Posted on 01/13/2015 1:55:20 PM PST by tcrlaf
Lower fuel will promote a boom. Is that wrong? Please tell me how that's wrong.
Is that to say all past significant gasoline price drops did not create a boom, but this one magically will?
I suspect, you don’t understand how many direct and indirect jobs are driven from the oil/gas industry.
The State Journal
Federal report finds that removing crude oil export barriers would lower gas prices, promote domestic production
Posted: Oct 20, 2014 2:02 PM CDT
By Sarah Tincher, Energy Reporter
A report released from the Government Accountability Office Oct. 20 found that removing export barriers for U.S. crude oil
could incentivize higher domestic production, create more jobs, lower the trade deficit and put downward pressure on gasoline prices.
Now go search for Lower gas means more jobs and read up. Or however you
want to search for that news. I'm not chasing all the reports because
you don't have a clue about what "I mean".
Do you equate “removing crude oil export bans” with a ~50% drop in oil prices?
That article is talking about creating greater demand for US oil production and creating jobs in the oil industry and supporting business. That is the opposite of what is happening now.
In 1998-99 and late 2008, 2009 we had significant drops in gasoline prices.
Can you point to the job booms in those time periods?
Reality is, there is some job increase with lower gasoline prices. But there is also significant job losses for the total US economy at the same time from the oil industry, and steel, pumps, motors, etc companies that sell to them.
I said "Cheap fuel will fuel our economy into a Boom if our Government allows it.
How does that confuse you?
Right.
You pointed to an article talking about growing the oil industry by removing the export ban and creating more oil industry jobs, and their supporting businesses.
That is the opposite of what is happening now. The oil industry is pulling back and laying people off.
We have gone through price drops and oil industry busts before. Where were the economic boom in our economy in 1998~99, and late 2008~09?
The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds
http://beforeitsnews.com/alternative/2015/01/the-crashing-price-of-oil-is-going-to-rip-the-global-economy-to-shreds-3091312.html
As I write this, the price of U.S. oil is sitting at $45.76 a barrel. It has fallen by more than 60 dollars a barrel since June. There is only one other time in history when we have seen anything like this happen before. That was in 2008, just prior to the worst financial crisis since the Great Depression.
But following the financial crisis of 2008, the price of oil rebounded fairly rapidly. As you will see below, there are very strong reasons to believe that it will not happen this time. And the longer the price of oil stays this low, the worse our problems are going to get. At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses, a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before. So let’s hope that a very unlikely miracle happens and the price of oil rebounds substantially in the months ahead. Because if not, the price of oil is going to absolutely rip the global economy to shreds.
The piece noted contractors
The work force includes lots and lots of contractors. It would seem that the $1 billion cut would directly involve the designers of shelved or delayed future projects.
For projects under contract one wonders if there will be a slowing resulting in a decrease in contractor workers. At 6.8 billion there would seem to be lots of both direct and contract employees to remain
Most of the work force involve in Capital Expenditures for the oil/gas industry is contractors (like me).
IMO, the 14-year period of low oil prices from 86-99 extended the Reagan boom. When oil prices moved up after 99, it exacerbated the recessionary effects of the dot com bust. $100 oil slowed the global economy to a crawl. Sub-$50 oil will give the global economy a real shot in the arm, and that may be what the Saudis intend. The fear is presumably of a global spiral into economic depression, which would tank oil demand to the levels that sent prices into the 30's in 1998. The quintupling of oil prices after 99 has been a major economic drag. The effect of this spike on world economies mirrors that of OPEC's post-Yom Kippur price hikes in the 70's and early 80's.
I read the different articles to show the oil price drop with the slowing global oil demand are the result of a global economy already in decline.
My suspicion is that we’re viewing the Democrat Economic Effect. Obama and the Dems have created a regulatory and tax nightmare for the economy. That’s slowed growth in the US (and I blame Bush for all the bailouts, TARP, etc.) which is 25% of the world economy.
Worse, is that the rest of the world doubled down on socialism. China, Europe, and Japan all spent themselves silly. They depend on us for the spark to keep their socialist dreams alive. They’ll have to reset to capitalism at some point, hopefully sooner rather than later.
The mere existence of the GOP Congress will mitigate some of the worst Obama has done, but they have to act to free up commerce. Americans when left alone thrive. All this crony capitalism misallocates resources and benefits politicians at the expense of the people. It’s a mess.
What will you do if your contract isn’t renewed?
Exactly.........
Was that specific to me or a rhetorical question?
That type of reply...will not fly.
FReepmail me if you’re going to answer it personally. My guess is that you’ll find a replacement and not sit around.
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