And there was much rejoicing in the land.... Gas Prices

[War Machine]

please forgive my ignorance, but why are gas prices so low right now?

[SS Junk]

please forgive my ignorance, but why are gas prices so low right now?

DRRRRRRRRRRAAAAAAAAAIIIIIIIINAAAAAAAAAAAAAAAAAAGE!

[jdgregory84]

Out of all of the people here defending big oil, how many of you work in that field? Or have worked there in the past, or have family working in it?

Everyone defends their job. I am the first guy to scream at Tesla wanting to sell cars direct, because it influences my business. Just like the LEO's in here defend law enforcement practices.

In 2013, Exxon's CEO made 28.1 million and the company itself made 32.6 billion. Thats one guy and one oil company, so don't sit back and preach about how they're driving the economy, they're driving money into their own pockets. I'm not saying that they don't help and influence the economy, but they can do the same thing at a slightly lower profit margin.

Most A-List actors make more than that a year and all they do is entertain you for a couple of hours a year.

[CexMashean]

While we're on the subject of people who get paid too much for what they do:
Professional sports athletes! I mean, am I right? eh?

[line-em-up]

If you guys think that all other prices will drop in relation to gas prices, get ready to get disappointed.

I doubt we will see prices reduced for other products. No company wants to go to the time and expense readjust their prices for what may only be a temporary lower gas price.

[Ruffdaddy]

Complaining about Americans making six figures? Why didn't you go out and work in the patch? Or get a specialized degree that afforded you the right to work way too many hours for that money.

You do realize that most of those in an office job makmaking six figures are not just your average person right? They're either PhDs working in advanced sensor technology or engineers that know their job may be gone in a year.

Maybe there's a lack of realization that oilfield technologies are incredibly advanced but also have to survive the worst conditions.

[Ruffdaddy]

Maybe it will also help to understand that America will probably lose first because of the price to produce in shale. That means all of the average hard workers out in the north American patch are now working low dollar jobs. But the saudies, iraqis, Venezuelans, and such are all pumping out barrels as fast as can be when shale stops. It's jus not good for america, and neither is 150/bbl.

[Denny]

Complaining about Americans making six figures? Why didn't you go out and work in the patch? Or get a specialized degree that afforded you the right to work way too many hours for that money.

You do realize that most of those in an office job makmaking six figures are not just your average person right? They're either PhDs working in advanced sensor technology or engineers that know their job may be gone in a year.

Maybe there's a lack of realization that oilfield technologies are incredibly advanced but also have to survive the worst conditions.

Maybe it will also help to understand that America will probably lose first because of the price to produce in shale. That means all of the average hard workers out in the north American patch are now working low dollar jobs. But the saudies, iraqis, Venezuelans, and such are all pumping out barrels as fast as can be when shale stops. It's jus not good for america, and neither is 150/bbl.

We don't agree on much, but I think you're spot-on right here.

[TRAILBLAZER]

http://www.vox.com/2014/12/2/7319307/gas-prices-falling

How cheaper gasoline affects the United States

1) Huge savings for US drivers: Millions of Americans drive and refuel their cars weekly, with the average person spending about $2,600 on gas each year. When the price of gasoline drops, everyone suddenly has more money in their pockets to spend on other things. The effect is not unlike a big tax cut.

Economists at Goldman Sachs estimate that US households have already saved about $75 billion over the past six months from the fall in gas prices. If prices were to stay at current levels, the average annual savings would come to about $1,100 per household. That's going to have positive ripple effects on the broader US economy.



Who loses from lower oil and gasoline prices?

Cheap oil is obviously good news for people and countries who use oil and gasoline. But it's bad news for people and countries who produce it.


Oil-producing nations — including Russia, Saudi Arabia, Iran, Iraq, and so on — are seeing a huge hit to their bottom lines. Steven Mufson of The Washington Post estimates that the annual revenue of OPEC nations could shrink by $590 billion if prices stay this low. Russia, for its part, had been planning for $100-per-barrel oil in its 2015 budget. Now that prices are down to around $70, the country is likely to face a painful economic adjustment.

( seems like to me this is a good thing ?? )

[Ruffdaddy]

The phrase penny rich and pound poor comes to mind. Save a few bucks a month, but lose a few million jobs in the US.

But hopefully I'm wrong and those savings translate to more high end jobs in america!

[talisman]

The profit margins are roughly 7%, but thats after all expenses. The insane employee salaries are part of expenses.

Nope, they're greedy because they will do whatever it takes to continue the record profits, including laying off workers. The minimum wage was mostly a joke. The type of car that I deal in is the older, higher mileage vehicle. Most people making 6 figure salaries will buy new, which isn't what I deal in.

7% profit, even with Internal Controllable Profit items such as salary being included, is nothing to get excited about. And every company out there includes employee salary as part of their expenses, and that is completely reasonable.

[Baron Von Crowder]

The phrase penny rich and pound poor comes to mind. Save a few bucks a month, but lose a few million jobs in the US.

But hopefully I'm wrong and those savings translate to more high end jobs in america!

So O&G is going to just shut down in america?

[Ruffdaddy]

So O&G is going to just shut down in america?

You don't understand how shale works over conventional huh?

[Baron Von Crowder]

You don't understand how shale works over conventional huh?

Perhaps we are looking at this in different ways. You are chicken little, and I'm thinking that there will be a slowdown in drilling after several months.

They arent going to stop pumping from existing wells, so all the staff that is currently on hand for production is likely going to stay in place.

History has told us that drilling will continue for some time, though the well may be capped rather than go into production. The number of drilling operations is likely to be less, though.

Also, from a historical standpoint, prices will go back up and they will continue to drill and produce again.

But you are saying that since it is shale, everyone will moth ball all of their equipment that they are paying on and maintaining either way, use or not, and sit there with their arms crossed refusing to do anything.

[Ruffdaddy]

Confirmed...you don't quite understand.