Welcome to TheOhioOutdoors
Wanting to join the rest of our members? Login or sign up today!
Sign up

Oil...

You closed with what I feel is the resounding truth. And understand, this is just my opinion. But I don't believe the extra money those millions now have is by and large, being spent in a manner that betters their lives. We won't see eye to eye on this, so I'll just bow out now.
 
bowhunter1023 said:
You closed with what I feel is the resounding truth. And understand, this is just my opinion. But I don't believe the extra money those millions now have is by and large, being spent in a manner that betters their lives. We won't see eye to eye on this, so I'll just bow out now.
Click to expand...
Look, all I'm saying is, when gas shot up to $2.75 per gallon, there wasn't anyone happy about it... Except the people involved in the oil/gas industry.
 
HeartLunger said:
Anyone know the range of crude between 1983 and 2004?

$20-$40/barrel. We're not in new territory here.
Click to expand...

Apples and oranges.

Do you know what the cost drill a conventional well is versus a non-conventional well? It's tens of thousands versus millions. Also, natural gas prices were higher during that time period, so it helped carry the depressed oil market. So yes, the price on the label is nothing new, but it's a entirely different scenario now. Go out and try to lease minerals for $5/acre like they did in the 80's and let me know how that works. It's not just the difference in operating costs that make $40 oil a loser.

Imagine if a 2016 Chevy Silverado had to sell for $15K, roughly what a new Chevy truck costs in 1990. No big deal right? We've seen that price before. Sure. But what did it cost to build one in 1990 versus 2016? It's the same idea with oil. In 1990, mineral leases were $5/acre, not $5-10K an acre. The cost to drill a well was $25K, not $2.5 million.
 
Last edited:
jagermeister said:
Look, all I'm saying is, when gas shot up to $2.75 per gallon, there wasn't anyone happy about it... Except the people involved in the oil/gas industry.
Click to expand...

And even fewer were happy when it was $3.75. But they sure liked the sounds of $2.75 gas.

It's more than just jobs. It's lost tax revenue. It's no more money being donated to schools or 4-H programs. It's no more companies helping to upgrade long neglected township and county roads. It's loss of royalties. There's far more to this than just jobs. America can survive is a gallon of gas is $2.75. If oil and natural gas never reach prices that make them economic to pursue, it could have catastrophic consequences for much of this country. I don't see other industries picking up this slack. If you see the writing on the wall, please share because I'd like to start putting in applications...
 
bowhunter1023 said:
And even fewer were happy when it was $3.75. But they sure liked the sounds of $2.75 gas.

It's more than just jobs. It's lost tax revenue. It's no more money being donated to schools or 4-H programs. It's no more companies helping to upgrade long neglected township and county roads. It's loss of royalties. There's far more to this than just jobs. America can survive is a gallon of gas is $2.75. If oil and natural gas never reach prices that make them economic to pursue, it could have catastrophic consequences for much of this country. I don't see other industries picking up this slack. If you see the writing on the wall, please share because I'd like to start putting in applications...
Click to expand...

All those new paved roads in Carroll, Harrison, Jefferson, Belmont etc.. they didnt just happen. the townships found a pot a gold under the oil rainbow.. dare I use the word extortion??? Not to mention all the new little restaurants, the HIGH GOUGING house rentals.. All the fast food, convient stores, the entire Ohio economy benefited from the oil & gas guys... I know I did my part to stimulate the Ohio economy
 
We put $6 million dollars in to one Tyler County, WV's worst roads before I was laid off. The state neglected that road for years, with no incentive to fix it. We made it safer. We made it passable. We improved the neighborhood. And all for nothing. Pretty nice perk to having Big Oil as a neighbor if you ask me.
 
I fill up my truck usually 3 times a week to go work. At 20 gallons or so each time with gas just $1 cheaper than normal, that's $240/month give or take that I'm saving. Just one guy with one truck. Of course every penny of that goes to something else. So no matter how you look at it, when gas is cheap more money gets spread around to more people. Fuck the gas industry. Hopefully they saved some of their billions when they were screwing us previously. If not, oh well. Better luck next time.

I guarantee this is helping really low income people even more than the average guy. Maybe they do spend the savings on booze. Probably feels nice to buy a 6 pack and still have gas in the beater.
 
bowhunter1023 said:
And even fewer were happy when it was $3.75. But they sure liked the sounds of $2.75 gas.

It's more than just jobs. It's lost tax revenue. It's no more money being donated to schools or 4-H programs. It's no more companies helping to upgrade long neglected township and county roads. It's loss of royalties. There's far more to this than just jobs. America can survive is a gallon of gas is $2.75. If oil and natural gas never reach prices that make them economic to pursue, it could have catastrophic consequences for much of this country. I don't see other industries picking up this slack. If you see the writing on the wall, please share because I'd like to start putting in applications...
Click to expand...

This might not be an answer, but it is an idea. There are industries which do well when oil/gas are cheap. Plastics, fertilizers, and everything consuming oil will have better financials and most likely see some growth. You have sales experience? I am not telling you what to do, nor do I know if this is a solution. It is simply something to think about. Just trying to stir some thought for you on what you may be able to look into for work. As I said, it may not be the solution. Just a thought. Trucking? You don't have to drive a truck to get a job in the trucking industry. There are logistics coordinators, dispatch, management positions available as well as sales positions. The extra money in peoples pockets allows them to spend money on more stupid crap. More stupid crap needs to make it to the stores.

I'm not going to argue about the industry. It sucks. It is what it is though. It is out of our hands and we can't change it. We can only roll with the punches it sends our way.
 
Joel said:
I fill up my truck usually 3 times a week to go work. At 20 gallons or so each time with gas just $1 cheaper than normal, that's $240/month give or take that I'm saving. Just one guy with one truck. Of course every penny of that goes to something else. So no matter how you look at it, when gas is cheap more money gets spread around to more people. Fuck the gas industry. Hopefully they saved some of their billions when they were screwing us previously. If not, oh well. Better luck next time.

I guarantee this is helping really low income people even more than the average guy. Maybe they do spend the savings on booze. Probably feels nice to buy a 6 pack and still have gas in the beater.
Click to expand...

I doubt it. Very few of them were so cash strong they could do the explorations with no debt. It is the debts coming due right now which are killing these companies. Reduced demand for their product along with bills coming in. . . .First martyr is the employees they do not need since they aren't drilling.

That brings another thought- Some industries cannot make money drilling/mining with crazy fuel costs. Gold, silver, and other mining companies are probably loving the reduced fuel costs. Any gold mines close to you Jesse? lol
 
bowhunter1023 said:
You closed with what I feel is the resounding truth. And understand, this is just my opinion. But I don't believe the extra money those millions now have is by and large, being spent in a manner that betters their lives. We won't see eye to eye on this, so I'll just bow out now.
Click to expand...

You don't have to take his word for it, there's plenty of data out there to support it. When gas prices fall consumer spending in other areas rise. And consumer spending is the bellwether to our economy. While it sucks for those in the oil industry it will be a great boom for those in the travel industry, the truck and sport car industry, movie theaters, restaurants, retail stores etc. Even if the savings at the pump is spent on wasteful things like booze and smokes people working at Budweiser and Phillip Morris will benefit. The American oil and and gas industry was doomed no matter what. Between regulation, taxes, fees, the EPA, OSHA, unions, and the list goes on and on we cannot compete with OPEC countries. It's an impossibility. We as a nation can't even agree to build a damn pipeline from Canada and bicker about it for almost a decade. Countries like Saudi Arabia would have that pipeline built before our congress even knew where keystone was located on a map. We can't have such bureaucratic shit and expect to compete with countries who simply get shit done.
 
I understand Jesse's thought of gas at 2.50 a gallon and all is well. If, and when, our economy collapse many will have rather paid the $2.50 a gallon for gas. More than just the oil/gas industry will be in dire straights.

I'm sitting on the fence on this subject as a guy that just started receiving royalties on 3 horizontal wells. Oil and gas prices are in the basement and my checks have averaged over 500.00 per acre. Now I can think, if oil was $100 a barrel and gas was $4.00 per mcf I'd be sitting pretty. But, in reality I'd just as soon see cheaper gas prices for the masses. Greed can get the best of most people, I try not to think in a greedy manner.

And these horizontal wells cost a ton of money for the companies to drill. And the leasing bonuses made lots of folks millionaires over night. I hope to see oil and gas prices rebound so that the country can get more stable and jobs in the oil/gas industry return.
 
You're going to see companies shut wells in this year. They'll let out enough of a trickle to claim "production" so they don't lose their leases. But it's very likely a lot fo royalty payments will drop to pennies on the dollar.
 
Also, the first wave of leasing hit around 2006, which caused a wave of renewals and exercising of secondary terms in 2011. So, in 2016 you will see a ton of leases expire. People who think their minerals are worth $8K an acre are going to be butt hurt If they even get an offer to re-lease their minerals. Dollar per inch of diameter pipe laid for rights of way? Nah. Kiss that goodbye too.
 
How do you think this will affect that new rover pipeline, Jesse? It's going through a few hundred yards from our land and through a few people I know.
 
bowhunter1023 said:
Also, the first wave of leasing hit around 2006, which caused a wave of renewals and exercising of secondary terms in 2011. So, in 2016 you will see a ton of leases expire. People who think their minerals are worth $8K an acre are going to be butt hurt If they even get an offer to re-lease their minerals. Dollar per inch of diameter pipe laid for rights of way? Nah. Kiss that goodbye too.
Click to expand...
They're still fighting for it. Most companies are going back to a price per acre since that's how real estate is typically dealt in, and we're not buying the damn land, just the rights to lay a pipe.
 
I don't know enough about the project to make an accurate prediction. However I believe it's a FERC regulated line which means they'll have eminent domain rights. They'll pay fair market value (which will change now) and you'll take it or they'll pay you way less and lay it any way.

Several of these big interstate lines will carry on as planned. There's a lack of infrastructure in place to transport what's available today even if no more wells are drilled for 5-10 years. Companies like Columbia Transmission have their sights set on opening up the Carolinas and further south to the Appalachian natural gas market. It will take years to make that happen and people are willing to gamble that 10 years from now, prices will have risen to a point that it's economical to drill again. The entire industry needs these big transmission lines, so you'll see several of them carry on as normal.
 
You must log in or register to reply here.