Y'all ready for sub $1.50 gas prices and a recession? Iran is back in the Oil Game!

Last year at this time, my band's calendar was full of lavish high-paying O&G holiday parties for the month of December.

This year, not so much...

 

I think it's been more of a correction than a downturn in housing prices. Especially here in The Woodlands, houses aren't selling in a matter of hours for above asking price anymore. People are still pricing their homes as if that's the case, though, and they're sitting on the market for 60 days or more. My wife and I are looking and we're in a position to take our time. We've made what our realtor and us feel are fair offers and have been turned down because they're so certain they are going to get closer to their asking price. We'll just wait them out because it ain't getting better and they're paying a mortgage on a house they're not living in.

 

Great for construction, manufacturing, and service economy though.

I think only local smaller oilfield service companies will be in trouble. The international giants will be streamlined but otherwise fine. It's the mom and pop service companies that will be done for. They do employee thousands in the area but this isn't 1980's Houston.

Only 3 of the top 10 local employers and 6 in the top 20 are in the oil business. Most of the top 20 are Medical, Services, and Education.

 

So we can avoid this vacillation and being beholden to countries that hate us.

DD

 

maybe the housing market will come back down to earth.

 

How about the domestic oil producers? If they can't sell their oil and make profit, maybe they should put their talent to find another source of energy where they are better than the Saudis and Iranians?

 

don't think you're following his post - the margins on the upstream side are much much higher than downstream. thusly, upstream growth has a much higher positive net effect on the local economy than downstream. they support higher numbers, wages, and anciliary growth for the economy.

downstream is doing well no doubt but it cannot make up for a drastic reduction in upstream growth. soften the blow? sure, somewhat. but you'd take upstream growth over downstream every day of the week.

 

It's nice to know the upstream guys have enjoyed that much much higher margins.

Wait, up until now, they can only sell to Americans. It's great that we have been paying for their fancy houses and Xmas parties ...
Maybe they have saved up some for a rainy day!

 

Believing countries hate us for our #freedom is always the simplest idea but usually also a naive idea as well. Almost every country only cares about how to maximize revenues and their financial footing in the world. Even under dictatorships, the ruler knows that a well fed and happy population will not revolt. This is achieved through gaining market share in whatever a country produces.

 

Freedom costs $1.05.

Still cheaper.

Wake me up when oil gets down there.

 

this has been priced in already. Oil's fairly flat today. Not news

 

Yeah, just realized that was a less than sign. I ignored his points about margins as well. Reading is fundamental.

Bust plastics and specialty chemicals is where its at right now. They're booming.

 

More middle income folks will lose their jobs, no way around that.

However for oil execs, it's the difference between hookers and blow parties to strippers and alcohol parties. Everyone has to sacrifice.

 

Air exports from IAH will continue declining in 2016, O&G companies and freight forwarders will have more layoffs and the air freight doom and gloom will continue. But this is old news actually.

It is truly amazing how the market has turned since early last summer. So brutal.

 

Perhaps you have never learned there are drawbacks to pollution?

 

Bumper sticker from the 70's



(don't know what that patch is on his arm, but I did the same one in Houston)

 

Paid $1.40 a gallon last week(with a discount)...but was in the ~$1.70 range).....certainly dropping....although it's probably already accounted for Iran...speculating

 

Stations near me went up a few cents. They were 1.75 last week but then went up to 1.79 this week.

 

Top half of the patch is the simpler British flag.