I dont even pay attention. I just simply buy gas and pump it.
Yeah, what are we to do. I stop paying attention.
I like the illustrations that Bio has posted up, explained a lot on the cost you paid.
pretty much alot of europe has taxes. up to 60% of our gas prices are build up as taxes.
just imagine the US would add $0.50 to each gallon and use that directly for the national debt
The economy would collapse
The armchair economist speaketh.
Well, you can always looking at actual cost of producing oil/gas. Ridiculous! And the Oil Sands and pipeline is one initiative and it also end up becoming a political circus.
So, I put my card in the machine, fill my tank and did not even bother taking the receipts. I'm pretty sure, I am again on the higher tax bracket this year!
Oh yeah, it happens longterm though. We will be making money from those prices until mid2015, maybe late2015.
They'll slow down the drilling in the first quarter of next year, and reassess for next fall. If it picks back up, we won't even notice a slowdown at all. If it stays slow, we will barely notice it as servicing wells that have already begun is a long and lucrative market.
Oil sands will feel it the hardest as they are already nearing a profit loss on their produced oil already. Depending on their plans, some may halt or modify their current projects or slow down their completion rate to stabilize their costs.
Hydraulic fracturinging is going to take a big hit, which means that drilling and Servicing of wells are both going to feel it, when people tell me that "You only drill a well once, but you service it for years"... That's not taking into account that servicing is lucrative. If the well isn't producing, instead of bringing it back online they'll throw a plug in it and come back to it in 10 years when oil rebounds.
It's going to get bad, a lot of jobs will be lost and those who don't lose their jobs are going to take pay cuts. I've already heard from a friend managing a large servicing company that he's been asked to provide 15 names based on employee review for potential layoffs (20% of his staff). Not to mention with Halliburton acquiring Baker, there's hundreds of jobs just waiting to be restructured and engineered out to save money.
Indeed, for the bulk of the industry that is true. But on our gas wells ConocoPhillips and Centrica aren't planning on shutting anything in. Frac season could be slow, I'll know in January. As for crude, well, it's tough to say... Could be grim, or could be a hiccup. We are set to have our slowest Q2 in history, that tells you all you really need to know hahah
Even if we lose half our work, we still have too much. I'm putting in 150hr weeks regularly lol. We transferred 2/10 Techs into re manufacturing, so that shaved some fat off our end. When layoffs come, it starts with non-revenue generating employees for my company. Adios inside sales, field supervisors etc..
I could honestly go for a slowdown, I got a few countries I want to visit. Off to Albania again in March ish for Shells Petromanasproject, their first well was a cash cow so we are going back in for more. I'll grab the figures when I'm back home but 26" I.D. on the tubing head... These fuckers are huuuuge
odd though, like a year ago or two, when the prices were this high, they were making profit, but suddenly, no more profit? or do you mean less profit and the wankers want to keep lining their pockets?
odd though, like a year ago or two, when the prices were this high, they were making profit, but suddenly, no more profit? or do you mean less profit and the wankers want to keep lining their pockets?
I don't have the exact #s with me, but it costs about $40-$45 a barrel to an energy company before they start making a profit (Cdn Oil).
I'm saddened by the fact that this is causing people to slow down on pushing for renewable energy. I will still be putting solar panels on when I build my house, it is still worthwhile to me.
I can't help but feel there will be some rubber banding effect from the sudden drop of prices. Afterall, the lower the prices, the more we use, the faster we run out. I like being able to save money at the pump, for sure, but it just feels like we're digging our own graves.
I can't help but feel there will be some rubber banding effect from the sudden drop of prices. Afterall, the lower the prices, the more we use, the faster we run out. I like being able to save money at the pump, for sure, but it just feels like we're digging our own graves.
i'm super happy, i run LPG which dropped to €0.334/L 325km for 6.70 euros but no, i'm not using more now
I'm saddened by the fact that this is causing people to slow down on pushing for renewable energy. I will still be putting solar panels on when I build my house, it is still worthwhile to me.
solar panels for electricity @ ±6800 kW solar panels for hot water as well LEDs, powersaving bulbs and powersaving Fluorescent Tube Light
still have some high wattage halogon bulbs, but these will be replaced after winter by LEDs as well 50W LEDS = magnificent
Bio, that may be a factor but I'm fairly certain the price drop is because of the Saudi's/OPEC vs. Russia. Hell, Russia recently reported some major oil revenue shortfall because of the Saudi's lowering the price. Obama said there would be repercussions after Crimea and I think he got the Saudi's to do his dirty work.
We may be enjoying the price drop but it's utterly destroying Russia's economy. Not that I'm sad or anything.
there is no one factor that is leading to prices being this low. we are in the middle of a perfect storm or Fracking, BRIC nations economies slowing, and alternative energy sources finally taking off. the oil companies are doing everything in their power to not lose their death grip on the energy market right now and price is the only way they can compete.
Their profit margin is taking a minor hit, but the main losers are governments that have relied on the price for taxes. As well, the workers whose jobs are now deemed "non-essential" and finally the finanicial ripple effect from high revenue -> highly paid employees -> economy keeps pumping.
It's not as bad as many say it is, but it sure as shit isn't the execs of these companies taking the biggest hit.
Some long term oil producers are just gonna eat it cause they didn't spend all their money invading essentially third world countries (russia). The Saudis are 14 billion in the hole, and their business as usual.
Let's remember that maybe 11 years ago this stuff was $1.09. It just got done being $4.50. All that money in between is what is known as greedy bullshit. This current price is what would be an expected inflation for any other commodity.
Also, in an ideal world, wouldn't lower gas prices lower prices of nearly everything else slightly (or increase worker wages)? Since companies save money with manufacturing and distribution when gas prices are lower. I know it's not what will actually happen, since this is not a permanent change and companies have no reason to transfer savings/profits to consumers or workers, but still.
It's a double edged blade for a province like mine where we are basically built around oil. This decline in price means consumers feel their dollar goes further, which would normally mean spending more.
However, with the lost jobs due to this very same thing, I couldn't tell you if more or less money is spent. I'd say less, as cautious people are now wondering if we are going to hit rock bottom.
You're righting on both accounts Xel, prices should drop across the board but companies won't do it. I'm interested to see what my housing market does, though, as it is currently inflated as fuck.
You just gotta love how prices of goods can go up when gas prices go up, but they will never come down when gas prices come down. Capitalism at its finest.
Take airlines for example. I read somewhere that rather than lower ticket prices, airlines are just using the money they save to increase the number of flights.
Comments
And the Oil Sands and pipeline is one initiative and it also end up becoming a political circus.
So, I put my card in the machine, fill my tank and did not even bother taking the receipts. I'm pretty sure, I am again on the higher tax bracket this year!
gasoline = 53%
alcohol = 26%
diesel = 41%
It pays my bills so it pays to keep an eye on what it costs them, because as long as they make profit I will have a long, long career
They'll slow down the drilling in the first quarter of next year, and reassess for next fall. If it picks back up, we won't even notice a slowdown at all. If it stays slow, we will barely notice it as servicing wells that have already begun is a long and lucrative market.
Hydraulic fracturinging is going to take a big hit, which means that drilling and Servicing of wells are both going to feel it, when people tell me that "You only drill a well once, but you service it for years"... That's not taking into account that servicing is lucrative. If the well isn't producing, instead of bringing it back online they'll throw a plug in it and come back to it in 10 years when oil rebounds.
It's going to get bad, a lot of jobs will be lost and those who don't lose their jobs are going to take pay cuts. I've already heard from a friend managing a large servicing company that he's been asked to provide 15 names based on employee review for potential layoffs (20% of his staff). Not to mention with Halliburton acquiring Baker, there's hundreds of jobs just waiting to be restructured and engineered out to save money.
Even if we lose half our work, we still have too much. I'm putting in 150hr weeks regularly lol. We transferred 2/10 Techs into re manufacturing, so that shaved some fat off our end. When layoffs come, it starts with non-revenue generating employees for my company. Adios inside sales, field supervisors etc..
I could honestly go for a slowdown, I got a few countries I want to visit. Off to Albania again in March ish for Shells Petromanasproject, their first well was a cash cow so we are going back in for more. I'll grab the figures when I'm back home but 26" I.D. on the tubing head... These fuckers are huuuuge
The reason OPEC keeps producing and pushing down the prices is the recent US swap to self-sustainment (aka sand-oil, Fracturing etc)
which dropped to €0.334/L
325km for 6.70 euros
but no, i'm not using more now
solar panels for hot water as well
LEDs, powersaving bulbs and powersaving Fluorescent Tube Light
still have some high wattage halogon bulbs, but these will be replaced after winter by LEDs as well
We may be enjoying the price drop but it's utterly destroying Russia's economy. Not that I'm sad or anything.
the oil companies are doing everything in their power to not lose their death grip on the energy market right now and price is the only way they can compete.
It's not as bad as many say it is, but it sure as shit isn't the execs of these companies taking the biggest hit.
Let's remember that maybe 11 years ago this stuff was $1.09. It just got done being $4.50. All that money in between is what is known as greedy bullshit. This current price is what would be an expected inflation for any other commodity.
However, with the lost jobs due to this very same thing, I couldn't tell you if more or less money is spent. I'd say less, as cautious people are now wondering if we are going to hit rock bottom.
You're righting on both accounts Xel, prices should drop across the board but companies won't do it. I'm interested to see what my housing market does, though, as it is currently inflated as fuck.
Take airlines for example. I read somewhere that rather than lower ticket prices, airlines are just using the money they save to increase the number of flights.