Posted on 08/02/2016 4:28:47 AM PDT by HomerBohn
American producers should withdraw participation in OPEC and set their own prices. Charge whatever they wish within reason.
The gross profit margin for a gallon of gas in America today, is what it has always been, on average, .08 cents per gallon. Retail gas prices fluctuate with crude prices and supply vs. demand, the gross profit margin per gallon remains roughly the same at all times.
Except they keep raising the taxes on it.
You don’t understand how prices work.
——But when rigs get shut down, that means that good paying jobs are lost.——
Or, the drilling operations are complete.
A new well will not be started under existing market circumstances
To assume continuous expansion is a fallacious fantasy
I feel terrible about paying $1.93 for gas. (That was yesterday; it may be less today.) Oh, I feel just terrible.
Oil workers unemployed - bad.
Farmers lose money and have bad year from drought - bad.
Factory workers lose job to third worlders - good.
It’s a strange world.
All these people hallucinating future trade wars when we’re in the middle of one. OPEC is determined that the USA will not have a powerful energy complex.
It’s not helping either that China just dumped a shitload of refined oil products on the world market. Bad timing for those waiting for oil to go back up. Oh, and BTW, when are we gonna start yelling at the Federal and state governments about oil profiteering? They make a hell of a lot more on a gallon of gas than the oil companies do.
CC
If the unemployment rate was really below 5% this wouldn’t even present a problem, because an economy that robust would easily absorb 35,000 lost jobs. But, in reality the economy is very sick and weak. The level of lies and corruption in the government institutions has never been higher. The Federal government must be dismantled and rebuilt from scratch.
Meanwhile, propane prices remain high.
Yesterday, bulk delivery (248 gals) cost me $1.835/gal...that was WITH a .10/gal. summer fill-up discount.
It’s only bad for people who work in the oil industry, like I used to. For everyone else it’s fantastic.
Not to mention all the other business that thrive on low energy prices.
To me a thriving DOMESTIC industrial sector is way more critical than the energy sector.
So why is the rig count going up in the US?
Can you prepay with your oil supplier, lock in current pricing?
I paid $.99 for a recent summer propane fill (310 gallons) in SE Minnesota and was upset that my provider was 10 cents higher than other local companies.
Oil is a cost component for end-stage goods. People do not want to own oil, they want to own what oil makes possible. Lower cost is a good thing, not a bad thing.
Now of course a lower market price for crude or other hydrocarbons means less drilling and lower employment in the sector. And the employment in drilling tends to be in the manual labor more than office work. So, that is where people suffer when prices fall.
But overall, the lower the cost of energy, the greater the ability of our economy to grow. Nat gas is very difficult and costly to export, so lots of fracking yields lots of gas. The gas that is not stranded ends up in the market and helping to drive down the cost per btu of anything that has access to gas and can burn it. Nat gas also has some substitution effects against liquid hydrocarbons.
Since when are high costs good?? This is just silly thinking.
I don’t know
The premise of the article is that rig jobs are in decline
That’s why the futures markets exist.
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