# Oil prices and economic decline



## wyowoodwrker (Jan 21, 2015)

So with the plummeted oil prices, and new of 20k plus people that have or will loose thier jobs. Companies like Baker hughes, Halliburton and Slumberger and the actual drilling rigs it's not looking good for the economy in general. I see and hear people elated with the cheaper fuel prices, what most fail to understand is that affects many people's jobs. It doesn't matter how cheap the gas is if you're not able to buy any. Unemployment is a joke and only a single person living on someones couch could survive on that. I guess what I'm saying is that is there any one else as freaked out about this as I am...for the second time in a year I'm likely to be unemployed again...

Reactions: Agree 2


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## Mike1950 (Jan 21, 2015)

wyowoodwrker said:


> So with the plummeted oil prices, and new of 20k plus people that have or will loose thier jobs. Companies like Baker hughes, Halliburton and Slumberger and the actual drilling rigs it's not looking good for the economy in general. I see and hear people elated with the cheaper fuel prices, what most fail to understand is that affects many people's jobs. It doesn't matter how cheap the gas is if you're not able to buy any. Unemployment is a joke and only a single person living on someones couch could survive on that. I guess what I'm saying is that is there any one else as freaked out about this as I am...for the second time in a year I'm likely to be unemployed again...


 Bummer - I know it is hitting the industry hard......


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## wyowoodwrker (Jan 21, 2015)

It is hitting very hard, so far they company I currently work for hasn't announced any layoffs but it's only a matter of time I'm afraid.


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## Mike1950 (Jan 21, 2015)

Youngest son is an engineer in Houston. Hitting deepwater Very hard. I know the feeling Construction all my life feast or famine.........


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## Sprung (Jan 21, 2015)

Nick - I certainly hope that you don't get hit with a layoff.

Having lived in North Dakota for 4 1/2 years (moved to MN about 10 months ago), I got to see some of it all first hand, even though I lived on the other side of the state. Plenty of work to be had for anyone willing to work. ND's last oil boom crashed - and I can't imagine how bad it would be for ND and so many other states/areas - and especially the people - if this boom crashed.


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## Tclem (Jan 21, 2015)

My brother works in the oil field. Myself and some others just had this conversation. I can look at it both ways. Yes. Many people are losing jobs but what about the hundred million that can actually put gas in their cars now to get to work due to low prices. What about the cost of companies that pay fuel prices and had to lay off because fuel was so high. What about jacked up prices of milk and every thing else due to high gas prices. I really do feel bad for people losing jobs but how many lost jobs due to high gas prices. Some if these guys making 100-200 thousand a year and spent it all and didn't save any (like guys I know) shouldn't be crying now.

Reactions: Agree 4


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## Mike1950 (Jan 21, 2015)

Tclem said:


> My brother works in the oil field. Myself and some others just had this conversation. I can look at it both ways. Yes. Many people are losing jobs but what about the hundred million that can actually put gas in their cars now to get to work due to low prices. What about the cost of companies that pay fuel prices and had to lay off because fuel was so high. What about jacked up prices of milk and every thing else due to high gas prices. I really do feel bad for people losing jobs but how many lost jobs due to high gas prices. Some if these guys making 100-200 thousand a year and spent it all and didn't save any (like guys I know) shouldn't be crying now.



Valid points Tony

Reactions: Agree 1


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## Schroedc (Jan 21, 2015)

What worries me is that all the other prices that went up with the increase in fuel prices might not come down if the big companies see it as just a way to increase their profits by keeping prices where they are at. There has also already been talk about increasing the fuel taxes to fund other things so we could see prices go back up in fairly short order........

Reactions: Agree 1


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## Tclem (Jan 21, 2015)

Schroedc said:


> What worries me is that all the other prices that went up with the increase in fuel prices might not come down if the big companies see it as just a way to increase their profits by keeping prices where they are at. There has also already been talk about increasing the fuel taxes to fund other things so we could see prices go back up in fairly short order........


Exactly right about everything that went up due to high gas prices. Yes, hopefully they will come down. As far as taxes. They are always going to try and tax something. Crazy world of let's tax tax tax. But smaller companies, like a logger and another small business owner friend of mine, can put another truck on the road and hire someone else. I know first hand of it happening. Also, people like myself will drive to Nashville in a couple of weeks because I can use the saved gas money to put Ito a motel room. Think of the millions of people who are thinking like that also. Again, I have family in the oil field and hate to see them possibly lose their job but how many have and will lose their jobs with high gas prices. Think about wood. The higher it gets the less we buy. Takes a job away from a logger

Reactions: Like 1 | Agree 1


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## JR Custom Calls (Jan 21, 2015)

Oil is so high because they pay workers too much. Unskilled labor shouldn't pay $75k or more. JMO

Reactions: Agree 2


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## Mike1950 (Jan 21, 2015)

JR Custom Calls said:


> Oil is so high because they pay workers too much. Unskilled labor shouldn't pay $75k or more. JMO


 Have you ever been to North Dakota??? $75K is not enough to work outside it the winter there!!! Even the rabbits have electric underware!!!
No way can you blame the worker for the cost of gas. Now the EPA- Regulations- fines. If an oil rig kills a bald eagle it is 10's of thousands if a windmill farm kills a hundred- It is oh well. Solar plant fries birds in mid air = oooppps. In our state we pay windmills to stay idle when there is plenty of water power. As my lovely wife calls them as we go to the coast- BOONDOGGLE.

Reactions: Agree 1


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## Tclem (Jan 21, 2015)

Mike1950 said:


> Have you ever been to North Dakota??? $75K is not enough to work outside it the winter there!!! Even the rabbits have electric underware!!!
> No way can you blame the worker for the cost of gas. Now the EPA- Regulations- fines. If an oil rig kills a bald eagle it is 10's of thousands if a windmill farm kills a hundred- It is oh well. Solar plant fries birds in mid air = oooppps. In our state we pay windmills to stay idle when there is plenty of water power. As my lovely wife calls them as we go to the coast- BOONDOGGLE.


I agree with that. It would take a million dollars a year to get me to that place. Maybe offshore. Well I won't miss a day with my little buddy for a million dollars and a bucket of your maple burl. Lol


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## Sprung (Jan 21, 2015)

I agree with Tony - there are two sides to everything. It's hard to see people lost jobs, but maybe those who lose their jobs because of lower oil/gas prices will be able to find jobs elsewhere in jobs that might be created because of lower fuel costs.

I drive a lot of miles for work each year. Thankfully they are reimbursed, but we still have to work the fuel costs into our budget. Also do a lot of personal driving. In recent years I've driven anywhere from 25k to 40k miles a year - that's a LOT of money into the tank. Our budget is rejoicing right now with under $2/gallon gas - and we're hoping it stays low, especially through the summer, as this is the year we'll be driving about 2k miles in a period of 8 or 9 days to go see my family in MI. The last time we did that trip, gas was about $4/gallon and we put over $700 into the tank...



Mike1950 said:


> Have you ever been to North Dakota??? $75K is not enough to work outside it the winter there!!! Even the rabbits have electric underware!!!



-20F (or colder). 30mph+ sustained winds. No trees or anything to block the wind. What's not to love? 
Not to mention the astronomically high cost of living right now out in the oils fields in ND - 1 bedroom apartments can sometimes be in excess of $2k, even $3k, a month! 

I have a friend who is a Sheriff's Deputy out in the middle of the ND oil boom and his wife is a postal carrier. Between the two of them, they are making an absurd amount of money - and are being very wise about how they spend it and save it. Even McDonald's is paying starting wages in excess of $15/hour out there because that's the only way they can find anyone to work for them!

Reactions: Agree 1


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## wyowoodwrker (Jan 21, 2015)

Valid points Tony, there are a lot of people that also will benifit from lower energy prices, and while some commodities prices could come down as well I doubt that they will.... the oil field affects alot more then some people take into consideration, transportation industry, lodging, restaurants, vehicle sales, construction.....just to name a few. Then there's the other areas road and utility construction to supply the production facilities..... all of those jobs will disappear as well it's not just the rough necks and servicing companies that will see layoffs....every one will see the impacts of this wether your a waitress or a pipe fitter....it's all connected

Reactions: Agree 1


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## Tclem (Jan 21, 2015)

wyowoodwrker said:


> Valid points Tony, there are a lot of people that also will benifit from lower energy prices, and while some commodities prices could come down as well I doubt that they will.... the oil field affects alot more then some people take into consideration, transportation industry, lodging, restaurants, vehicle sales, construction.....just to name a few. Then there's the other areas road and utility construction to supply the production facilities..... all of those jobs will disappear as well it's not just the rough necks and servicing companies that will see layoffs....every one will see the impacts of this wether your a waitress or a pipe fitter....it's all connected


Yes. As is everything is connected The problem I see is that the high cost of oil drives the prices of everything up and they may not come down but hopefully so. It is a cycle. The cost of anything and everything causes o e group to suffer and another to prosper. Which group prospers the most fron low oil prices. I guess I just keep seeing all these guys down here fussing who have made more money the past couple of years than most of us in a career and not saved one penny. Hunting trips. New this. New that and now they are mad because we like the low oil prices. We don't set the prices. So much oil was produced and now it is cheap. Supply and demand.

Reactions: Agree 1


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## wyowoodwrker (Jan 21, 2015)

I agree there are many people who are overpaid for what they actually do and we're very irresponsible with thier finances, same can be said for the other side as well though.... The point I'm trying to make is that while the immediate impact is directly oil field companies, there will be impact to all industries mostly services type but everyone will see some impact. To say I'm not thankful for cheaper gas prices is a lie, it does make life a little easier when that price tag at the pump is less. I'm just saying that this will eventually effect us all.

Reactions: Agree 1


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## JR Custom Calls (Jan 21, 2015)

I don't think it'll have as big of an impact as you do... I mean, sure, those people in oil communities that are making insane money to do the same jobs some people make minimum wage at may have some backlash, but overall, it *should* have a positive effect on the country as a whole. If diesel would come on down with gas, we should see lower prices on almost everything... groceries being most noticeable. Even things like shipping could go down, or at a minimum, stay at the price they're at for much longer. 

These companies are saying they can't make money when oil is $40/bbl... they can, they just need to stop paying their unskilled laborers insane amounts of money. The cold argument doesn't work for me. Texas isn't cold (unless you ask Kevin haha)... they make good money there too. Think of all the construction workers, postal workers, etc that are out in the cold every day as well... they don't make that kind of money. Don't get me wrong, kudos to those guys who bust their butts working in the oil fields. I know it's not easy work. I'm just not going to defend them when they fuss about oil prices and the uncertainty of their highly overpaid jobs.


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## wyowoodwrker (Jan 21, 2015)

JR Custom Calls said:


> Oil is so high because they pay workers too much. Unskilled labor shouldn't pay $75k or more. JMO


Working on a rig is definitely NOT unskilled labor, they are paid what they are because of the risks, and the fact that they're rarely home. It takes skill to do that job as well physical work long hours and dirty nasty work.


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## JR Custom Calls (Jan 21, 2015)

wyowoodwrker said:


> Working on a rig is definitely NOT unskilled labor, they are paid what they are because of the risks, and the fact that they're rarely home. It takes skill to do that job as well physical work long hours and dirty nasty work.



I disagree, but agree. Like I said in my last post, I realize it's not easy work. Nasty conditions, long work hours, etc. And it's dangerous. But, that's not skilled labor. Skilled labor is machinists, carpenters, and other occupations that require an education (whether that's in a school or through an apprenticeship). But, like I also said, it's just my opinion.


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## SENC (Jan 21, 2015)

Mike1950 said:


> Have you ever been to North Dakota??? $75K is not enough to work outside it the winter there!!! Even the rabbits have electric underware!!!
> No way can you blame the worker for the cost of gas. Now the EPA- Regulations- fines. If an oil rig kills a bald eagle it is 10's of thousands if a windmill farm kills a hundred- It is oh well. Solar plant fries birds in mid air = oooppps. In our state we pay windmills to stay idle when there is plenty of water power. As my lovely wife calls them as we go to the coast- BOONDOGGLE.


THIS!!! It isn't the lower gas prices that are the problem, it is the incredible burden of regulation and taxes. From EPA to Obamacare, the cost of doing business has skyrocketed. Businesses can't reduce these costs, they can only reduce payroll... or close. Eliminate the unnecessary government and union crap and gas could go down another 40% without impacting jobs or pay rates (and spur growth in jobs in other sectors at the same time).

Reactions: Agree 4


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## Tclem (Jan 21, 2015)

SENC said:


> THIS!!! It isn't the lower gas prices that are the problem, it is the incredible burden of regulation and taxes. From EPA to Obamacare, the cost of doing business has skyrocketed. Businesses can't reduce these costs, they can only reduce payroll... or close. Eliminate the unnecessary government and union crap and gas could go down another 40% without impacting jobs or pay rates (and spur growth in jobs in other sectors at the same time).


Well with low gas prices I'm going to drive to north carolina

Reactions: Funny 1


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## SENC (Jan 21, 2015)

Tclem said:


> Well with low gas prices I'm going to drive to north carolina


Love to have you, Tony. I live in western NC near the mountains, you know.

Reactions: Funny 1


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## Mike1950 (Jan 21, 2015)

SENC said:


> Love to have you, Tony. I live in western NC near the mountains, you know.


 
Yes right by the ocean- watch it @Tclem I think yer getting some codswallop here...............

Reactions: EyeCandy! 1


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## Tclem (Jan 21, 2015)

Mike1950 said:


> Yes right by the ocean- watch it @Tclem I think yer getting some codswallop here...............


I'll do the exact opposite


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