Completely agree and add in Iran making up for lost time and $$. IMO the drop in cost has been factored in since they started talking about lifting the Iran sanctions. Countries know Iran would do this to build themselves up financially, economically and militarily and that they have the mentality now to never ever let other countries push them around. Best way to do that is to put other countries out of the oil business.
Oil...
- Thread starter Beentown
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Completely agree and add in Iran making up for lost time and $$. IMO the drop in cost has been factored in since they started talking about lifting the Iran sanctions. Countries know Iran would do this to build themselves up financially, economically and militarily and that they have the mentality now to never ever let other countries push them around. Best way to do that is to put other countries out of the oil business.
I'm living it every day. We lost 2/3 our income and while I wouldn't call our debt "crushing", it certainly becomes that when you lose that kind of income.
Hmm, every guy I know that has worked on "the pad" made over or pretty close to 6 figures the last 5 years. Not saying it is easy work by any means. Also, they are worth every penny. Especially considering time away from family and the demands placed on each.
Actually come to think of it two of them were making over $120k. Tool pushers was their position, I think. The other guys made over $70k Not sure of their titles. They referred to themselves as "roughnecks" but one dude is a "Derrick hand". This is not their salaries but what they made with overtime and bonuses.
Actually come to think of it two of them were making over $120k. Tool pushers was their position, I think. The other guys made over $70k Not sure of their titles. They referred to themselves as "roughnecks" but one dude is a "Derrick hand". This is not their salaries but what they made with overtime and bonuses.
Seems like every other news story on oil these days contradicts the previous. Glut is growing, but refining stock is down. China is in a recession but still grew 8%. OPEC going to throttle down, no agreement reached between the Russians, Venezuela, Saudis. Stock market down, short rallies for a few days.
Personally, I fucking love $1.79/gal diesel. I hate it for anyone affected by the layoffs but I think the US businesses and output will bottom and steady, the question is when. It's clear hedges are up and sustained low prices is working as the Saudis wanted, just nearly as fast or deep. The good wells will keep flowing as rig count drops, but exploration and drilling has all but stopped as many CEOs are reporting. But, as Jesse and other guys have said, some of these guys are lean and don't carry much debt load and are good to $20. Freaking awesome!!
It's time the US took the control away from OPEC. I just hate what it does at current prices as reflected in the market. It's not good for anyone and data has shown it does little to spur consumer spending. Most people reported increasing savings instead of spending. Sure doesn't feel like global demand is going to pick up so unless WW3 or something else happens, so hopefully it's around for the next decade. These little China teapots are also looking interesting, could really tank shit if they figure out a way to supply domestic China. Add in Irans input, stuff gonna be overflowing before long. See any of the pictures of ships making up the floating inventory.....mind blown.
Personally, I fucking love $1.79/gal diesel. I hate it for anyone affected by the layoffs but I think the US businesses and output will bottom and steady, the question is when. It's clear hedges are up and sustained low prices is working as the Saudis wanted, just nearly as fast or deep. The good wells will keep flowing as rig count drops, but exploration and drilling has all but stopped as many CEOs are reporting. But, as Jesse and other guys have said, some of these guys are lean and don't carry much debt load and are good to $20. Freaking awesome!!
It's time the US took the control away from OPEC. I just hate what it does at current prices as reflected in the market. It's not good for anyone and data has shown it does little to spur consumer spending. Most people reported increasing savings instead of spending. Sure doesn't feel like global demand is going to pick up so unless WW3 or something else happens, so hopefully it's around for the next decade. These little China teapots are also looking interesting, could really tank shit if they figure out a way to supply domestic China. Add in Irans input, stuff gonna be overflowing before long. See any of the pictures of ships making up the floating inventory.....mind blown.
Hortontoter
Senior Member
When my wife retired two years ago our income dropped by better than 50%. But, her retiring was a planned event, so the loss of income was not a surprise. We get by OK. I feel for you guys that lost jobs in the oil downturn. Hopefully every one lands on their feet.
We'll never see prices like we saw 5 years ago without WW3. Reality is, if oil would go to $65 and gas to $3/mcf, gas would be $2.75 at the pump and life would be good for all.
Something to keep in mind here is that the price oil is only one factor. If natural gas was $3 or more a mcf, I'd still have a job. The price of oil is not what cost me my job as we were more a natural gas producer than oil producer. We have one of the best dry gas leaseholds on either side of the river and in both plays. It takes $3 natural gas to keep rigs turning to the right. Even if oil went to $5 a barrel, but gas spiked to $10/mcf, it would be balls out again.
Something to keep in mind here is that the price oil is only one factor. If natural gas was $3 or more a mcf, I'd still have a job. The price of oil is not what cost me my job as we were more a natural gas producer than oil producer. We have one of the best dry gas leaseholds on either side of the river and in both plays. It takes $3 natural gas to keep rigs turning to the right. Even if oil went to $5 a barrel, but gas spiked to $10/mcf, it would be balls out again.
Rough Necks make approx. 70 K, not 6 figures, Co. Man and Pusher......yup they do make 6 figures but they also have a big responsibility. Now 3'rd party workers such as my self do not even come close to that yearly figure. RN is around 70 K as I mentioned but they are 2 weeks on, 2 weeks off. A mudlogger makes half of that at best and works a heck of a lot more hours, days, and weeks. By no means am I trying to pick a fight, just trying to set the record straight............NOT ALL in the patch make 6 figures.
Buckmaster
Senior Member
The business came in fast and hard and seems to be leaving just the same. The good is..... that few hundred acre farmer that once grew hay or raised cattle. He got his $1MM lease check to support his family for years to come.
If that's what you took away from that post, I challenge you to read it again. You can read that part as "X figures".
I also said nothing about it not being earned. I believe I said something about slowing down now and enjoying life. Most oil field work comes with lots of sacrifices and a very fast paced life. A lot like the military, only you get paid for that time away from family/friends.
I agree with Jesse here on finding a happy medium so everyone can make a living.
I also said nothing about it not being earned. I believe I said something about slowing down now and enjoying life. Most oil field work comes with lots of sacrifices and a very fast paced life. A lot like the military, only you get paid for that time away from family/friends.
I agree with Jesse here on finding a happy medium so everyone can make a living.
Here is an example of an excerpt I read. Pretty good information. Good explanation for us not in the business.
Don't take this wrong as I feel bad for guys losing jobs. I have family in this business as well as friends. Lower gas prices tend to drive other markets. People travel more. People have more money in the pocket weekly from reduced fuel costs. Other hotels are visited because people are traveling. That said, overall I do agree with Jesse. While "some" businesses will perform well due to reduced fuel costs, this industry was a huge wealth producer. Many stock analysts are calling this one of the largest transfers of wealth in the US right now.
I see this as capitalism at work. We are ALL tied in this thing together. From the bottom to the top, top to the bottom. Big CEO's, working class people, and even the poor. Every business is affected by an industry reset. Some positive. Some negative.
Don't take this wrong as I feel bad for guys losing jobs. I have family in this business as well as friends. Lower gas prices tend to drive other markets. People travel more. People have more money in the pocket weekly from reduced fuel costs. Other hotels are visited because people are traveling. That said, overall I do agree with Jesse. While "some" businesses will perform well due to reduced fuel costs, this industry was a huge wealth producer. Many stock analysts are calling this one of the largest transfers of wealth in the US right now.
I see this as capitalism at work. We are ALL tied in this thing together. From the bottom to the top, top to the bottom. Big CEO's, working class people, and even the poor. Every business is affected by an industry reset. Some positive. Some negative.
Hortontoter
Senior Member
Dad always told me that Fuel is worth whatever they wanna charge for it, unless you wanna walk or take a horse everywhere. I think $2.50 gas would be good for everyone
I'm lucky to have the job I do . I work with natural gas transmission and storage . We aren't a producer so market prices don't directly affect us . Natural gas is constantly moving to market be it summer or winter . The market changes but honestly we move as much gas in the summer as in winter .
When your work is tied to oil its very cyclical . I've got a lot of friends who work in various oil field jobs . They all make good money , when they're working . But long hours are the norm and traveling is key to staying working . A lot aren't working now tho . The ones that are working are just picking up jobs here and there and making ends meet .
Gas pricing is a tough subject . In many ways it helps the economy , but in just as many it hurts . There has to be a happy medium . I was pretty pissed when I was paying $4 a gallon , and watching oil companies posting record profits while I had to budget more money for gasoline , and spend less on other things in my life .
When your work is tied to oil its very cyclical . I've got a lot of friends who work in various oil field jobs . They all make good money , when they're working . But long hours are the norm and traveling is key to staying working . A lot aren't working now tho . The ones that are working are just picking up jobs here and there and making ends meet .
Gas pricing is a tough subject . In many ways it helps the economy , but in just as many it hurts . There has to be a happy medium . I was pretty pissed when I was paying $4 a gallon , and watching oil companies posting record profits while I had to budget more money for gasoline , and spend less on other things in my life .
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Nope. But people cut in other ways. Remember when gas was 4.25 a gallon and a brand new Chevy 1500 4x4 truck was around 32k. It's because they couldn't sell them. Now that gas prices are reasonable again that same truck is selling for 55+. Personally I purchased a mid sized truck that got 22mpg instead of a full size that got 16 mpg. When you drive 2,000 miles a month that adds up to roughly 150 bucks a month in fuel savings. My car gets 19 mpg and Jessica's gets 32. Far more likely to take her can on longer trips, around town running errands, etc than mine. With gas at 1.5 we take my car everywhere as it's funner to drive.
And so where is all your savings going now? How are you keeping the economy afloat during the downturn with your new found riches?
I'm going to be buying a camper. Which means I'll be buying more diesel and propane this summer. Probably be purchasing some more fishing lures... Oh, and a trip to Alaska.
If diesel was still $5+ a gallon, I would've probably sold it by now and the camper would still be out of the question.
If diesel was still $5+ a gallon, I would've probably sold it by now and the camper would still be out of the question.
Joel
Senior Member
I feel bad for guys that were working in oil but I'm loving these gas prices and hope they stay low.
Do ya honestly think any of us here are swimming in wealth ? Either before or after ?
I think the extra money is helping to make it easier to take the family to dinner a time or two . Perhaps take the wife on a long weekend sometime during the yr . It definitely helps on fishing trips pulling a boat there and fueling a boat . We're only talking a couple hundred dollars a month . But it does help .