Gas Prices hit $2/gallon!

[Stocker]

Saw this from a LA newspaper last week. The article was concerning high home costs but we all know it's due to high gas prices

Yup, gas prices, that's exactly why so many jobs are leaving Cali for states that are more business-friendly 

[abnormaltoy]

Yes, our *trails

Saw this from a LA newspaper last week. The article was concerning high home costs but we all know it's due to high gas prices

That graphic shows why I decided against moving back to Texas. I grew up in Dallas...it's too big now, but the influx of Californians is going to booger up Texas. Californians took the one state synonymous with the American dream (uh...California) and effed it up. I figure in 15-20 years Texas will just as boogered up as California is. No offense...just thinking out loud.

(I wonder if this is one way to alienate an entire state )

[Cheesemaker]

I know alot of guys moving to the midwest and Texas, because jobs are plentiful.  And the oil industry, and electical field is in need of workers.  Several people I know are making at least $70,000+ in the oil fracking, and wind turbine business.   

[81 shortbed]

I know alot of guys moving to the midwest and Texas, because jobs are plentiful.  And the oil industry, and electical field is in need of workers.  Several people I know are making at least $70,000+ in the oil fracking, and wind turbine business.

The oilfield is why I'm in Texas. Jobs are everywhere, no state income tax,  cost of living is cheaper,  vehicle registration is cheaper.,  etc, etc. the downsides for me are the heat, the drought, and everything is 100 miles away.

[KDXSR5]

I know alot of guys moving to the midwest and Texas, because jobs are plentiful.  And the oil industry, and electical field is in need of workers.  Several people I know are making at least $70,000+ in the oil fracking, and wind turbine business.   

I perform field inspection/thread rep services on oil/gas casing and up until this drop in oil prices everything was going great and jobs were plentiful. In fact everyone I work with except two are from another state. Now everything is crashing hard here and in North Dakota and I am quickly looking for something different to get into before the bust puts me out of work similar to 2008. Hopefully Texas can sustain. One of our country's strongest industries is about to crash yet again. Yay low oil prices!

[BigMike]

One of our country's strongest industries is about to crash yet again. Yay low oil prices!

KDXSR5, beings this is the appropriate thread, could you please elaborate more on this? I haven't done as much following up on things as I could be, but I thought the recent drop in oil price was due to factors such as our refineries haven't been catching on fire = increased domestic production and we're finding better ways to do fracking = increased domestic production. I'd assume there would be more jobs if our own production has been increasing. One opposing factor I can think of for our workers is that our dollar has been increasing in value which would make it go further with importing oil = less need to produce our own supply = fewer jobs as you've said above

[Stocker]

If I may.... due to reasons you listed, we are enjoying an oil glut, which (good old supply & demand) has brought prices down. But it's a double-edged sword. It costs a lot of money to produce & refine the stuff, so when oil prices drop far enough, it's no longer profitable for companies to operate in the US & Canada. In effect, it costs more to produce it than it will sell for at these low prices. So they are forced to shut down, at least temporarily until the glut dries up and prices rise again to a level than makes it cost effective to operate. 

Enjoy cheap fuel while you can... it won't last forever. 

[brockbuilt85]

from what i understand, Opec and most of the middle east isnt slowing production due to the drop in prices, which is flooding the market, they have plenty of money in reserve and can take the hit that they are taking right now in order to flush out all the new producers (mostly whats going on here in the west) then when they go out of business, all the money will head back over seas. Stocker pretty much said the same thing. enjoy it while you can!

[yotaneck13]

I've been out of the loop on this thread for a while. Yet, I notice the name of the thread is once again appropriate. 2.55 a gal here in pa right now.


Sent from my shop, hiding from my ole' lady.

[BigMike]

Good points posted above, thanks guys. Question: How were USA employees in the oil industry surviving when prices were $0.89/gallon (the lowest I've experienced in my short life )? To maintain the same compensation rates and benefits... Was it fewer workers in the industry? Greater efficiency? Or maybe it was far less oil production than what we have today from other countries?

Of course inflation plays a role too but we've gotten it "down" to three times the price at the pump and now we might be loosing domestic jobs yet we've sustained job rates at $1/gallon two decades ago ...or maybe it was a struggle then too?

Thanks for the info, love learning and discussing stuff like this Please don't take any of this as being disingenuous: I think we should have both jobs (cakes) and low gas prices (eat them too)

BigMike

[BigMike]

I want to add that if there were fewer workers before and that is how they were able to maintain similar compensation, then I don't like the idea of complaining about job loss. It seems like a catch twenty: Complain because the economy is inefficient, but then make the economy efficient and then complain about job loss. Of course I don't like to see companies cut X number of workers.... So what, it boils down to overpopulation? Come awn, this is America -- if we are a creative collective then job shortage is a big factor in the development of new opportunities.

Admittedly harsh / short-sided reasoning. Just thinking out loud.

Mike

[Stocker]

Well, I have seen 24 cents per gallon    and my guess is that besides inflation (which you mentioned), getting things done was simply cheaper & easier in the past than now. So many new laws & regulations being passed year after year until it simply becomes very difficult (therefore very expensive) to do business. Not that all laws are inherently bad -- but it doesn't help that foreign competitors can do the same things cheaper, because they don't have all our laws (and associated red tape) to deal with.

[BigMike]

Well, I have seen 24 cents per gallon 

My engine craves that leaded fuel

laws & regulations

Great point, has gotta be one of the core factors. I guess it's just different here in California. We hardly have any regulations at all with, well, anything. Our officials should get a raise for jobs well done.

Regards,
BigMike

[81 shortbed]

We are slowing down in Texas. Crude was down around $48/barrel today. I read somewhere that In the Middle East they can still make profits when crude is $18-20/ barrel. With the cost of labor in the USA we can't compete with that. Before I worked in the oil field all I paid attention to was the price at the pump. Now that it affects my livelyhood, $3.75 a gallon doesn't seem so bad. I'm not trying to cry a river but there's always two sides to everything.

[Stocker]

I guess it's just different here in California. We hardly have any regulations at all with, well, anything. Our officials should get a raise for jobs well done.

Regards,
BigMike

  Oh gawd, stop it, yer killin me!!   

[BigMike]

there's always two sides to everything.

[KDXSR5]

Opec

+ government pushing business out of the country with high corporate taxes and more taxes on investment revenue.

Oil/gas go through wild swings. Energy production is a boom industry. The further upstream you get (pipeline->refineries->gas station) the less the industry is effected. Where I am at (drilling) industry is affected the most.Once oil or gas drops below a certain point, companies starting folding rigs over like crazy, which is exactly where we are at right now. Fracking doesn't matter if there are no wells being drilled!

[Rocksurfer]

He'll be close to Tito's Tacos in Culver City

Mmmmm, I love my Tito's Tacos, of course what I really like there is the meat and cheese burritos. Used to eat there every day back in the late 70's and it hasn't changed a bit.

[Rocksurfer]

I think the main problem is that even oil produced, pumped or shipped in the U.S. is thrown onto the world market. If the market was narrowed and export limited it would allow U.S. and Canadian oil to remain here. Then the outside forces that are driving the price into the gutter in order to shut down U.S. and Canadian production would be nullified. Then we could sell our oil on our market and not have to worry how much others produce to drive down the price. Yes there is somewhat of a down side to this for us in that we'd pay a little more for a gallon but it would also keep from having this issue. I think that the U.S. producers should cut back to limit the impact that these outside forces are trying to create.

[Rocksurfer]

No Quarter given. (nope...not talking about coins)

What blows is...my younger brother is moving to Marina Del Rey, he's becoming a partner in an architect firm...but, he's going to commute every few weeks back to Tucson.

Marina Del Rey is nuts, tell him to stay away from the Venice Peninsula it is insane on weekends, Venice is crap west of Lincoln Blvd. Playa Del Rey is the hidden gem which is just to the south of the Marina.

[Cheesemaker]

I'm loving the fact that I'm able to put $20 in my tank, and it gives me 3/4 of a tank of fuel.  A year ago I was lucky to get little over a 1/4 of a tank for that same $20.  But yeah, it comes at a price. 

I feel that it all stems from the fact that we have less military equipment in use abroad, more fuel efficient vehicles, and people thinking about their traveling, which is affecting the oil reserves.  The less oil/fuel used, the more you have in reserves.  Which then causes the work to slow down, and then shutting down of refineries, derricks and so on.  Here locally, we have a road tax on our gas, and its coming well under expectations.  Why?  Better MPG vehicles.   I could go on, and on. 


I was reading an article online today, that gave 6 reasons why the market is gonna crash this year, 2015    One was the fact that oil prices are falling.  Here and abroad.  Another was Russia's economy due to the sanctions, is causing his oil sales to dry up.  And the American dollar has become very strong, versus other nations. 

I am going to talk to my financial consultant to see if my investments are safe, or shaky. 

[abnormaltoy]

there's always two sides to everything.

Triangle...

[BigMike]

I feel that it all stems from the fact that we have less military equipment in use abroad, more fuel efficient vehicles, and people thinking about their traveling, which is affecting the oil reserves.  The less oil/fuel used, the more you have in reserves.

I'll give ya the point on more fuel efficient vehicles, but 25 yrs ago there were fewer cars on the road and we were involved in a war (Gulf), yet fuel prices were ~3x lower.

I could go on, and on.

I was reading an article online today, that gave 6 reasons why the market is gonna crash this year, 2015

Stop reading articles like this and get back to work

And the American dollar has become very strong, versus other nations.

Hey, I appreciated this when I went to Japan last Nov. My dollar went much further over there than it has in quite some time

Regards,
BigMike

[abnormaltoy]

$1.89 today...

[Rocksurfer]

$1.89 today...

Our club is headed to AZ in the morning, I'll be expecting some gas under 2 bucks when I get there. Going to Quartzsite for the RV/swapmeet, hit some of the trails and then heading to Scottsdale for some family time.

[abnormaltoy]

Our club is headed to AZ in the morning, I'll be expecting some gas under 2 bucks when I get there. Going to Quartzsite for the RV/swapmeet, hit some of the trails and then heading to Scottsdale for some family time.

Bring the gas cans or a spare tanker.




EDIT: Just to make sure there is plenty of salt in the wounds...$1.75 today.

BigMike...in your limitless treasury of knowledge is there a way to unravel the original poll to see who the fools...uh, optimists were that thought cheapo gas might return?

[chim]

$1.99/ Gal Regular here in Oregon Costco

[Cheesemaker]

I paid $1.25 a gallon at Freddy's/Kroger today!!    

That was with $1.00 off a gallon.  Just shows how much we spent there last month for Xmas!  Because that is the only store we really have in town.  The rest was Amazon, and we did go to P-Town for some things. 

[BigMike]

That was with $1.00 off a gallon.

How does one obtain this magical discount?

[bigarms23]

Paid $1.79