Thread: The price of gasoline at the pumps

mostly because the people in our part o the country depend on the oilfield to make ends meet....when the prices drop, people that shop with me at my business get laid off, then they stop shopping...the people that get laid off are the hardest hit due to the low prices...so a little stability would help not only the jobs..but these peoples peace of mind...which is much more important than money.....we have proven that when prices go up we find a way to pay for the gas...I ,for one ,am not riding a bike or walking anywhere......maybe it looks like complaining about the price of gas but it is more like concern for our local economy and jobs......

Originally Posted by grantstricklin1984

To many regulations here to compete with other countries. They need to cut the red tape! The war on coal is the biggest killer of all.

I was thinking of the decline of the coal industry when i read this thread. Simply put there is nothing else in the Eastern part of Kentucky. Those people will/are being devastated. More people will go on the goverment payroll. They won't have any choice. Really a sad situation. I'm a maintenance planner at a coalfired utility but am close enough to retirement I'll be OK. At least I hope I can squeek out 2-1/2 more years.. Really blessed to have had the job I have for my entire adult life. My heart goes out to all that are adversley affected.

Originally Posted by midcarolina

Ok... I have been around the block a few times and this is the first time in my living history I have EVER heard people complain about gas prices being too low!

Low prices are a double edged sword. In the last two months 10,000 people have lost their jobs in a three hour radius of here due to these prices. Some of these people I know. SMU Energy Institute reported that up to 25 % of the industry in Texas will lose their jobs if prices continue. That's roughly 128,000 people in Texas alone. There are 9 million people nationwide whose livelihoods depend on what happens in the industry.

These are hard working people. Many of us work in excess of 50 - 60 hours a week and on the phone 24/7 due to the nature of this business. The trickle down effects many as well. Oil production is a capital enterprise, lower prices mean fewer financing. The Texas financial services industry alone lost 700 jobs last month due to deflated prices. The list goes on.

I am sure that the majority of people in Texas, Louisiana, Oklahoma, Wyoming, North Dakota, West Virginia, etc. would much rather pay higher prices at the pump if brings job security and overall American economic stability.

Originally Posted by Tracker123

I am sure that the majority of people in Texas, Louisiana, Oklahoma, Wyoming, North Dakota, West Virginia, etc. would much rather pay higher prices at the pump if brings job security and overall American economic stability.

Hey all you gotta do is have the oil companies install donation boxes at the pumps..........And then lets see how many people will willingly give to the cause...........

I feel sorry for those laid off.........But the fact remains as long as the oil companies are allowed to make record obscene profits quarter after quarter they will continue to lay off everyone and shut the whole game down to retain the huge profits..........

EVERY business that has a captive consumer base should have restrictions on WHAT constitutes a reasonable profit!

And as far as the taxes go they are a set amount they are NOT percentage based on price...........now greedy politicians may find it easier to sell the additional taxes due to the lower current prices of gas..........but what's new about greedy money grubbin politicians wanting more money to waste........

Originally Posted by midcarolina

.....And as far as the taxes go they are a set amount they are NOT percentage based on price...

x cents/gallon is a quotient. A quotient is mathematically expressed as a fraction or percent. This axiom is utilized in day to day business.

These "record obscene profits" you speak of are margins, and working capital, that move from one quarter to the next. A great deal of these margins are paid to the stock holders since most of the industry is publicly traded. I know of some who are reading this post right now whose retirement income is dependent upon said margins - and it's bleak, which is very unfortunate.

It requires millions of working capital dollars to explore, drill, and complete productive hydrocarbons. Hundred's of millions in the deep water. In many cases it's a roll of the dice. I invoiced millions myself last year through my employer to said oil companies, 3.9 million to one alone This wasn't even a tangible product, analytical consulting. Does my 42 employee employer reap obscene profits - no. The stock holders get their share, and we move the working capital from one quarter to the next to conduct a day-to-day business in this industry we are in.

Baker Hughes laid off 7 % of their work force today. 11,000++ hard working folks. I feel for them. And I for one will think about that when I fill my truck up in the morning.

Seems we have had this discussion before............All those costs are budgeted from the year prior and are ALL paid before "profits" are posted

No amount of fancy talk and big words can change that.

Originally Posted by grantstricklin1984

Bad for you good for 99% others. Never heard Any one say gas was to cheap before. Sorry for your luck man but I'd say its more sure bet than anything you could ever bet on in your life it'll be back to 3s in a year and definitely 4s eventually

This is not wise thinking. 75% of the global workforce is made up of workers directly from oil and gas. That doesnt even count indirect jobs that support oil and gas companies. When oil and gas companies arent making money, then you can be assured that the rest of the economy is going to feel sluggish as well. The 2008 housing market collapse was caused directly from oil prices dropping for example.

sighhhhhhhhhhhh.............