Steve in VA
Well-known Member
- Location
- Natural Bridge Virginia
Just filled the Dodge for $3.19 a gal! Locally it's dropped 60 cents in 60 days. Extrapolating we should hit 0$ by September {or not}. Even if not, its nice now.
(quoted from post at 18:49:44 11/21/14) Woo Hoo
Oil prices are down causing gasoline and diesel prices to drop to prices we have not seen in a while.
But have any of you sat down and thought about...
Why oil prices have dropped from over $100 to $75 a barrel in three months.
What these low oil prices will do to our economy.
Domestic production has pi$$ed off OPEC. So now OPEC is flooding the market with oil; driving prices below the break even price for domestic oil.
This will do two things.
Bankrupt some small oil producers weeding out competition.
Cause layoffs at the bigger oil producers.
So go ahead and jump for joy over low gasoline prices. Me I would rather have oil in the $90 range and just live with the higher gasoline prices.
(quoted from post at 07:03:59 11/22/14) You got some of it right but you still missed the big picture. Wish I had time to explain it to you in detail.
A few points for you to think about.
This is much bigger than a few mid-western states losing production jobs or some farmer buying his 10,000 gallons of diesel.
Shale may have started it but is not the reason for low prices.
The price of oil can be used in the political shell game between countries.
OPEC that runs it countries strictly on selling oil are losing market share.
Saudi Arabia is in a price war with the U.S. and Iran to keep that market share or they are in some hush hush deal to win political favors.
With $75 oil whole countries will suffer causing a WORLD economy crises.
nnalert State in Iraq and Syria (ISIS) plays into it because they need high oil prices.
It is very narrow minded to think the U.S. can produce oil from shale creating jobs in N America; enjoy low gas/diesel prices from this shale oil; and not upset the world market.
So enjoy the low oil prices while they last cause the same people that are involved in this oil price war are the same people we export your corn and wheat to.
(quoted from post at 16:01:08 11/21/14) Just filled the Dodge for $3.19 a gal! Locally it's dropped 60 cents in 60 days. Extrapolating we should hit 0$ by September {or not}. Even if not, its nice now.
(quoted from post at 09:10:28 11/22/14) Explain this to me. I remember in the 60's and early 70's diesel was cheaper than gasoline. Why is it not now cheaper?
(quoted from post at 07:47:50 11/22/14) I guess the way things are remembered depends on a persons point of view. When oil prices collasped in the early 80's hundreds of thousands of jobs were lost in the oil producing states, these were non union jobs that dissapeared due to over supply of product, no fault of the people working those jobs. During that same time period unions were busy bankrupting steel mills, auto plants and construction companies all over the country, union members were striking and throwing away their own jobs and futures in stark contrast to the oilfiled hands who wanted to work but had no work. To top it all off, the federal government stepped in and provided billions of dollars worth of extended unemployment benefits, re-training, education vouchers, tax credits for relocation and many other benefits to the union workers who had squandered their own jobs, the oilfield hands got nothing, of course the vast majority of oilfield hands had long since found other work or got back on a rig at reduced pay or moved to where they could find a job because that is what people do who genuinely want to work.
(quoted from post at 12:31:10 11/22/14) Eh, somehow I think they can still bring that oil out of the ground at a profit for 50, maybe 60 bucks.
And something you've not considered in your equation - the rise in jobs because of low fuel prices. That, you cannot dispute. I shuttered my business in 2007. Everything we purchase costs more because of high fuel prices. People buy less because of it. That directly affects GDP.
I think the pros greatly outweigh they cons in this particular scenario.
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