Gas prices - I like it to go lower...

[Bacstar]

So, I don't get it. I'm loving the direction gas prices are going right now - down, the lower the better.

In the past, people or news listing the bad affects of high gas prices. Now, I'm reading about the bad affects that is coming with the low gas prices...

 

[nakedfrog]

That's just how it goes.

 

[Phoenix86]

That's just how it goes.

 

[dualsmp]

There is negative reporting now on low gas prices because oil shale production got in too deep and tons of people lost their jobs. Oil has be above a certain price for shale production to be profitable.

 

[GRIFFIN1]

Back when it was going up, everyone was talking about how high gas prices would drive up the cost of everything. Now that gas prices are going down shouldn't the prices of everything in the grocery store be going down? I can't say that I have noticed food getting cheaper.

 

[Imp]

Back when it was going up, everyone was talking about how high gas prices would drive up the cost of everything. Now that gas prices are going down shouldn't the prices of everything in the grocery store be going down? I can't say that I have noticed food getting cheaper.

Can't make your money upstream (i.e. selling crude), make your money downstream (selling gasoline, diesel)?

 

[rh71]

People just like complaining. That's all it comes down to.

 

[dainthomas]

There is negative reporting now on low gas prices because oil shale production got in too deep and tons of people lost their jobs. Oil has be above a certain price for shale production to be profitable.

So basically it's bad for the .2% with jobs related to oil shale and fantastic for everyone else? Sounds terrible. :\

 

[Bacstar]

I handle the fuel receipts for my company and noticed we saved a bunch of money this year. Now the only complaints my boss has are about overtime...

It's been a few months now, and like someone said about grocery prices not going down. I'm wondering the same thing about everything else. An Alaskan newspaper had a story the other day about how the AK state budget is really going to be hit hard next year, and will start dipping into the PFD as well as look into implementing an Income tax due to the decrease in oil prices... government still needs its money, guess they'll get it from somewhere. Alaska's problem is more about less oil being pulled out of the ground though.

 

[petyr_]

Unless your country increases the taxes as the gas price itself goes down...

 

[Red Squirrel]

Companies are too greedy. "oh noes prices are down we need to lay off people!". They managed fine before when prices were that low before, why the sudden panic now? They're still making trillions of dollars either way.

Sucks for places like Alberta that don't have many other industries, the people are suffering from it, but in general for the rest of us it's a good thing that the prices are lower.

I'm enjoying the near dollar per litre pricing though. I filled up the other day at like $1.10/litre ($4.18/gal). It did go lower than that for about a day some time last year though but it's very rare it gets that close to the $1 mark. I remember before 9/11 when it was actually under a dollar. It went up to over a dollar pretty much the same day. Most gas station signs were not equipped for that extra digit, it was kinda humorous. Comes to show though, gas prices are just a big game. They just randomly set them on world/political events.

 

[bradly1101]

Cheaper gas prices = more driving = more CO2 and pollution = more extreme weather = more deaths and respiratory health effects/cancers

Yay, cheap gas!!!

 

[lxskllr]

Cheaper gas prices = more driving = more CO2 and pollution = more extreme weather = more deaths and respiratory health effects/cancers

Yay, cheap gas!!!

Don't forget "Time to buy a huge truck to take Dylan to soccer practice, cause prices will never be high again; certainly not within the life of the vehicle" :^S

 

[Imp]

Don't forget "Time to buy a huge truck to take Dylan to soccer practice, cause prices will never be high again; certainly not within the life of the vehicle" :^S

Ah... if you want to head over to Alberta, or maybe North Dakota, rumor has it that a lot of trucks are for sale because of the downturn.

 

[KeithP]

In the past, people or news listing the bad affects of high gas prices. Now, I'm reading about the bad affects that is coming with the low gas prices...

These days media outlets (they no longer qualify as being called news) will spin anything in any fashion they see fit to get eyes on their content. They are all garbage.

You don't "get it" because their coverage defies logic.

-KeithP

 

[Bacstar]

Or it is OPEC's master plan to drive these shale companies out of business, and jack up prices again when they're all gone?

http://www.msn.com/en-us/money/mark...-opec-ramps-up-pressure/ar-BBnYkEI?li=BBnb7Kx

 

[Imp]

Or it is OPEC's master plan to drive these shale companies out of business, and jack up prices again when they're all gone?

http://www.msn.com/en-us/money/mark...-opec-ramps-up-pressure/ar-BBnYkEI?li=BBnb7Kx

Very complicated topic but the fear is that once oil prices go up, wells could be turned back on. That would lead to prices going down. Perpetual cycle...

Bankrupt producers probably won't be around to do that. But Exxon and Chevron could probably buy a bunch of them out and do fine.

 

[ImpulsE69]

They are predicting it will go as low as $1.50 by summer. E-85 is already down to $1.49 here.

 

[Phoenix86]

Very complicated topic but the fear is that once oil prices go up, wells could be turned back on. That would lead to prices going down. Perpetual cycle...

Bankrupt producers probably won't be around to do that. But Exxon and Chevron could probably buy a bunch of them out and do fine.

Shale was turned in in a relative heart beat and can likely do so again. Also, US and EU demand is trending down and could be making seriously deeper cuts in demand due to political winds shifting towards environment. Asia is spiking heavily though. Peek oil is coming sooner rather than later, it's just happening on demand, not supply.

 

[TheSlamma]

OP and McOwned can be good friends

 

[Bacstar]

OP and McOwned can be good friends

Just more news on the topic of oil and gas prices. I just find these types of stories come out when prices are high and now prices are going low.

It's like one study says coffee is bad for you; couple weeks later, it's now good for you :\

 

[ElFenix]

Back when it was going up, everyone was talking about how high gas prices would drive up the cost of everything. Now that gas prices are going down shouldn't the prices of everything in the grocery store be going down? I can't say that I have noticed food getting cheaper.

prices are sticky downward. first off, there's other factors than the cost of energy involved in food production - in specific, drought conditions in california have raised the prices of food and that's independent of oil prices. second, there's also probably some longer term supply contracts that were locked in when transport prices were higher, and you have to wait for those to unwind. third, industries like making a profit and so they're not going to bring the prices down if they don't have to.

beef prices do seem to have come down, though. prices were up due to drought in texas and that broke - again, independent of energy prices.

 

[WaTaGuMp]

Which way is down? Because guess what shitty fucking piece of shit state has gone up?

 

[preCRT]

Not just cheaper gas, but cheaper heating oil is wonderful. Paying $1.46/gal instead of $4.58/gal is fantastic. It means folks won't have to choose between eating or freezing in areas like the northeast where most home have oil burner heat.

 

[Exterous]

Part of the issue is not that gas is cheap it's how cheap it got so quickly. Not to mention this happened during a time when commodities were already under pressure. To make matters worse oil companies and related industries had been a strong point in the US economy and stock market helping provide momentum. Now they are a drag (except for oil storage companies) during a time that could really use a stronger push