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

Poor grammar and obviously too much Pr0n.

 

Well, the US has to fight for their best interest.

If this leads to another collapse(It won't) and an easy way out of it would be putting the pressure on the Saudis, then they will.

Simple Simple.

 

Not happening. A fraction of the USA economy will feel pain from this. The rest of the US economy actually gets a benifit.

 

The part of the economy taking the hit has been one of its few bright spots. And it's a massive hit. Everyone else gets a marginal benefit. It'll be interesting to see how it plays out.

 

Who is benefitting?

 

Johnny V8 and Wendy Tahoe who spend their income based on want over need as opposed to investing. Retail sales increase, x-mas, blah, blah.

 

Lower gas prices creates more disposable income for the consumer.

 

zero income for some O&G folks that just got laid off means zero disposable income.

 

I just filled up my tank for 25 bucks so now I can buy 10 lottery tickets!!!!!!!!

 

Lower gas prices also = good for Chemical companies

Just one example

Good for supply-chain costs for all industries (non-OG related)

More disposable income for Johnny V8, More disposable income for Charlie Entrepeneur, Walmart, etc.

 

Lower gas prices means more money in the pocket for the consumer. It also makes shipping of everything cheaper, which reduces the cost of ... just about everything (whether to the producer or to the consumer).

There's a reason why high gas prices always create a concern that we'll go into recession.

 

i have no desire to pay 25% more just to employ a couple people. Unskilled labor making 50k a year is ridiculous.

 

LOL! $50k per year? I knew a 20-year old kid in North Dakota making over $70k with benefits - he drove a pickup truck.

That being said, I don't see the drop in prices benefiting the research and development of new technology - either from O&G companies or companies from other industries. In the 1980s, the oil glut and price drop came from the lowest cost producer. Today, that glut and price drop is coming from the highest cost producer.

In my mind, saying the economy can make a pivot toward consumers is like saying China can pivot from exports to domestic demand when global demand drops off. I don't know if it is that easy.

 

Except in the first case, you're giving the consumers an extra hundreds of billions of dollars to spend. It's essentially the equivalent of a giant middle-class tax cut, except it's not financed by the government. In the China scenario, there would be no reason to expect a sudden increase in domestic demand.

 

As long as people keep coming to the ER for life threatening illnesses like runny nose and sore throat I will remain in business.

 

Are you a Kleenex salesman?

 

You sell kleenex and lozenges for a living bruh?
No hate, as long as it pays the bills. :grin:

 

Tell that to some of the people who worked at Harris Health (Harris Co. Hosp. Distr)

 

I keep hearing this, but really, is an extra, what, $80 bucks a month really making a difference to some people? I highly doubt that there is a majority of people that this short lull in gas prices will help them pay off their mortgages or students loans significantly faster. This effectively unemployed people...thousands of people and yet you're concerned about saving less than a benjamin a month and that's going to somehow improve the economy overall. Please tell me how this will significantly change peoples' spending habits.

 

Food cost drop too because transportation cost go down.

DD