for the economy


Its like bizarro world. I mean where were these people when it was 4 dollars a gallon. guys this is a good thing! or when the economy was in the shitter but exxon posting trillion dollar profits.

I've been hearing the talks about low priced gas being a sign of a bad economy but like you I'm wondering how so. It's not like the economy was stellar when gas was $3.30 - $4.00 a gallon. All I know is that lately I haven't been crying at the pump like I have been over the past so many years.


Since 1976

but then you just think about what was happening when gas was high
and how white people i mean repubs blamed obama for the high prices


then we just all broke out into laughter and realised how insane that sounds

There are massive layoffs planned in oil producing states. Major decreases in expected state tax revenues. Real estate prices in Texas are already falling.

A lot of the recovery following this past recession was attributed to the energy industry. A big fall in oil prices could unravel that progress.

It's short sighted to say high prices => bad, low prices=> good (unless you want to score cheap political points). There are lots of intermediating effects, so the overall impact is difficult to discern.

it's not shortsighted in even the slightest. It may mean layoffs for oil producers, but in reality it -shouldn't-. It means layoffs because they don't want to take a chance of returning to pre-$3.00/gal profit margins.

Oil will remain profitable because a cheaper product means they will likely move more product to compensate. A person who refused to fill up their tank and drove as little as possible at $4.00/gal might fill up and top off more often and drive more places at $2.00/gal.

When oil first hit over $3.50 a gallon, every corporation across the board reported they would need to raise prices to compensate for getting products to market. That $2.99 1lb package of Eckrich smoked sausage turned into a $3.50 13oz package and they blamed high gas for it. Our shrinking quantities and higher prices have all been blamed on high oil prices.




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forcing myself to actually respond to you is like bathing in ebola virus. - Binlahab

Like there is stupid, and then there is you, and then there is dead. - VAsBestBBW

R.I.P. Disco D

prices drop suddenly and its a problem. its like bizarro land

Traditionally they always fall during this time of year
Most home sales are in Spring/Summer so folks can transition their kids to new schools at an opportune time

But Houston real estate prices are being corrected because they were over inflated in the first place

House sold 5 years ago for $180 has been rehabbed and now selling for $900k - $1.2M
right on the EDGE of the hood as well

and the oil industry disappeared, it would be the best thing that ever happened to the planet. Those people could find other jobs and if they couldn't, fuck 'em someone's gotta take one for the team. If there was no more disease and doctors became obsolete, would you be like, nah man, people need to get sick, think about those poor doctors without jobs now?

This shit is like when Philly was putting in city wide wi-fi and one of the arguments against it was that some cable company employees would lose their jobs. So fucking what!!!

Do I really care if Alberta or Venezuela or some other place leaning heavily on oil has problems if it means alleviated burdens for most of the world?

I'd also point out that the U.S. is not everything (just a lot of things), there are places where gas prices have actually gone up. I went to Peru in February and then again in October, the prices were higher there and elsewhere in South America, too. I don't know about Europe but I know in China gas has fallen while it has risen in India. So it's not an across-the-board drop either.

so there's that.

But he will just blame the west

I just wonder how long it's going to last

money has been free damn near since 08
i think they are scared of what might happen if interest rates go back up to 7-8%
even with the free money and lower gas prices many ppl are saving vs. spending
probably because they are scared of another collapse and/or are un(der)employed still

The reason oil (and by extension gas) was so expensive because of economies like in China and India where they used gas for manufacturing. Their economies are slowing so the demand for oil is dropping, thus causing a drop in prices. Also, with respect to the U.S., I read that the U.S. has been able to reduce its dependence on foreign oil. So that's another reason for cheap gas here.

I don't see how cheaper gas is bad for THIS economy. Prices of goods and services should go down. People will have more disposable income. It might hurt the oil companies and their employees in the U.S. a little. But the rest of the country would be better off. People would be more likely to buy cars and to drive more often.

the country that is most contributing to global climate change.

:shrug:

But for the economy it would. People are more likely to drive places to spend money if gas were cheaper. More people going out for entertainment purposes. With respect to buying cars, people might be willing to purchase a new car now that prices are low. And with newer cars having better gas mileage, it might mean less older cars with poor mileage and emissions off the roads.

Although gas is cheaper people still are struggling to afford basic items and that last crises is convincing people to stockpile more

So the "savings" people have from gas prices is not being put back into the economy to stimulate GDP.

Then there is quantitative easing....
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http://prettyperiod.me/

http://whenwomenrefuse.tumblr.com/

.
.
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"America, stop turning our Court Houses of Justice into Dens for Justified Murderers."

I know people are repeating shit they here on the news but when I ask them to elaborate they start stuttering.

Many juices, for example, no longer come in 64oz cartons even though they look like it. They're more expensive than pre-$3-$4 oil and you're getting less for your money. High oil and gas prices were blamed for this by all companies involved because high oil prices meant higher fertilizer and plastic costs and high gas prices meant an increase in the cost of transporting the product to market.


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forcing myself to actually respond to you is like bathing in ebola virus. - Binlahab

Like there is stupid, and then there is you, and then there is dead. - VAsBestBBW

R.I.P. Disco D

The price of commodities have shot up because of the drought. Those commodities in turn are used to create the basic goods that people need.

Price of a gallon of milk in 2013 3.43
" 2014 5.14
Price of a dozen eggs in 2013 2.68
" 2014 3.16
Price of loaf of bread 2013 $1.41
" 2014 2.07

And chicken and beef and so on. Now those may not seem large jumps to you because you may have more disposable income but to people who are not making good wages (because those have been stagnant) and have to feed a family..its a lot. So like a I said low gas prices dont mean anything if you still cant afford the BASIC NEEDS.

And to you legsdiamond please save your snark. I am not talking out my ass its my field of study. Now if you want me to start talking about quantitative easing, yield curve and altering debt structure I will. FOH
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http://whenwomenrefuse.tumblr.com/

and went up even more like, last week.

less demand for oil means less manufacturing meaning the prices of other goods will go up

My question is how does lower gas prices INCREASE the price of goods.

Milk went up from last year because the demand for milk overseas shot up due to poor production.

as of a result of rising gas prices


are not instantly dropping in price when gas prices go down for a brief time?




ya i think blaming current prices being(remaining) high for other things on a temporary and sudden drop in gas prices


i think it would have to be more long term...like maybe just as long as prices were high?

i dont know im not a plumber

http://www.nydailynews.com/news/politics/schumer-calls-probe-high-price-plane-tickets-article-1.2045481

Texans think they run the world and its economy because of O+G

They don't realise that other industries such as healthcare is pretty insulated from O+G daily prices

>Texans think they run the world and its economy because of
>O+G
>
>They don't realise that other industries such as healthcare is
>pretty insulated from O+G daily prices
>

when pressed she said it's bad for Big business..

ummm, OK. So why the fuck should YOU care about that?

bad for big biz means less jobs

we can talk shit about big biz being the devil but in they end...

they employ a large chunk of the pop

profits.


poor guys

>profits.
>
>
>poor guys

Yes their raw profits are high (on the order of 10s of billions of dollars for the big oil producers).
But their costs are extremely high as well. It costs a lot of money to get that stuff out of the ground.
As a result, the profit margins for oil producers are comparable to most other industries in the economy.
When oil prices we high, profit margins were like 8-12%. Compare that to tech companies (Google, Apple, Microsoft, etc.) if you think they are profiting too much.

and just because their costs are high doesnt somehow make me feel better about their obscene "raw" profits as you put them.


Im not sure if I understand the distinction you are trying to make though. Profit is profit. the costs are spent, the profit is made. exxon made 44 billion in 2013


anyways, im not the most qualified to speak on this but I dont think the economy as a whole is gonna suffer if exxon only PROFITS 20 billion this year

If its high its bad for the consumer, of its low people get laid off.

I'm sorry but everyone can't win. If people get laid off because of low prices at last they can put a little something in the gas tank to find a new job.

There are scaling problems. For example, try to compare Exxon with a smaller oil producer (XYZ corp). Exxon had net income of like $30 billion last year. Let's say XYZ had net income on $200 million.

Will you look at those numbers and say Exxon is making obscene profits and the XYZ is more reasonable? No, you really can't make any kind of judgments based just off of those numbers.

Profit margin says how much of their sales actually turn into profits (as opposed to covering costs). If Exxon and XYZ are identical except for the fact the Exxon has much more customers, Exxon will have much higher profits.

Last year, Exxon had a profit margin of about 7%. That is for every $1 of stuff they sold, they profited 7 cents. Is that obscene? How about compared to other industries?

Energy sector is taking a hit but a lot of other industries laid people off because of high gas prices.

Stocks will take a hit but they made a shit load when barrels were $125

http://foreignpolicy.com/2014/12/18/why-would-the-saudis-crash-oil-markets-iran/

♥♥Church Diva♥♥

Saying it's bad for the economy because people at oil companies will lose money is like feeling sorry for the people working on the Death Star when Luke and them blew it up.

Yeah the execs make BANK
but i know faaaar to many "regular folk" that work in O+G just pulling down a bi-weekly paycheck.

>Saying it's bad for the economy because people at oil
>companies will lose money is like feeling sorry for the people
>working on the Death Star when Luke and them blew it up.

BINGO

LOL...from what i'm reading in here that's what it sounds like

when i win at the gas pump, someone loses somewhere else... i can't front, i'm good with me winning at the pump while the other parties readjust...it's been over a decade of high prices, i'ma enjoy them being lower while i can...

Tesla.

since November due to low gas prices.

http://www.oilandgas360.com/tesla-ceo-musk-loses-1-billion-oil-gasoline-prices-drop/