money on gas they spend it on vacations and other goods/services
The low oil prices affect way more than just the rigs directly. If they're not drilling the machines involved won't be needing parts which affects the machine shops making the parts. We haven't been busy since oil prices started heading down. Lots of hours been cut and machines just sitting
Choeap crude= cheap gas= people travel= people spend more money on vacations/other stuff = small businesses and destination areas profit...
Plus anyone who travels for work or hauls anything is doing better
More building, manufacturing, ect...
And the middle east, Russia, and all those other bastards are hating us
I could see how people in the oil industry are hurting but they have been doing more then good over the last 3 decades so let them hurt
I also usually agree with you but that statement is really dumb....
every rig drilling produces around 4000 jobs between rig workers, rig movers, frac crews, roustabout crews, truckers pump jack crews, tank makers, welders, electricians, power companies, geologists, tool makers and on and on
I get what your saying, I do understand that not every everyone is directly effected by the oil prices, but there are millions who are effected. To say that working in oil and gas is a bad career choice? and weve had a good 3 decades, let us hurt? I could make the same argument and say you live in a bad area for not having an oilfield and its your decision to not profit personally from it.
The reason we have prices low as we do is because we are a major world producer, it gives the US some leverage on the world market. If you took away all the oil production and left it up to opec and other exporters, we would have prices like Europe at 5$ to 8$ or Russia at 10$ gal. look at it this way, our low gas prices are a side effect of our economy getting beat on by arab's. So, all these morons who chose this career (myself included) are responsible for building the machine that is now under fire and getting you those prices. That being said, your welcome from my community to yours, glad you guys have all those visitors :hug:
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The oil boom was a bubble that was bound to bust. It was too high.
I don't think it's laughable because it is effecting a lot of people BUT you all trying to persuade guys that it'll be good if the price at the pump goes back up are peeing up a rope. It wasn't 10 or 15 years ago that fuel had never been higher than it is now and everything was going along just fine. Now you're trying to convince people that fuel needs to be 50% more expensive to sustain the industry and in turn, sustain the economy. Sorry, I don't buy it.
Maybe it'd help the oil industry maintain a certain level if it crept back up a little but I can't see this lower rate adversely effecting the economy outside of the oil industry. Even if it effects 1M people in the O&G industry (I'd be surprised if it did), that's still only a small fraction of people in the work force in this country that will otherwise be positively effected by this down-turn.
Maybe I'm ignorant, but looking at the big picture, I just can't see where this will be bad for anyone outside of the O&G industry and the overall economy.
I don't think it's laughable because it is effecting a lot of people BUT you all trying to persuade guys that it'll be good if the price at the pump goes back up are peeing up a rope. It wasn't 10 or 15 years ago that fuel had never been higher than it is now and everything was going along just fine. Now you're trying to convince people that fuel needs to be 50% more expensive to sustain the industry and in turn, sustain the economy. Sorry, I don't buy it.
Maybe it'd help the oil industry maintain a certain level if it crept back up a little but I can't see this lower rate adversely effecting the economy outside of the oil industry. Even if it effects 1M people in the O&G industry (I'd be surprised if it did), that's still only a small fraction of people in the work force in this country that will otherwise be positively effected by this down-turn.
Maybe I'm ignorant, but looking at the big picture, I just can't see where this will be bad for anyone outside of the O&G industry and the overall economy.
Here's your big picture
9.8 million
Number of people directly and indirectly employed by the U.S. oil and natural gas industry.
600,000
Increase of the number of jobs supported in just two years.
$200 billion
Paid by the industry paid in direct wages to U.S. employees.
$300 billion
Paid to workers in jobs supported by the industry.
$1.4 million
Number of jobs the industry could create by 2030 with the right government policies in place to expand access to domestic natural resources.
$85 million
Daily amount companies pay to the federal government in income taxes, royalty payments, rents and bonus fees.
$2 trillion
Invested by the industry in U.S. capital projects since 2000 to advance all forms of energy, including alternatives.
$74 billion
Government revenues generated by unconventional oil and natural gas development in 2012, rising to $138 billion in 2025.
12 percent
Percentage that U.S. energy demand will grow between now and 2040.
YA 85 Million DAILY!!!
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I personally don't believe it will stay low. Why would it? Right now the Middle East is flooding the market with cheap crude, they can't do that forever. Big oil is just sitting back (on their loads of cash) laying off, shutting down certain ops, and halting new exploration. They can wait for th supply to dry up, then resume operation when oil gets back around 70-80 bucks a barrel. Imo
One thing I have learned is don't pigeon hole oneself in a nitch market that can collapse as quick as it grew. This keystone actually passes a lot of same people that built rigs will get or can get employees to build that. And the pumping stations refineries that go with it.. O&G guys are about to experience the same thing the housing construction guys did couple decade ago when the artificial inflated housing market collapsed
the O&G market is not a niche market, if you consider it one, then by default everything is a niche market. I don't see how you can call it a niche when oil is used in just about everything you see and touch. Im not disputing the fact that it rises and falls, its been that way forever. Its when people deny that fact that low gas prices are not good for the economy. I agree it helps on the surface a little. It saves you a few bucks at the pump. I get it. Is there a sweet spot? absolutely. I think there is a balance between what we can pay at the pump and the price of oil to keep the O&G prices profitable for those of us who make our living in it. But as long as we are under the thumb of importers we will never see it.
IF O&G is your only source of income then you have putt all your eggs in one basket, thus pigeon toeing yourself into a niche market.. say MFG parts for only O&G then the owner is doing themselves a disservice.. keeping ones hands in multiple industries allows you to stay busy at a lot high capacity a lot more often.
being in logistic it would be highly foolish of me to depend on only one customer for all my business..