# Gasoline Prices getting too low.



## fishingcacher (Mar 29, 2008)

I saw on TV a report about gasoline at 2.46. I was disappointed to find out it went done to 2.43 at the Sam's club on Eldridge south of Westheimer.:headknock


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## fishinmajician (Jun 20, 2006)

Really?


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## redduck (Jul 26, 2006)

I understand your concern. While I like low fuel prices I think higher oil prices are good for economy. However, oil is Russia's biggest resource and I understand they are taking a beating with low oil prices. So I am in favor of low prices at this time.


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## Ebbtide2013 (Jan 31, 2013)

Me too....I would rather pay 4.46 per gallon.More fun when it cost over a hundred dollars to fill up.
LOL.....Maybe they can increase our taxes a little more too!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


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## greenhornet (Apr 21, 2010)

I hope they start selling it for 99 cents a gallon, keep on dropping!

I can not be convinced that higher prices on gas and all of our goods (due to shipping costs) is good for the economy. It's good for a very small sector of our economy and I will not shed one tear for that sector.


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## NaClH2O (May 25, 2004)

I paid $2.36 a gallon last night at the Buc-ee's in Texas City. I was surprised it was that low.


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## boat_money (May 21, 2004)

oil may be at a three yr low but check it's current price at @ $75/barrell and compare that to the last 30 years. most producers are still making big margins...

http://www.macrotrends.net/1369/crude-oil-price-history-chart


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## grman (Jul 2, 2010)

So that does bring up an interesting question?

Are the low prices a way to punish Putin for the Ukranine?

And is the U.S. government driving the price?


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## KIKO (Oct 24, 2006)

That's good, some of that money can go to other sectors of the economy and give it an overall boost. "What's good for the whole, may not be good for the individual" and vise versa.


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## redspeck (Jul 3, 2012)

Now I might be able to fill up my 30 gallon tank. I could deal with $2 or $3 a gallon.


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## Rubberback (Sep 9, 2008)

redspeck said:


> Now I might be able to fill up my 30 gallon tank. I could deal with $2 or $3 a gallon.


I hear yea.


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## V-Bottom (Jun 16, 2007)

I could deal w/ $2 a gallon a "lot better" than $3 a gallon.


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## capt. david (Dec 29, 2004)

This is good and bad. Good for consumers, more money not spent on gas. Bad if they don't spend the savings on other goods. Also bad for those cities and states that depend on the oil market for jobs. Not a good thing for Texas. I really believe that the economy thrives on 90.00 a barrel for oil.


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## 1MOFISH (Mar 13, 2014)

Cheaper gas is always great for my economy.


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## Hullahopper (May 24, 2004)

fishingcacher said:


> I saw on TV a report about gasoline at 2.46. I was disappointed to find out it went done to 2.43 at the Sam's club on Eldridge south of Westheimer.:headknock


http://online.wsj.com/articles/energy-boom-can-withstand-steeper-oil-price-drop-1414627471


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## Rubberback (Sep 9, 2008)

Hullahopper said:


> http://online.wsj.com/articles/energy-boom-can-withstand-steeper-oil-price-drop-1414627471


So, that means they have been ripping us off forever.


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## goatchze (Aug 1, 2006)

Rubberback said:


> So, that means they have been ripping us off forever.


Ripping you off? Do you think producers should sell oil at cost? Or is there some profit level that is "fair"?


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## topwatrout (Aug 25, 2009)

It's funny seeing how different opinions are. People who aren't in the industry are loving the prices while some of my friends in the industry have already gotten laid off due to the low prices.


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## Slip (Jul 25, 2006)

I just remember that, at the same time gasoline went high in around 2008, our economy dumped. Coincidence? Doubt it. People hurt as our money went overseas instead of our own economy.


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## chumy (Jul 13, 2012)

i'll have some oil royalties in a couple of years if I'm lucky. I'll take $150 per barrel please. I'm kind of selfish that way.


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## Rubberback (Sep 9, 2008)

goatchze said:


> Ripping you off? Do you think producers should sell oil at cost? Or is there some profit level that is "fair"?


They need to make money no doubt. But you said it be fair to the consumer.


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## V-Bottom (Jun 16, 2007)

Go fill up your vehicles and your gas cans (if you can)....prices may go back up bc of the Holidays and this Climate Change. I hope not. So take advantage of the low prices while they are here.


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## Rubberback (Sep 9, 2008)

V-Bottom said:


> ^^^^ time to get a second job like a lot of other people....


We all know that every Texans has a well in his backyard & drives a caddy. Long & lean. LOL. I'm with Johnny Cash one part at a time.
They will try & sell that stuff for the most money they can. They aren't fair trust me.
Sure if your in the buisness its all good. Spending a C-note to fill your tank is a lot of money.


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## txjustin (Jun 3, 2009)

topwatrout said:


> It's funny seeing how different opinions are. People who aren't in the industry are loving the prices while some of my friends in the industry have already gotten laid off due to the low prices.


What were their jobs? I'm curious and have been keeping watch on the layoffs situation.


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## chumy (Jul 13, 2012)

Rubberback said:


> We all know that every *Texans has a well* *in his backyard* & drives a caddy. Long & lean. LOL. I'm with Johnny Cash one part at a time.
> They will try & sell that stuff for the most money they can. They aren't fair trust me.
> Sure if your in the buisness its all good. Spending a C-note to fill your tank is a lot of money.


The past aint got nothing on what the future holds for Texas concerning oil production!!! In reference to Eagleford shale.


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## jesco (Jun 23, 2013)

grman said:


> So that does bring up an interesting question?
> 
> Are the low prices a way to punish Putin for the Ukranine?
> 
> And is the U.S. government driving the price?


 I heard that Saudi Arabia is dumping oil into the market, much to the displeasure of OPEC. Not sure if that is true. It is hurting Russia somewhat, but I think Russia makes a lot more money selling Europe nat. gas. It can't be good for American drilling jobs, from what I understand.


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## TrueblueTexican (Aug 29, 2005)

*Its not good for the oil patch*

Oil is solely responsible for low un-employment rates from North Dakota to Texas, all of us in this economic sector are driving OUR economy and propping up the rest of the country.

Remember the bottom fell out in 1980's and brings back memories of the oil industry as it was then, a decade when Texas saw spectacular growth and then an enormous bust when oil prices plummeted, taking the real estate market along and causing hundreds of banks to fail.

I hope there is not a repeat like that on the state's oil and gas horizon. Lenders and regulators have put checks in place to prevent it, for one thing, and the current oil surge shows few signs of abating.

Major shale plays fuel the nation's energy production, but I see we are starting to pick up some echoes of the overzealous lending in the 1980s.

Waaay too many drillers are in hoc up to their eyeballs bettin on the come and the banks have lent too much to speculation.

HOUSTON was a wreck after the last bust --


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## poppadawg (Aug 10, 2007)

The conspiracy theorist are saying the low prices are due to supply manipulation in order to strike a blow to the American shale oil industry, hurt the Russian economy, and diminish Isis revenue from crude. ie The Saudis are flooding the market with crude.


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## TrueblueTexican (Aug 29, 2005)

*Its the market*



poppadawg said:


> The conspiracy theorist are saying the low prices are due to supply manipulation in order to strike a blow to the American shale oil industry, hurt the Russian economy, and diminish Isis revenue from crude. ie The Saudis are flooding the market with crude.


Supply and demand - fracking has pushed out oil reserves 400 years and beyond - PEAK OIL - what a joke -almost as funny as Global warming myth -


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## Rubberback (Sep 9, 2008)

chumy said:


> The past aint got nothing on what the future holds for Texas concerning oil production!!! In reference to Eagleford shale.


That was just a pun. Talking gas prices is like talking politics. You can't ever make everyone happy. So, be it. I'm saying its hard on everyone to spend half there check on gas alone. 
I know I'll get hammered on this one but I wish we had another source besides gas to run our everyday lives. It would help put things in check. JMO.
And no I don't wanna see people loose their jobs. Who would certainly not me.


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## chumy (Jul 13, 2012)

TrueblueTexican said:


> Supply and demand - fracking has pushed out oil reserves 400 years and beyond - PEAK OIL - what a joke -almost as funny as Global warming myth -


Agree, and we don't even have the technology yet to go get the majority of the oil that is down there. We will though, in due time


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## TrueblueTexican (Aug 29, 2005)

*Toyota*

Is offering it first Hydrogen Fuel Cell Car for sale next year

Look for Gas to Liquids markets to take off if this proves good technology- invest in hydrogen conversion.

Still will be a win for natural gas production.

We live in a GLOBAL Hydrocarbon Economy - no matter how the green people parse it.


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## Jolly Roger (May 21, 2004)

Oil drives Texas economy. Texas is one of the largest producers of Oil in the world. The thought that this is a small sector in Texas is laughable.

If oil prices crash, it will hurt all Texans.


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## chumy (Jul 13, 2012)

Rubberback said:


> That was just a pun. Talking gas prices is like talking politics. You can't ever make everyone happy. So, be it. I'm saying its hard on everyone to spend half there check on gas alone.
> I know I'll get hammered on this one but I wish we had another source besides gas to run our everyday lives. It would help put things in check. JMO.
> And no I don't wanna see people loose their jobs. Who would certainly not me.


I know what you meant. i shouldn't have responded but felt the need to.


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## Rubberback (Sep 9, 2008)

chumy said:


> I know what you meant. i shouldn't have responded but felt the need to.


Hey no problem here. I was raised by an oil man.I just hate to go to the pump & spend all that money & I'm sure I'm not the only one. Something needs to change people can't afford it. 
Natural gas would help Texas has a lot of that too.


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## topwatrout (Aug 25, 2009)

*Jobs lost*



txjustin said:


> What were their jobs? I'm curious and have been keeping watch on the layoffs situation.


Offshore roughnecks, mechanics & roustabouts for drilling companies


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## txjustin (Jun 3, 2009)

topwatrout said:


> Offshore roughnecks, mechanics & roustabouts for drilling companies


About the jobs I figured. I feel for them and hope they save some money for a possible downturn. May they find something quickly.


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## Texas Jeweler (Nov 6, 2007)

Some jobs on the tool side are already scaling back. Do not be suprised to see oil go to $62.5) for WTSC.


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## chumy (Jul 13, 2012)

Rubberback said:


> Hey no problem here. I was raised by an oil man.I just hate to go to the pump & spend all that money & I'm sure I'm not the only one. Something needs to change people can't afford it.
> *Natural gas* would help Texas has a lot of that too.


Yep and the majority of oil wells i see in SE texas are just flaring that gas off. pity


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## myprozac (Feb 7, 2006)

capt. david said:


> This is good and bad. Good for consumers, more money not spent on gas. Bad if they don't spend the savings on other goods. Also bad for those cities and states that depend on the oil market for jobs. Not a good thing for Texas. I really believe that the economy thrives on 90.00 a barrel for oil.


X2. Funny how some people don't realize it. Oil companies not producing will definitely lead to layoffs in all job sectors.


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## TrueblueTexican (Aug 29, 2005)

*Its trickle down*

The oil sector is still flush with cash from drillers, to midstream, to refineries, I agree a good price point for Brent is 90bbl - when it gets to 70 we are in for a tough ride-

I don't think many truly realize whats propping up the economy -

If the money isn't flowing it affects everything from discretionary purchase to groceries.

Its almost like a Ponzi scheme


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## goatchze (Aug 1, 2006)

Rubberback said:


> They need to make money no doubt. But you said it be fair to the consumer.


What is fair to the consumer is to sell oil at the market price. Back in early October, it was $100/bbl. Now it is less.



Rubberback said:


> That was just a pun. Talking gas prices is like talking politics. You can't ever make everyone happy. So, be it. I'm saying its hard on everyone to spend half there check on gas alone.
> I know I'll get hammered on this one but I wish we had another source besides gas to run our everyday lives. It would help put things in check. JMO.
> And no I don't wanna see people loose their jobs. Who would certainly not me.


You want Natural Gas.


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## Rubberback (Sep 9, 2008)

goatchze said:


> What is fair to the consumer is to sell oil at the market price. Back in early October, it was $100/bbl. Now it is less.
> 
> You want Natural Gas.


I just want another avenue to rely on. Having just one source is not working.


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## Bayscout22 (Aug 9, 2007)

greenhornet said:


> I hope they start selling it for 99 cents a gallon, keep on dropping!
> 
> I can not be convinced that higher prices on gas and all of our goods (due to shipping costs) is good for the economy. *It's good for a very small sector of our economy* and I will not shed one tear for that sector.


Please enlighten us. What is this "very small sector of our economy" you speak of?


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## muney pit (Mar 24, 2014)

But we were running out of oil a few years ago. :/


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## dwilliams35 (Oct 8, 2006)

boat_money said:


> oil may be at a three yr low but check it's current price at @ $75/barrell and compare that to the last 30 years. most producers are still making big margins...
> 
> http://www.macrotrends.net/1369/crude-oil-price-history-chart


Yep, and we all know that the energy sector is utterly immune to inflation..


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## dwilliams35 (Oct 8, 2006)

chumy said:


> The past aint got nothing on what the future holds for Texas concerning oil production!!! In reference to Eagleford shale.


As long as the price of oil stays above the shale production cost, that is..


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## myprozac (Feb 7, 2006)

Jolly Roger said:


> Oil drives Texas economy. Texas is one of the largest producers of Oil in the world. The thought that this is a small sector in Texas is laughable.
> 
> If oil prices crash, it will hurt all Texans.


X2


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## cloudfishing (May 8, 2005)

Winter blend fuel always drives the prices down !


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## fishin shallow (Jul 31, 2005)

When will boat prices go down? They all cried that increase was due to oil prices.


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## Rubberback (Sep 9, 2008)

The oil co. are getting rich & the rest of us have to pay. Sure people in the oil industry will tell you different. I would too.


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## Shady Walls (Feb 20, 2014)

I wish we would get rid of OPEC, United Nations, and strategic oil reserves. Oh yea and ethanol blended gas.


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## Rubberback (Sep 9, 2008)

Shady Walls said:


> I wish we would get rid of OPEC, United Nations, and strategic oil reserves. Oh yea and ethanol blended gas.


Yes! Get rid of gas that ruins my engines & cost me an arm & leg to buy. I agree.
Great point I pay out the ying yang to buy gas & then have to buy additives. Give me a break.


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## Jolly Roger (May 21, 2004)

Shady Walls said:


> and strategic oil reserves


Why the strategic oil reserves?


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## juan valdez (Jun 21, 2014)

Honest question here but how is it acceptable for oil to spike and drop so easily and so drastically. Over$100 in just a few months in 2008. Seems crazy to me. 
All I know though is gas at $4 sucked. Even over 3 I don't like. I think worst I saw was $5 couple years ago when I lived near DC.
I saw something the other day that said at $75/bbl it's not cost effective to drill. Compare oil prices from 1999 to today and even after inflation it was still lower. How is it not profitable?


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## Jolly Roger (May 21, 2004)

juan valdez said:


> Compare oil prices from 1999 to today and even after inflation it was still lower. How is it not profitable?


 cost more to transport compared to the past, cost more to store compared to the past, cost a LOT more to drill, etc....


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## zack3476 (Jun 22, 2012)

My employer (and I'm sure other production companies) will consider stopping drilling activities if there is a sustained price below $70/bbl. Horizontal drilling and fracking are very expensive. That will lead to the loss of rigs, which in turn will result in a rather immediate loss/slowing of a significant number of jobs in the upstream and midstream sectors which will hurt Texas. I'm good with $90-$100/bbl.


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## Slim-N-None (Sep 16, 2005)

juan valdez said:


> Honest question here but how is it acceptable for oil to spike and drop so easily and so drastically. Over$100 in just a few months in 2008. Seems crazy to me.
> All I know though is gas at $4 sucked. Even over 3 I don't like. I think worst I saw was $5 couple years ago when I lived near DC.
> I saw something the other day that said at $75/bbl it's not cost effective to drill. Compare oil prices from 1999 to today and even after inflation it was still lower. How is it not profitable?


For a major most of the fields around here are not profitable and have been sold off to independents, a 10 mmcf a day well is almost not profitable to them i would bet, but its a barn burner for a smaller shop and can 2x or better on the return. So what im saying is, profitable is in the eyes (economics) of the holder.


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## juan valdez (Jun 21, 2014)

Jolly Roger said:


> cost more to transport compared to the past, cost more to store compared to the past, cost a LOT more to drill, etc....


$30 more? Is that not a direct result of higher gas prices for transport? Also maybe too for storage. I'd guess EPA/govt plays a role in storage increase though.



Slim-N-None said:


> For a major most of the fields around here are not profitable and have been sold off to independents, a 10 mmcf a day well is almost not profitable to them i would bet, but its a barn burner for a smaller shop and can 2x or better on the return. So what im saying is, profitable is in the eyes (economics) of the holder.


Yeah I can see that. Makes sense

Thanks for the input gents. As an outsider all I really compare is historical oil price to gas price compared to current.

Can anyone provide insight into the huge swings in price? Besides the generic cop out of supply vs demand


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## juan valdez (Jun 21, 2014)

zack3476 said:


> My employer (and I'm sure other production companies) will consider stopping drilling activities if there is a sustained price below $70/bbl. Horizontal drilling and fracking are very expensive. That will lead to the loss of rigs, which in turn will result in a rather immediate loss/slowing of a significant number of jobs in the upstream and midstream sectors which will hurt Texas. I'm good with $90-$100/bbl.


Haven't we been fracking for decades?


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## Empty Pockets CC (Feb 18, 2009)

Saudi trying to squeeze the U.S. Shale play is all that it is. Gasoline has become much more elastic these days. Fuel efficient cars and such. 
I don't have a dog in this fight but this is Texas and in Texas we have a robust economy because of oil and the dollars they spend here. Both on people and in towns. 
I'm fine with high oil prices as long as I see a robust Texas economy. A rising tide floats all ships in the harbor...if your ship doesn't rise then you might be in the wrong boat...


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## Trouthunter (Dec 18, 1998)

> HOUSTON was a wreck after the last bust --


So was I lol...I sure remember 1982 and 83.

TH


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## Zereaux (Jul 18, 2006)

The early eighties weren't fun, we had contracts for hundreds of thousands of dollars worth of tools & equipment cancelled almost overnight. A lot of companies failed.
Houston took a bad hit, but so did most all of Texas. I'll gladly pay $3/gal in exchange for not having to go through that again. We had a $40million/year gross sales business one year, then basically had to start over in new markets the next year.
Boom & Bust -history of the oil patch...


Sent from my iPad using Tapatalk HD


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## DonnyMonty (Apr 27, 2009)

What kind of yahoo is going to compare the price of ANYTHING today to the price in 1975, 1985, or 1995. Costs go up, prices go up. It is economics. Should we start a thread about the price of milk being $4.49/gallon?? That's $189/bbl!!! Fact is that the break even price of one bbl today is close to $60-70 (mas o menos depending on play) so at $75/bbl you are going to have companies that cut capital spend. This will in turn cut revenues of mom & pop service companies who will then have to cut jobs. YES, it will be good for the broad US economy to have lower prices at the pump (and in refineries), but here in Houston where everyone in the city is in 'the business' (in one way or another), it will be bad. 



Should this topic be moved to the bungle? Let's go fishing - this rainy weather is making me testy.....


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## topwatrout (Aug 25, 2009)

*Gas*



chumy said:


> Yep and the majority of oil wells i see in SE texas are just flaring that gas off. pity


Well a lot of that gas is H2S...a poisonous gas that they have to burn off which comes up with the natural gas. As well, we have plenty of natural gas reserves.


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## Stumpgrinder (Feb 18, 2006)

topwatrout said:


> Well a lot of that gas is H2S...a poisonous gas that they have to burn off which comes up with the natural gas. As well, we have plenty of natural gas reserves.


Oddly, if you flare off and burn H2s at the refineries, the environmentalists have a meltdown. There is no rhyme or reason in the realm of governmental controls . I don't care , it just baffles me


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## juan valdez (Jun 21, 2014)

DonnyMonty said:


> What kind of yahoo is going to compare the price of ANYTHING today to the price in 1975, 1985, or 1995. Costs go up, prices go up. It is economics. Should we start a thread about the price of milk being $4.49/gallon?? That's $189/bbl!!! Fact is that the break even price of one bbl today is close to $60-70 (mas o menos depending on play) so at $75/bbl you are going to have companies that cut capital spend. This will in turn cut revenues of mom & pop service companies who will then have to cut jobs. YES, it will be good for the broad US economy to have lower prices at the pump (and in refineries), but here in Houston where everyone in the city is in 'the business' (in one way or another), it will be bad.
> 
> Should this topic be moved to the bungle? Let's go fishing - this rainy weather is making me testy.....


What kind of yahoo compares milk price to oil? If you wanna play that game chocolate syrup is the real black gold. Guess what though? My truck doesn't run off chocolate syrup. Also milk prices didn't at one point rise to 4 times the price from twenty years ago, then come tumbling down, then spike to three times as high, and now tumbling.

It's fairly easy to see what equivalent price is in today's dollar compared to 20 yrs ago or whichever year you wanna compare. Oil prices have exceeded that amount and oil companies say it's due to cost. So my question is, what drove the higher cost. 
There's really no need to be a drama queen about it. I'm not in the industry, I'm not bashing those that are, I have several in myfamily who are, and am curious. Here is a place to ask those who are and get some, in most cases, valid and knowledgeable answers. I don't want to see people lose their jobs either. My company just shed about 75% of it's workforce and I'll be lucky if I make it through the holidays with mine. Working in a cyclical industry sucks but that's the game we chose to play. Hopefully some of these guys saved money for a rainy day


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## Jerry-rigged (May 21, 2004)

Last night the radio show "Street Talk" (5:00pm, 700am) hada good segment on this. The Street talk guy is a financial planner/investment planner, a numbers guy, not a feels good guy. He had two point - 

1 - in year 2000, crude was around $20/barrel. From 2000 till now, crude has mostly tracked up, with a few down spikes. in that same time frame, Texas has created about 40% of ALL jobs, nation wide. A large % of those jobs are high paying jobs. The rest of the country had job growth with a flat income gain.

2 - in theory, low gas prices = more money in the pocket of consumers = economic growth. However the Data does not support that. The data shows that when oil/gas prices drop, people save or pay off bills, and worry about their job = no extra spending. Also, lower O/G price = layoffs = lower consumer spending.

KSEV has podcast for the last week, if you want to hear his show.


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## V-Bottom (Jun 16, 2007)

Made a short trip to Missouri City the other day and noticed that gas prices were a lot higher as you went that way from Hitchem'cock. We are at 2.39 here and TC Bucees I believe was 2.31. Prices zoomed to 2.79 in Missouri City. $ .40 higher than what we pay here. Now why? The wife says your in the High Rent District. The same thing happens near NASA.... They have the $$$$$ to burn.


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## Whitebassfisher (May 4, 2007)

I will always remember what an economics professor told the class:
"A powerful person with the best economic minds available still can't control the economy." 
I do believe supply and demand will take care of the oil/gasoline situation.


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## cadjockey (Jul 30, 2009)

Well, on the bright side of high oil prices... Many of our fabricators and machine shops decided to jack up their prices and increase lead times over the last five years because they had all the high-dollar "oil field work" they could handle. They are starting to call looking for work again. Sorry boys, we had enough of the "oil premium" BS and outsourced 90% of our heavy fab and machine work to MX, China, and India. Same or better quality at 50-70% of the cost. Win-win. Take your oil money and choke on it.


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## Shady Walls (Feb 20, 2014)

What's not spent at the pump will be spent somewhere else. Let's open up federal land and drill, stop importing oil. The great state of Texas Is or has the third highest debt of $341billion. Stop taxing new oil, old oil, that's coming to our production plants. We haven't built any refinery's since the 70's, lots of add ons. More drilling more refineries more jobs. Hell's bells I'm going fishing.


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## cfulbright (Jun 24, 2009)

Iv believed for years that $2.50 a gallon is fair for everyone. If they want more margin then be more efficient. I know there is a lot of people in the oil industry around here, but there are 1000x more that are not.


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## chumy (Jul 13, 2012)

cadjockey said:


> Well, on the bright side of high oil prices... Many of our fabricators and machine shops decided to jack up their prices and increase lead times over the last five years because they had all the high-dollar "oil field work" they could handle. They are starting to call looking for work again. Sorry boys, we had enough of the "oil premium" BS and outsourced 90% of our heavy fab and machine work to MX, China, and India. Same or better quality at 50-70% of the cost. Win-win. Take your oil money and choke on it.


Quality is a relative term.


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## cloudfishing (May 8, 2005)

With the Keystone being shut down you can expect higher prices .


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## ol' salt (Jun 11, 2006)

You're too young. I remember $.18/gallon


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## Johnny9 (Sep 7, 2005)

Do any of you remember the 80's when oil fell to $10/bbl? I do and our economy stopped dead and took several years to return. Too low of gas prices are bad for our region that depends on oil. Also if oil gets down to $70/bbl all the Shale Trend will dry up and workers going home.


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## Longshot270 (Aug 5, 2011)

I know I had to double check earlier when the pump clicked at $56. Normally it clicks around $72. Had to make sure I had more than 20 gallons pumped.

Saved $16 this week in fuel. :dance:


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## scwine (Sep 7, 2006)

cloudfishing said:


> With the Keystone being shut down you can expect higher prices .


It(Keystone pipeline) will get the go ahead here in the near future. 
I hope oil goes back up to at least $90-100/ bbl. :work:


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## Dboll (Jan 24, 2012)

*Drill Baby Drill!!!*

That's all I gotta say about that...:walkingsm


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## V-Bottom (Jun 16, 2007)

Walmart in La Marque 2.41
Bucees in TC 2.34
Hitchcock 2.39 all as of yesterday


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## GulfCoast1102 (Dec 30, 2013)

I'm ignorant here in terms of the oil/gas business. I'm not looking for an argument, i'm looking to have someone educate me. I'm young compared to some here, i'm 30 years old. From the time I was old enough to notice (around 1990 or so) through the 1st half of my senior year of high school (2001/2002), I remember gasoline hovering around $1.00/gallon. I hear (err, read) some folks talking about the "bust" in the oil business, and how it hurt the Houston area. 

Was Houston in a rut, continuously, from 1990 till 2001/2002 when fuel prices started climbing? I remember getting annoyed when gas hit $1.50/gallon. General panic started when it hit $2.00 to $2.50 per gallon. I said "screw this!" and bought a motorcycle when it hit $3.00/gallon the 1st time around 2005 or so. 

I'm struggling to believe that oil companies are going to shrivel up and die if gas isn't $3.00/gallon +. Again, i'm not in the business, but i watched prices soar 300-400% in a 5 year period, and now that it's dropped back to about 250% of what it was in December of 2001, folks aren't happy (folks in the oil biz anyhow).


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## atm_93 (Mar 16, 2005)

chumy said:


> Quality is a relative term.


Quality isn't relative. One's ability to recognize and appreciate the value of quality is. If you think you're getting the same level of product from small 3rd world suppliers you're either not spec'ing it or not inspecting it.
Google P36 for a spectacular example of this mentality.


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## fastpitch (Oct 15, 2004)

atm_93 said:


> Quality isn't relative. One's ability to recognize and appreciate the value of quality is. If you think you're getting the same level of product from small 3rd world suppliers you're either not spec'ing it or not inspecting it.
> Google P36 for a spectacular example of this mentality.


^^^^This.


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## AUSTEX50 (Feb 28, 2013)

*Low Gas Prices*

We live in a trickle down economy when gas prices are low crude oil prices are low and there is a slow down in our energy industry we all suffer.


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## chumy (Jul 13, 2012)

atm_93 said:


> Quality isn't relative. One's ability to recognize and appreciate the value of quality is. If you think you're getting the same level of product from small 3rd world suppliers you're either not spec'ing it or not inspecting it.
> Google P36 for a spectacular example of this mentality.


thanks for correcting, that's what i meant to say.


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## DANO (May 23, 2005)

I am all for it,......as long as it dilutes a certain individuals incessant whining on the matter. 









P.S.
I tried !! :rotfl:


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## Its Catchy (Apr 10, 2014)

The bottom line is this. Pump prices have decreased because of the domestic shale play. Due to advances in technology we can use directional drilling along with multi-staged fracking to produce oil from the actual source rock.

There is actually a surplus of light sweet at Cushing. The Saudi's and the rest of OPEC are losing market share and they are cutting the price in an effort to keep market share.

It's good for the consumer, terrible for those who work in the oilfield. If it gets worse and jobs are lost it will start effecting other areas of the Texas economy. Less cars will gets sold, housing will drop, restaurants etc...


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## Brian Castille (May 27, 2004)

If fuel prices drop $1 due to the price of oil dropping like it has, it saves me and my wife about $2,000 in a year.

If our oil & gas stocks drop ~10% due to the price of oil dropping like it has, it drops our portfolio value a lot more than $2,000 in a year. 

Yes, lower fuel prices are nice, especially on the water but there is an effect that goes with it.


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## GulfCoast1102 (Dec 30, 2013)

Brian Castille said:


> If fuel prices drop $1 due to the price of oil dropping like it has, it saves me and my wife about $2,000 in a year.
> 
> If our oil & gas stocks drop ~10% due to the price of oil dropping like it has, it drops our portfolio value a lot more than $2,000 in a year.
> 
> Yes, lower fuel prices are nice, especially on the water but there is an effect that goes with it.


You ought to diversify your investments. Too many eggs in one basket is a no-no.


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## goatchze (Aug 1, 2006)

Slim-N-None said:


> *For a major most of the fields around here are not profitable and have been sold off to independents,* a 10 mmcf a day well is almost not profitable to them i would bet, but its a barn burner for a smaller shop and can 2x or better on the return. So what im saying is, profitable is in the eyes (economics) of the holder.


This is not true. A few leases may have been sold by some of the majors, but in general, the majors have been late to the game when it comes to unconventional plays and are having to buy their way in. It's true that it is a completely different business model than what they're accustomed to with lots of small assets with short lives instead of a few large assets with longer lives. One of the things that makes the shale gas revolution so exciting is it's lots of small companies growing rapidly that make up for the bulk of production.

That said, the majors getting in the game now. Conoco has set up a group to go after shale plays, and BP just created a new, separate company to do the same. Most of the other majors are doing the same by setting up subunits that are structured to make shale oil profitable.

As for the price break point, there is no single "below this amount, no one makes money". Every company has a different efficiency, in terms of the money it takes them to get a barrel out of the ground and to market, as does every play and even areas of different plays. For some of the least efficient companies, that dollar amount may be $75. For others, it may be $55 before they hit the "break even" point.

The life of most of these wells is relatively short with steep production declines. Companies are typically having to drill baby drill just to keep production numbers up. The net effect of this is, as the price of oil drops, domestic production can pull back relatively quickly. This gives some buoyancy to the price, which means that it's unlikely to completely crater.

And last, when comparing historic oil prices to present, keep in mind that for "unconventional oil", the cost to produce a barrel is significantly greater. Likewise, that barrel may be lighter and may get discounted further below WTI. So it really is apples-and-oranges trying to hash out profitability 10 years ago versus today.


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## Brian Castille (May 27, 2004)

GulfCoast1102 said:


> You ought to diversify your investments. Too many eggs in one basket is a no-no.


Oh, they are - for that very reason.


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## JJGold1 (May 6, 2010)

Lower fuel prices are good news for pretty much everyone other than energy producers and their shareholders.


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## czbrian (Aug 16, 2011)

The o&g industry and the US just needs to get its LNG shipments going and the loss in oil price will be made up for by the better prices for natural gas.


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## Rubberback (Sep 9, 2008)

JJGold said:


> Lower fuel prices are good news for pretty much everyone other than energy producers and their shareholders.


Bingo! The truth has come out. I'm a shareholder but paying those ridiculous prices for gas has caused all my growth to be spent at the tank. So, reality is I'm not making squat.


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## V-Bottom (Jun 16, 2007)

Let them producers and share holders live off some of that money they have been bagging and leave us po folks alone......hope it gets lower


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## Slim-N-None (Sep 16, 2005)

V-Bottom said:


> Let them producers and share holders live off some of that money they have been bagging and leave us po folks alone......hope it gets lower


And when folk loose their jobs in the evil big money oil patch because prices are low, and cant do things that support your way of bringing in an income, i wanna hear you chanting the same thing, deal?

By the way, what do you do for a living so i can ponder where it falls in the grand scheme of things?


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## Pocketfisherman (May 30, 2005)

Stumpgrinder said:


> Oddly, if you flare off and burn H2s at the refineries, the environmentalists have a meltdown. There is no rhyme or reason in the realm of governmental controls . I don't care , it just baffles me


Doesn't it combine with water vapor in the air when burned and form sulfuric acid / acid rain? That might have something to do with it.


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## dwilliams35 (Oct 8, 2006)

V-Bottom said:


> Let them producers and share holders live off some of that money they have been bagging and leave us po folks alone......hope it gets lower


... and let's see how many working men we can take down with it....

I'll give you a clue: "producers and shareholders" aren't the first ones to get laid off..


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## tboltmike (Jun 21, 2006)

fishingcacher said:


> I saw on TV a report about gasoline at 2.46. I was disappointed to find out it went done to 2.43 at the Sam's club on Eldridge south of Westheimer.:headknock


 You mean 029.9 cents?


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## Its Catchy (Apr 10, 2014)

I am no marine biologist but I bet trout populations are negatively correlated to the price of crude. 

During the good oil years there are thousands of more boats on the water and more fishing pressure. When oil crashes, boats and trucks are repossessed and the bays get less pressure. 

Personally I know at least 200 roughnecks that won't be able to pay for their F250 Extended Cab and 24 ft. Kenner if they lost their jobs for more than one month.


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## ChasingReds (Jul 31, 2009)

Its Catchy said:


> The bottom line is this. Pump prices have decreased because of the domestic shale play. Due to advances in technology we can use directional drilling along with multi-staged fracking to produce oil from the actual source rock.
> 
> There is actually a surplus of light sweet at Cushing. The Saudi's and the rest of OPEC are losing market share and they are cutting the price in an effort to keep market share.
> 
> It's good for the consumer, terrible for those who work in the oilfield. If it gets worse and jobs are lost it will start effecting other areas of the Texas economy. Less cars will gets sold, housing will drop, restaurants etc...


Believe this to be true, unconventional boom has given us some energy security. The process is inherently more expensive and companies are looking for a quick return on their investment which has led to a glut of supply. If the US were permitted to export crude, believe prices would stabilize, but as right now, we can only export refined product and LNG.

BTW - paid $2.35 yesterday at Costco which is equivalent to $1.75 in 2001 prices which is about 50 cents higher then I remember paying back then - so in fact, are prices increasing related to inflation???


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## Bobby (May 21, 2004)

Cut the higher paid hourly workers pay in half and the CEOs pay in half and see if that would lower the price. Then they could operate on $ 30 a barrel


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## awesum (May 31, 2006)

fishingcacher said:


> I saw on TV a report about gasoline at 2.46. I was disappointed to find out it went done to 2.43 at the Sam's club on Eldridge south of Westheimer.:headknock


I'm guessing you don't have an offshore boat with a 150 gallon tank to fill like many of us do.hwell:


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## Rubberback (Sep 9, 2008)

Bobby said:


> Cut the higher paid hourly workers pay in half and the CEOs pay in half and see if that would lower the price. Then they could operate on $ 30 a barrel


Yea! Then they would be right in line with the rest of the world.


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## Long Pole (Jun 5, 2008)

Rubberback said:


> Yea! Then they would be right in line with the rest of the world.


Yeah, let's no keep America where you make your own bed. Make everyone equal. :headknock


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## V-Bottom (Jun 16, 2007)

TC Bucees....2.30


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## JJGold1 (May 6, 2010)

$2.29 at the Shell on 96 in League City. Drop baby drop!!! :dance:


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## GulfCoast1102 (Dec 30, 2013)

I'm gambling on whether to fill up my boat's gas tank now, or wait another week or two. 

I run 89 Octane. Current prices sure do beat the $3.50+ that it had been. :dance:


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## kweber (Sep 20, 2005)

Its Catchy said:


> I am no marine biologist but I bet trout populations are negatively correlated to the price of crude.
> 
> During the good oil years there are thousands of more boats on the water and more fishing pressure. When oil crashes, boats and trucks are repossessed and the bays get less pressure.
> 
> Personally I know at least 200 roughnecks that won't be able to pay for their F250 Extended Cab and 24 ft. Kenner if they lost their jobs for more than one month.


seen more than one bust...
seen lotsa youngsters w/ fat and later flat pockets, too. it's called learning to live w/in your means.


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## Its Catchy (Apr 10, 2014)

kweber said:


> seen more than one bust...
> seen lotsa youngsters w/ fat and later flat pockets, too. it's called learning to live w/in your means.


I'm getting the feeling that we may see these bumper stickers again around town.

â€œPlease God, let there be another oil boom. I promise not to **** it all away next time.â€


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## sweenyite (Feb 22, 2009)

OPEC must be trying to drive the price so low that Eagle Ford can't compete... then they'll raise it through the roof... or maybe not.


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## Rubberback (Sep 9, 2008)

I paid 2.61 a gallon today. Talked to a welder that worked for navasota oil co. said they are booming.I'm liking it cheaper. Go lower Probably, see more people going on more road trips & not hurting the economy as all the oil co employees are saying. Heck you might see more gas being consumed. 
Double the amount of gas being sold & nothing lossed & all & all it will help the economy. I hope, will see. Just a thought.


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## agonzales1981 (Jun 12, 2008)

Serious question, I remember about 14-15 years ago gas being .99 and staying in that area for a long time. This was before the economy went bust and things were booming. What was the price per barrel back then? I guess when I see the big oil companies making tens of billions in profit every quarter I don't really have a whole lot of sympathy when the price drops like it has been. I've got some good friends in the business and I'll be honest I think they get paid way too much for doing way too little.


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## Reloading (Oct 27, 2014)

A "refinery issue" or two to create a shortage and the price goes right back up hwell:


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## jaime1982 (Aug 25, 2009)

Reloading said:


> A "refinery issue" or two to create a shortage and the price goes right back up hwell:


What kind of issues do they have to create a hold back?


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## zack3476 (Jun 22, 2012)

As I stated earlier:

http://m.bizjournals.com/sanantonio...ev7a59Jt5FXo+vIaA0a277784&t=1417054811&r=full


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## jaime1982 (Aug 25, 2009)

Im sure the upstream sector will slow but Im curious about reloading's comment about what people think the refinery creating an issue does to manipulate prices.


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## sweenyite (Feb 22, 2009)

jaime1982 said:


> What kind of issues do they have to create a hold back?


When is the last time a NEW refinery was built in the USA? All of our refineries are running at max rates, way above their original design rates. If one of them takes an unexpected shutdown due to equipment failure or an accident, it will affect prices. 
Here's an idea... find a way to loosen some of the EPA and other regulatory restrictions just enough to make it profitable and possible to build a few more sizable refineries right here in the good ole US of A and we will see lower prices at the pump. Good luck with that though.


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## Reloading (Oct 27, 2014)

jaime1982 said:


> What kind of issues do they have to create a hold back?


 See below.....



sweenyite said:


> When is the last time a NEW refinery was built in the USA? All of our refineries are running at max rates, way above their original design rates. If one of them takes an unexpected shutdown due to equipment failure or an accident, it will affect prices.
> Here's an idea... find a way to loosen some of the EPA and other regulatory restrictions just enough to make it profitable and possible to build a few more sizable refineries right here in the good ole US of A and we will see lower prices at the pump. Good luck with that though.


 Ummm hmmm. And none of these refineries have been updated or expanded, right? We won't see continued lower prices at the pump because Big Oil doesn't want lower prices.

We're short refining capacity but we're able to ship fuels out to other continents :question:


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## jmreeves624 (May 27, 2014)

Fracking has been around since the 50's, but has not been a profitable way to produce oil until now with increased cost and newer technology. Operating cost in shale ares are much higher than in the middle east. So they can flood the market with oil and artificially and temporarily lower prices the set themselves up to raise price and pedicure even more in the future. We should lower our dependence on OPEC, start exporting oil and set a true market value price on oil. That way the US economy as a whole benefits with fair prices at the pumps for consumers and profits for US producers in the states to provide good quality jobs here in the US.


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