300UGUY
Super Member
I don't know, housing prices have pretty much recovered here, lots of jobs. Aside from my IRA, I am doing very well
1$/gal. gasoline? Maybe, but what does it mean really?
- Thread starter NoTrespassing
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I don't know, housing prices have pretty much recovered here, lots of jobs. Aside from my IRA, I am doing very well
CurlyDave
Elite Member
When oil went up, the conventional wisdom was that it would wreck the economy, and I do remember the "oil shock".
Of course, now that oil is going down, that is going to wreck the economy.
My take on it is that it takes time for any change to work its way through the system, but that lower oil prices are long term good for the economy.
I would rather that we send less money to foreign producers and keep our oil in the ground. When we need it later, it will still be there.
Of course, now that oil is going down, that is going to wreck the economy.
My take on it is that it takes time for any change to work its way through the system, but that lower oil prices are long term good for the economy.
I would rather that we send less money to foreign producers and keep our oil in the ground. When we need it later, it will still be there.
davesl708
Elite Member
Agreed. Everything destroys the economy.:confused2:
The oil industry has been boom and bust since the beginning. Over production of any product will force the price down as demand equalizes. Oil shale is nothing new. There have been vast reserves of shale oil know to the industry for 100 years. New methods of extraction have made it economically viable. Since then there was a rush to capitalize on it.
The oil industry was drilling thousands of wells per year since 2000. A second high pressure natural gas pipe line was completed back in I think 2006 to bring more NG to the east from the Utah basin.
All oil producers are continuing to produce resulting in a glut of oil. Prices drop to sell yours before the competition. We (consumers) are using less and oil industry is producing more. Prices go down.
Lower oil prices help most industries produce their products cheaper and transport cheaper.
This results in good news for most industries and consumers and bad for the oil industry.
As consumers have more disposable income from spending less on fuel they then spend it on other products. That is good for the economy.
Consumer product prices will not drop as long as there is a high demand for them. Case in point, "Doritos" corn prices are way down, production cost are down, transportation cost down and yet the price of Doritos keeps going up. Reason, demand.
There are no evil doings going on or master plan. We the consumers are driving this. Supply and demand govern the markets.
dmccarty
Super Star Member
Yeah, I left out Cuba since it will take years for them to get the oil if it is there. The Chinese attempt take must of the South China sea is all about oil, fish, other resources and a defense barrier which seems to be of limited usage. But at some point the Chinese are going to start major oil development which is going to get interesting.
Cuba is supposed to have some of the best undeveloped and untouched coastline left in the western hemisphere, if not the world. I hope they don't mess that up with oil development or too much tourist development. I too doubt ISIS is getting $30 a barrel, more likely $10-15, since they have to pay bribes and people on the other side have to make money. While Putin is certainly a dishonest man, to say the least, you have to wonder if he was correct in that the Turkish President is involved with oil smuggling. Given that the Russians bombed a bunch of oil trucks at the border it is hard to believe that the Turkish government is not deeply involved with smuggling. It is not hard to believe that the Iraq government is involved as well. Certainly the US knows which way the trucks are going and where they cross borders...
Later,
Dan
dmccarty
Super Star Member
I know a guy who used to own a gas station. What he has told me over the years and from what I have read, a gas station only makes a few cents per gallon of fuel. Which when fuel was around $4.00 a gallon the money they make is not a big percentage at all. The gas stations make money selling stuff, not fuel. A station selling 3,000 gallons a day, and making a nickle per gallon, is only $150 a day. Having said that....
The fuel price volatility has made the price of fuel at my local stations vary all over the place. Over the years I would buy fuel either at one station in town or at one of two stations on the way to work. The two stations where next to each other and the prices are almost always the same. For many years, the fuel prices at the two stations was the lowest, but at times, the station in town was cheaper. Lately, the two gas stations have been higher than the store in town by 10-20 cents a gallon. :confused3: What is more odd is that there is another station I have driven by for years, but until 2015, NEVER stopped to buy fuel because they were so much more expensive than the other stations. In 2015 this station has had the cheapest fuel from time to time compared to my usual stations. :confused3: Last week this station was 20 cents cheaper than the other places. :confused3:
If the station is making 25 cents a gallon and selling 3,000 gallons a day, that is $22,500 a month! Now, the station still has bills to pay out of that gross but that is a large gross! :shocked::laughing::laughing::laughing:
Later,
Dan
The fuel price volatility has made the price of fuel at my local stations vary all over the place. Over the years I would buy fuel either at one station in town or at one of two stations on the way to work. The two stations where next to each other and the prices are almost always the same. For many years, the fuel prices at the two stations was the lowest, but at times, the station in town was cheaper. Lately, the two gas stations have been higher than the store in town by 10-20 cents a gallon. :confused3: What is more odd is that there is another station I have driven by for years, but until 2015, NEVER stopped to buy fuel because they were so much more expensive than the other stations. In 2015 this station has had the cheapest fuel from time to time compared to my usual stations. :confused3: Last week this station was 20 cents cheaper than the other places. :confused3:
If the station is making 25 cents a gallon and selling 3,000 gallons a day, that is $22,500 a month! Now, the station still has bills to pay out of that gross but that is a large gross! :shocked::laughing::laughing::laughing:
Later,
Dan
kcflhrc
Veteran Member
From what I can gather Fracking has played a huge part in the oil glut. Unfortunately on the news the other day they were saying they thought Fracking in Oklahoma was contributing to recent earth quakes in the region.
davesl708
Elite Member
One thing the news does not tell is earthquakes occur in Oklahoma, Kansas, Nebraska, Missouri and Arkansas on a near daily basis. They are small and mostly not detected. Pressure is constantly building as the plates press against the Rocky Mountains. As with the New Madrid fault from time to time the pressure gets released. Here in the middle it is a little at a time. With the New Madrid it comes in big releases. Smaller is better.
If fracking is the cause then it would be happening in a lot more places.
The fracking hype is because some people do not like oil in any form and will say anything to stop its use.
Lower oil prices help consumers and hurts the oil industry. Just like high oil prices help the oil industry and hurt the consumer.
kcflhrc
Veteran Member
The issue cited was more about the disposal of the fracking fluid/material as opposed to the actual fracking. But just like anything in the media or on the internet, reader beware. I also think it's strange that people in Kansas City say they feel these earth quakes from Oklahoma but I live closer to the quake then they do and can tell you I have never felt anything resembling an earth quake. I'm all for low oil/gas prices, but I hope they have done their fracking homework.
davesl708
Elite Member
I live in the KC area and have never felt the quakes. The soil and subsoil make a big difference in how far a quake can be felt.
The one I worry about is the New Madrid fault. It is estimated when it gives way KC will have around a 7.1 quake.
newbury
Super Star Member
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C'mon, although that is certainly true in the areas I frequent all the news is that we are still doing poorly.
I like that, The Dorito Economic Theory.
