$1.30 gas!!

We briefly had under $1 gas in the late 90's as I recall. We all said, whew, well never see that again!

Remember when it was $150 a barrel and $5 a gallon in what 2007? Everyone was saying we were running out!
 
I'm in San Bernadino for the week...I have seen car gas as cheap as 2.88 and as high as 3.97 here. At home in Delaware it is 1.80 +-
 
If I owned the oil wells, I would sell less when the price is low. Save it until the price goes up.

But a lot of the biggest producers, including Saudia Arabia, do the opposite --they pump more oil when the price goes down. They have a lot of govt spending that they can't turn off without creating unrest, so when the prices are at fire sale levels they pump as much as they can.

With that system, it doesn't take much to make the price crash. And likewise it won't take much to make it soar again.
 
NoHeat said:
With that system, it doesn't take much to make the price crash. And likewise it won't take much to make it soar again.
Click to expand...

Well we will start to find out tomorrow which way it goes. With Iran back on the market, the analyst sites are saying the bottom will drop. Which will not be a good thing for us.
 
NoHeat said:
If I owned the oil wells, I would sell less when the price is low. Save it until the price goes up.

People did that for years and some wells are still shut in around here. Some wells produce so little and cost more to operate than they're worth, but folks leave them in place and wait for higher prices every ten years or so.

Saw that all the time in the Lease-Purchase paperwork when I was in that biz. 0 barrels. When prices were low.
Click to expand...
Click to expand...
 
NoHeat said:
If I owned the oil wells, I would sell less when the price is low. Save it until the price goes up.

But a lot of the biggest producers, including Saudia Arabia, do the opposite --they pump more oil when the price goes down. They have a lot of govt spending that they can't turn off without creating unrest, so when the prices are at fire sale levels they pump as much as they can.

With that system, it doesn't take much to make the price crash. And likewise it won't take much to make it soar again.
Click to expand...

Lol, well that all depends on the amount of volume you can pump. Sure, there are points when it's better to shut the pump down because the cost of electricity or gas to pump it out + maintenance. However, just like the market right now, you only have finite capacity to hold the pumped-oil. Those hefty taxes on the land and business don't disappear when you stop pumping, so some people keep pumping simply to try and break-even on taxes. If you can afford to sit for multiple years, sure, it's always better to sell high, but not everyone can afford to do that.
 
ARFlyer said:
Well we will start to find out tomorrow which way it goes. With Iran back on the market, the analyst sites are saying the bottom will drop. Which will not be a good thing for us.
Click to expand...

Why not?
 
PPC1052 said:
Why not?
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At some point oil companies can't tolerate lack of profits. Layoffs, bankruptcies, economy tanking, blah, blah, blah.

Today Show actually said that oil companies can't tolerate below $25 a barrel.
 
Caramon13 said:
Poor big oil...I feel so bad for them..not..
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The big boys will be fine...it is the hundreds of small/medium business that have emerged over the past decade that will be crushed as well as all of the industries that supply them.

Just read an article how the financial sector is bracing for an major energy sector default rate due to the high volume of bankruptcies that are in process and anticipated.

Low gas prices are good but crashing oil prices will be a huge negative on the overall economy.

...and I believe it has NOTHING to do with actual supply and demand...all artificial manipulation.
 
Caramon13 said:
Poor big oil...I feel so bad for them..not..
Click to expand...

Yeah, cause every one of the hundreds of thousands of people losing their jobs is a fat-cat multi-millionaire :rolleyes: Maybe you should come join the real world.
 
flhrci said:
At some point oil companies can't tolerate lack of profits. Layoffs, bankruptcies, economy tanking, blah, blah, blah.

Today Show actually said that oil companies can't tolerate below $25 a barrel.
Click to expand...


While the other 47 states (not counting North Dakota, Alaska, and Texas) have booming, healthy economies because families aren't spending all their grocery, housing, and other funds on fuel.

I will make that trade.
 
When discussions like this come up, I always like repeating the line from Jackie Mason...
"Can you imagine what the world would be like if, after crossing the Red Sea, Moses had turned right instead of left?"​
 
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