[redgolum]

I don’t feel sorry for any company who forgets that commodities are very fluid things, and is swimming naked when the tide goes out.

Played to long and to hard in the energy industry. They are looking 1. Bail outs, and 2. Legislation to raise oil prices.

When oil was this cheap 20 years ago, gas was below $1.00. Now, oil is CHEAPER and gas is over $2.00 (and oil is cheaper now after inflation).

They all thought oil would go up forever, and forgot to ask the old hands about the last oil bust.

So while I feel sorry for the employees, the companies were stupid.

[Dallas59]

All companies have gone this route. Make as much as you can for your investors and screw the employees and customers. No company expect to stay in business for over a decade nowadays.

[palmer]

When oil was this cheap 20 years ago, gas was below $1.00. Now, oil is CHEAPER and gas is over $2.00 (and oil is cheaper now after inflation).

Oil was 20 bucks 20 years ago. Gasoline (which I scaled in red) mainly tracks oil (dollars per barrel in blue) with a slight lag. Gasoline is a little high relative to oil right now. That might be an indication of an anticipated oil price rise.

[Myrddin]

May writers have addressed EROI (Energy Return on Investment). In the 1800s, a single barrel of oil expended would return 1200 barrels. Lots of profit. Lots of return. Our modern civilization requires at least 20 to 1 EROI to live comfortably. We are below that now. Living with our expected "standard of living" takes more money that EROI can provide, so we borrow the difference and keep spending. Eventually, the bill must be paid or the "currency" collapses. It's inevitable. Just a matter of when the next shoe drops.