So what's your gas price .....
- Thread starter Outdoorsfellar
- Start date
Buckmaster
Senior Member
Strother23
Member
It was 2.08 tonight in Bluffton. It was $1.74 there yesterday. It's a big squeeze game by the big boys to shut down some of the smaller companies. Atleast thats what my supervisor says that is a retired control analyst from Marathon
That's pure nonsense. This started as international politics due to our POS President pissing of Putin who is tight with the Saudis and OPEC. OPEC controls prices, not big exploration and production companies. This drop in prices hurts everyone. Just ask US Steel and the 600 people they will be laying off. Even IF big oil controlled prices, they would not drop them this far. Very few companies are even in the position to acquire the smaller companies that won't be able to ride this out of it lasts much longer than 6 months. I work for one of the premier outfits in the country. We have plenty of capital and our debt situation is the envy of our competitors. We cut our rigs from 17 to 12 this week. Everyone is feeling this crunch and it is not something the industry would voluntarily do to itself.
Saying that is like saying big ag ownwd feed mills dropped corn prices to force independent feed mills out of business. Big ag doesn't control corn prices and a 60% reduction in prices would be haed for event the biggest and most stable companies to withstand.
Huckleberry Finn
Senior Member
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Saudis did their yearly budget based on $40 barrel oil. It's a Putin and Opec game. They can produce at much less than we can. Has little to nothing to do with domestic countries but rather international commodity markets and our president that does not understand trade.
Fugger's raised it to 2.09 here also. There was one gas station that I pass on the way too and from work that was 1.99, going to fill up on my way home.
That makes more sense to me. Mike and I discussed this during our Muzzy hunt on Sunday and he did some "splaining" to me as well. I shall pass on the info. Thanks guys
ImpalaSSpeed96
Junior Member
Joel
Senior Member
Not hurting me one bit. I have to drive a lot for my business and saving over $1/gallon from last year's prices is huge.
Back up to $1.99 most places this morn. Probably only because Obama threatened to veto anything on the Keystone Pipeline the way it's written now. Not to mention he's headed to Detroit today to remind everyone that these gas prices won't last forever and to invest in high mileage cars.
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.
bigten05
*Supporting Member*
i understand the oil companies are taking a hit and some others will also, but there is some good coming out of it to, any workers that travel alot or trucking companies will be doing better if they dont have to pay as much, i could see small local business getting more business as in restaurants etc. if i it usually costs 80 bucks to fill my truck and now ony costs 40 or 50, i have some money i could use to do something else.