So what's your gas price .....

[Redhunter1012]

Gas prices are directly tied to the price per barrel of oil. The energy industry in America added 100K jobs in the last two years and most of those jobs will disappear with oil being sub $50 a barrel. Most people think gas (gasoline) is tied to exploration and production companies and that is not the case. Refineries buy crude and other petroleum products from the E&P companies. The refineries and the companies that own/operate them are the ones that control the price at the pump. When crude prices are down, they can obviously produce gasoline cheaper, hence the drop at the pump. When the price at the pump drops, it means crude prices are dropping and when crude price drop, production slows. When production slows, there is less need for employees whether it be within E&P companies, oil field service companies, or even companies like US Steel who produces a large percentage of the drill pipe in America. There is a trickle down effect from slowed production. Caldwell, Ohio had a grand total of 1 hotel 3 years ago. In the past 3 years, they have built and opened 1, with 2 more being built as we speak. All to service the oil field. Guess what happens to those hotels when E&P companies pull out of Noble County due to low prices? Those hotels will sit empty and eventually close, eliminating jobs. From rig hands, to welders, to equipment operators, to construction crews, people are going to lose their jobs in mass over the next few months.

So really its quite simple. Cheap gasoline means less jobs.

So basically once the axe starts to fall on all these jobs, the the political finger pointing will begin? How will Obama try and spin it?

 

[Big_Holla]

You woulda thought Obama would have waited til just before the election year to show how great his policies were for the lowering of gas prices...... :smiley_depressive:

 

[ImpalaSSpeed96]

I get a lot of that Jesse, but why is production slowing with cheaper prices? I would think with everything bring cheaper it would pick up.

I'm anything but a Obama fan, but hot damn, dude gets blamed for high prices, now he's getting blamed for low prices hahaha.

 

[bowhunter1023]

I get a lot of that Jesse, but why is production slowing with cheaper prices? I would think with everything bring cheaper it would pick up.

I'm anything but a Obama fan, but hot damn, dude gets blamed for high prices, now he's getting blamed for low prices hahaha.

Seriously?

So you are telling me that if you owned a business where you made $100 per unit of production that when you the price you received fell to $45 per unit, your business would pick up?

 

[ImpalaSSpeed96]

I'm telling you everything is relevant I would think. And as prices drop, consumption picks up.

There's always a loser in every situation I suppose.

 

[bowhunter1023]

Did you stop driving when gas was $3.75? I know I didn't and from what I could tell, neither did 99% of America. Cheap gas doesn't mean you run out and stock up like you would if beer went to $5 a case. Sure, there will be a slight bump in consumption as people fill up their gas cans, decided to take a road trip, etc. However gasoline is one of those commodities that we use at a fairly consistent rate regardless of price. Beyond that, even if gasoline demand rises, there are enough reserves to satisfy demand without impacting the price. It would take a tremendous, almost impossibly large spike in demand to have any impact on crude prices.

This is not a simple equation and goes far beyond basic economic principles.

 

[Huckleberry Finn]

I'm telling you everything is relevant I would think. And as prices drop, consumption picks up.

There's always a loser in every situation I suppose.

Do you even pump your own gas in Jersey?

 

[bowhunter1023]

lmao

 

[ImpalaSSpeed96]

This is not a simple equation and goes far beyond basic economic principles.

That's for sure, because none of this ever dawned on me....

Do you even pump your own gas in Jersey?

Dude it drives me nuts. I hated coming back to full serve. However, I don't have to deal with it often. I drive a big diesel and pretty much soley fill up on base, where I pump my own gas.