Saudi Arabia to lower oil prices, the houston boom is over

Only people in the oil and related industries share this sentiment ... for others ... it's good for us to have low gas prices and jobs too ...

 

Luckily, your CEO got his bonus off this past year's income. He's got a family to feed.

 

I'd rather have a rifle in my right hand than have a job or a silly tank of gas for that matter. What good is money or driving to Denny's if you can't protect yourself?

 

i just passed a gas station earlier that had gas at $1.85, i never Never thought i would see that again.

although i still have to put in high octane or supreme in my car it is still a really nice price.

 

i forgot to mention that the station was on parmer in austin.

 

Da1 rejoices

 

I'm curious how all this is going to change the Houston real estate landscape. The oil price crash combined with building everywhere around town would seem to setup a pretty flooded real estate market pretty soon. My mom is planning on retiring and moving to Austin around September or so. I mentioned to her that it might be a good idea to consider selling her house now and doing some sort of lease back deal if possible.

What do u think brahs? Am I being too paranoid/cautious? Her house is near Hwy 6 and Clay so it's somewhat close to the energy corridor but she also has about 1 1/3rd acres of land and that's relatively hard to find out here now.

 

I used to work in the Copperfield area. NOV, Drillquip, Weatherford, etc have rather large offices in that area. My co-workers however lived all over the place - Woodlands, Spring, Champions Forest, Chinatown (Bellaire), and myself near the Memorial Park area.

 

Timing the market is pretty much impossible, but if she's going to move anyway, why risk holding on to it? If she's happy with the selling price now, I don't see why not.

Hard to see prices going much higher after the run they've had.

 

Feels good...



Thought it was rotated...oh well you can still read it.

I haven't paid that little per gallon since 2006(?)

 

Interesting. If/when she lists, let me know.

 

There was a good discussion of the local housing prices on this thread from a few weeks back. I still hold onto my belief about the future valuation of Houston housing prices.

http://bbs.clutchfans.net/showthread.php?t=260116

 

Yeah I don't see prices running higher it's just the fact that she wasn't planning on retiring until August. That's when her long time boss is retiring. The oil price collapse has kind of thrown a monkey wrench into that from my perspective. Also she works for an oil services firm so she sees the changes coming pretty fast as well. She's moving into my current house in North Austin and I'm moving into a house near downtown so she has a place to move so that's not an issue.

It is basically just a matter of convincing her to change her timeline and also convincing her that she doesn't need to fix up minor stuff with the house. She's ready to move, but she has been there for decades and it's where I grew up so there is that emotional attachment too.

If it was me I would have the house on the market now.

 

Sure I'll send you a message.

 

Falling oil prices right now is just a redistribution on wealth. Most larger oil companies cost of drilling per barrel is around 25-35 per barrel. It is all exploratory oil is taking the biggest hit. The drop in oil prices benefit the end users and not profit margins of large corporation. Therefore in the short term, low oil prices is taking from large companies and giving back to the end users. What you will see happen is other segments of business will pick up and thrive due to low oil cost. Ie: steam ship lines , fedex ups, and other industries.


All of this is done to discourage fracking and a search of alternative fuel and energy. Long term beyond 1 yr. you can really see a contraction within the Houston economy as smaller exploratory companies will get hit the hardest as their cost to drill is close to parity as oil prices. Either they get swallowed up by the larger one and the marjority of their employees get laid off.

Regarding the real estate market in Houston - houses here are atill under valued. However the property tax structure will hinder to a degree the forward momentum, especially if the oil industry start to contract. As wages will freeze and the thought that higher paying jobs leave the market. All the expansion done in Houston is based off the estimated tax dollars the city is expecting to receive which at this point is more than the actual it will receive in the next 24+months if the oil prices are depressed longer than 1 yr

 

According to chevron's 10k its $19.57. Maybe exploration will go down.

Its http://www.sec.gov/Archives/edgar/data/93410/000009341014000011/cvx-123113x10kdoc.htm

 

One thing positive about the price fall for Houston mentioned in the Chronicle today, is that it makes the chemical industries more profitable. Most all of those steaming steel towers between Deer Park and Beaumont are making things other than gasoline. It said they were predicting strong job growth.

I don't think (with a little oil bust experience) it will decrease Houston housing prices, it will just slow down the rate they were rising.

 

Jumping into conversation, but yeah, if you factor in exploration and development/drilling capex in addition to the operating/production costs, many potential projects will look less economically viable with a lower baseline for pricing expectations.

 

I don't even understand how this relates to the topic at hand. ????

I live in an Oil & Gas driven city. Maybe you've heard of it: Houston? Has an awesome NBA team? If our main source of income suffers, we all suffer. Think in more broad terms, my friend.

I also don't work in the industry at all. I work in Healthcare.

 

Halliburton and Baker Hughes as well and it's not related to the merger.