1$/gal. gasoline? Maybe, but what does it mean really?

[herm0016]

Our buddy who's a mechanical engineer in the energy business was laid off. Lots and lots of energy company's are laying off. OPEC has commonly had difficulty getting producers on board.

yea, working in the industry for 11 years, I have seen a couple cycles. we expect it a bit, but this one is going to be bad. my company laid off over 400 so far, and furloughed several thousand. We shall see what happens. the Texas railroad commission is talking about mandated production cuts. there is a meeting tomorrow. whiting has already gone bankrupt, i expect more small producers to follow suite. the profit margin in the oil business is actually not very high. we have seen a 50% reduction in activity in our area over the last couple weeks. there are well over 2000 oil producing companies in the USA. Most countries have one state owned producer.