Oil, less than $34 a barrel

[Venturous Randy]

A few months ago a barrel of oil was about $150+ with predictions of over $200, we are now less than $34. On gasbuddy.com, gas is as low as $1.20 in some places. This would be a great thing if we did not have the economy spiraling down in every direction. I am of the opinion that a lot of what we are seeing is directly related to energy costs going up and taking everything else with it. I feel that many families ended up using all their extra income to pay for fuel costs and in turn simply quit buying anything they did not HAVE to buy. Now, with people tightening up, many others have lost their jobs.

Greed seems to be controlling the financial industry and sometimes it bites you in the butt, as in giving your money to Madoff, yeah, he "made off" with a lot of peoples money.

There are several people that now are saying that all along Madoff was crooked and the Securities and Exchange Commission would not listen. There may be some heads rolling there.

I would be interested in what others have to say, but let us not make this a political discussion.

RandyA

Edited December 21, 2008 by Venturous Randy

[cecdoo]

I agree with your observations, I believe the greed that allowed the high oil and gas prices led directly to the economic state we are in. Guess if I say too much more than that its going to get political, so I guess I will leave it at that. On a liter note, it was really nice getting to meet you and your wife this year Randy and I look forward to spending more time with you in the coming year. Asheville was a "Blast" Craig

[Redneck]

Oil at $34 a barrel is good news for some and bad news for others. The job losses in the oil industry will be equal to those that would be lost if the big three were to all fail. Tens of thousands are now being layed off with many more to follow. I agree that oil prices went up way to fast and were a contributing factor to the condition of the current economy. we are in the middle of a perfect storm energy costs skyrocketed ,extreme mismanagement in the financial markets ,corporations focused on short term profits instead of long term sugcess , the government spending like drunken sailors americans liveing at 140% of their income for the last 14 years and the list goes on. Now we are going to pay for our excess's and we are going to pay dearly.

[flb_78]

Now we are going to pay for our excess's and we are going to pay dearly.

 

 

No worries!! Uncle Sam will just print off more money for everyone!!!

 

Pretty soon we'll need wheelbarrows to carry it in!!!

 

{but it wont be worth anything}

 

http://yeinjee.com/discovery/wp-content/uploads/2008/03/zimbabwe-cash-inflation.jpghttp://img.dailymail.co.uk/i/pix/2007/09_03/restauranttip_468x351.jpghttp://3.bp.blogspot.com/_fOgpqmf4tN8/SH4jyKySlYI/AAAAAAAAADM/etnAqwUf7JM/s1600/zimbabwe%2Binflation.jpg

[BOO]

I didn't know it had fallen that low, last I saw it was $40.06. It must have fallen on Friday.

That's really bad news for people looking for a job the way the economy is.

I wouldn't blame the Arab's to much for high pricing of gas, you need to look a little closer to home for that problem. I also heard the other day one of the refineries rep saying that if gas prices get any lower they would be closing down some refineries. Watch was that does to gas prices.

I'm afraid the economy is going to get much worse before it gets better,

Jerry

[Yammer Dan]

Make a huge Mid-East Parking Lot like we should and it would get even cheaper!!

[Eddie]

The job losses in the oil industry will be equal to those that would be lost if the big three were to all fail.

 

I would like to see the numbers on that . I highly disagree . I have a hard time with feeling sorry for the oil companys. After a summer of paying triple for gas in my trucks this is just pay back for all the extra profits they made. You cant tell methat the experts in the oil business didnt see this comming and figured that they better get there money before the bottom drops out.

Edited December 21, 2008 by Eddie

[cecdoo]

Maybe we should bailout the oil industry, we do have that extra 350 billion just waiting to be spent:stirthepot::stirthepot: Just kidding guys:whistling: Craig

[Redneck]

I would like to see the numbers on that . I highly disagree . I have a hard time with feeling sorry for the oil companys. After a summer of paying triple for gas in my trucks this is just pay back for all the extra profits they made. You cant tell that the experts in the oil business didnt see this comming and figured that they better get there money before the bottom drops out.

The same could be said for the auto industry and many others.

[CrazyHorse]

Opec is cutting production for the new year they are saying gas will be 2.50-3.00 bucks again.

[Yammer Dan]

Maybe we should bailout the oil industry, we do have that extra 350 billion just waiting to be spent:stirthepot::stirthepot: Just kidding guys:whistling: Craig

 

 

Don't say that out loud Craig!!!

[bryan52577]

I don't know about the rest of you but........ I work and see everyone in my area still driving the same, I do too? (Why is gas going down then?)

We have to many orders for product to fill and management says times are bad and lays off half of our plant? (If we can't fill orders why are we laying off?) Our customers can't get our product so now, they have to lay off.

Our CEO sent out an e-mail to the whole company 3 months ago stating that we had 100% more sales this year than 3 years ago and 320% more profit!(Sounds like gouging the customer to me?) But Friday we were pulled into a meeting to tell us how bad it is and we were not going to get a raise this year? (It all the sudden went from the raise being a direct reflection of the past year to speculating a poor year next year so NO RAISE.) "Curious as to how you give a raise on something unknown? Guess this way we can never get a raise ever again cause all they have to do is preach gloom and doom?"

 

Guess my point I am trying to make is, if the MEDIA says it is so, than it must be so? We have orders "many" but media says "BAD TIMES", so we lay off forcing our customers to lay off cause we can't get the product to them. (Seems to me "Media" cause our crisis here?) It's below zero for the past two days now. Read this was 10th coldest year for the planet since 1898? But media says "global warming" so by golly I am opening the windows cause I know they would not lie??????

 

Sorry had to vent, and wounder if anyone else sees this picture also?

[Guest Swifty]

I don't know about the rest of you but........my point I am trying to make is, if the MEDIA says it is so, than it must be so?

agreed...in this thing called media we have created quite a powerful predictor of the human condition; hence the desire for many to control it, and our duty to question it and to keep it independent. Don't know if its possible though.

[Eddie]

agreed...in this thing called media we have created quite a powerful predictor of the human condition; hence the desire for many to control it, and our duty to question it and to keep it independent. Don't know if its possible though.

 

I also agree , the media is more than half the problem. Its seems all they like to report is how bad things are . I told many people last year if the media would start telling everyone that things are great and people are spending money our problem would be half licked.

[Eddie]

The same could be said for the auto industry and many others.

 

The difference being that the oil companys have been reporting record profits. When was the last time any auto maker has made that kind of money.

Dont get me wrong the big 3 have no one to blame . Maybe the UAW .When your retirement fund is not vested and you count on new sales to take care of guys like my father in law that had his 30 in when he was 49 ( now 66 ) . I thought early retirement was 57.

[Jerry W]

Gotta' go with Redneck on this one. One of the major differences in the auto vs. the oil industry is in auto there is the "the big 3". In the oil patch the numbers are not concentrated in specific areas or to just a few employeers therefore the media recognition is not the same. There are as many or more people who rely on the oil industry as the auto industry, but there a are many drilling companies not just 3 or 4.

 

If you are in an area that does have a high concentration of jobs dependent on the oil patch, it is getting serious. The number of drilling rigs and make-over rigs sitting idle is a stark reminder of what is happening.

 

Auto or oil, this is serious and any job lost is devistating to the person who lost it. I don't think it is worth getting into a debate on which industry could loose the most jobs.

[Lone Eagle]

Don't know about the rest of the country, but out here, gas prices at the pump have risen approx. .10 cents a gallon this past week and a half.

[az1103]

Maybe we should bailout the oil industry, we do have that extra 350 billion just waiting to be spent:stirthepot::stirthepot: Just kidding guys:whistling: Craig

 

Oh! and lets not forget the speculators, they'll need a bailout too!

And hey my heart is just breaking for all those creeps in Dubai who had to stop building skyscrapers in the sand and let's not forget the Russian mob(read government) who had to slow down the construction of their castles!!!

[Sleeperhawk]

Don't know about the rest of the country, but out here, gas prices at the pump have risen approx. .10 cents a gallon this past week and a half.

 

 

Yeah, its called the Holidays, lets gouge them again. :no-no-no:

[abnormalwon]

"Guess my point I am trying to make is, if the MEDIA says it is so, than it must be so? We have orders "many" but media says "BAD TIMES", so we lay off forcing our customers to lay off cause we can't get the product to them"

 

I believe there is a basic answer to this issue, one which I find hard to follow myself however the more of us who take this position, the better chance it will have an effect. The answer? Ignore the media, don't watch the news, listen to your favorite music on the radio and buy motorcycle rags vs newspapers and as always when on the computer park it right here! Just an idea.

[Squeeze]

Oil at $34 a barrel is good news for some and bad news for others. The job losses in the oil industry will be equal to those that would be lost if the big three were to all fail. Tens of thousands are now being

layed

off with many more to follow. I agree that oil prices went up way to fast and were a contributing factor to the condition of the current economy. we are in the middle of a perfect storm energy costs skyrocketed ,extreme mismanagement in the financial markets ,corporations focused on short term profits instead of long term

sugcess

, the government spending like drunken sailors

americans

liveing

at 140% of their income for the last 14 years and the list goes on. Now we are going to pay for our excess's and we are going to pay dearly.

 

 

 

I would like to see the numbers on that . I highly disagree . I have a hard time with feeling sorry for the oil companys. After a summer of paying triple for gas in my trucks this is just pay back for all the extra profits they made. You cant tell methat the experts in the oil business didnt see this comming and figured that they better get there money before the bottom drops out.

 

The difference being that the oil companys have been reporting record profits. When was the last time any auto maker has made that kind of money.

....

 

Mike, i said this in a Thread we discussed that Matter and i dare to say it again. The Oil Price is too much speculating with big Money. Them Big Cash Boys pumped the Price up and now they are bashing the Oil Price. 5 Months ago i said, imho a fair and real Price regarding Production and Demands of the Market would be 70 to 75 USD, now when seeing the Downfall of most Economies worldwide and with regards to relative high Level of Oil Storage, a fair Price would be around 60 to 65 USD. We see the Price a lot lower than that and it's a Sort of Short Selling again. I don't know if you're right on the Oil Company are laying off their People, but if so, they are wrong in doing so. They will need all they can Produce in a not so far away Future, because the Price will rise again. Why ??

 

Because this low Price will held up just long enough to kill a Lot of Efforts to bring the People and the Economy away from tomorrows Technology and tomorrows low Consumption Car and other(alternative) Vehicles. That's my Story and i'm sticking to it. We need the Oil now, and there are a Lot Guys working on keeping our Demands in their Product up. What's the Loss of some Money within one Year when you keep competitive Technology away for another 3 or 5 Years ?

 

I think Eddy is right, in Regards to the Big Oil and lets see the Facts, the Downfall of the big three Motor Company is not only a wrong Product Development or producing the wrong Cars. It's also the "Ignorance" of the American People, not buying small and less consumption-able Car. VW has had a Car called "3 Liter Lupo" a bit bigger than a Smart Car and with very reasonable Consumption. We here in Germany have the highest Price on Fuel in the whole World because of our Tax System but guess what, VW stopped the Production because NOBODY wanted to buy that Car. It was expensive and with a Lot Points on the Down Side, nobody would buy that only because it was cheap on Gas. The Smart Car is on the Market for about 12 or 15 Years now, why didn't they bring it to US a Lot earlier than this Year ? Simple Reason is ... who would have bought it ?? Even here in Europe they had a Lot of Problems and seen purely economical, they have should been out of Business at least two Times. Mercedes bailed them out twice with big Money.

 

A Company can only sell what the Market(the Buyers) wants and demand, not what their Strategic Planning says it will sell. IMHO, the biggest Problem is that obviously all Motor Companies all over the World thought they would sell 10 Percent more new Cars each and every Year. Well, that Thought didn't work out as we can see now. We as Society have to readjust ourselves and even while the Oil Price is being down now, we have to accept that won't stay there. The Price will rise again and we all should be prepared for this. At least this Time we can't say we never would expect this.

[slick97spirit]

Here's the problem I have with the price of oil. If it went up to $75 tomorrow, gas would double overnight. Then let the oil prices drop significantly and gas prices drop way slower. That's what happened the last time. Oil was over $150/barrel and gas over $3.00/gal. Oil then dropped by over 40% and gas only dropped like 5%. Greed could be the only answer for what kept gas prices so high when oil was dropping like crazy. Somebody was getting "filthy rich."

[padavidj]

I always thought the reason that oil went up so high was the futures investors, namely hedge fund investors that bought into oil to secure their failing real estate investments. In any event I believe this has all showed us that the WORLD economy cannot afford oil at $140+ a barrel! When we have to tighten our belts then the rest of the world will follow suit. It is nice to see oil down as low as it is, but it would be even nicer if the gas prices would go down to where they should be.(somewhere around $1.00 a gallon) But I will admit it is alot nicer to fill my F150 up for $25 versus $90!

 

 

Dave:Venture:

[Squeeze]

Here's the problem I have with the price of oil. If it went up to $75 tomorrow, gas would double overnight. Then let the oil prices drop significantly and gas prices drop way slower. That's what happened the last time. Oil was over $150/barrel and gas over $3.00/gal. Oil then dropped by over 40% and gas only dropped like 5%. Greed could be the only answer for what kept gas prices so high when oil was dropping like crazy. Somebody was getting "filthy rich."

 

There always will be "someone filthy rich" .... since that wouldn't be me under any Circumstances, i don't care about it.

 

Although i basically agree, too cheap Fuel is a big Part of our recent and upcoming Problem. If it's expensive, People stay on their Toes and try to work out Plans in lowering their Costs. Building Insulation, electric Cars, Photovoltaic where the Sun shines and on and on ... New Technology is invented, but can't explore when nobody is investing nor buying such Things. I'm not talking about stupid green Ideology but basic plain use of human Brain and making better use of all the Resources.

 

During the high Oil Price they found a Lot of new Oil deep under Ground in off shore Brasil and in Russia, at the low Price we see now, there is no Way they will going to start getting that up, the Costs are simply too high. Canada has a LOT of Oil Sand, processing Cost are high and uneconomical at recent Times. And on and on ...

[davecb]

When the price of oil started to spiral out of proportion due to speculaters who work for the gas(EXON) companies...I predicted that if they kept on going it would not only put the US in a financial crisis, but the world also. This was over a year ago. I stated that we would be in a recession, if not a depression within one year. Its amazing the politicians never saw this. Ooops, they were to busy geting their cut under the table....Vote for me for the next president...