Quote:
Originally Posted by Hugh.vines@att.net
What are you going to do without gas
|
Maybe you know something that I don't but I haven't heard anything about a gas shortage?
What I do know is oil companies are suffering due to the low price per per barrel. "Worked in the industry for 35 years".
We are all enjoying the low price of fuel now but it comes with another price, the downturn of the oil industry.
Oil companies have what is called a lifting cost. It's what it cost them to produce a barrel of oil. That price is different with each company. That cost per barrel can be as low as $20 per barrel for some companies and can go much higher with other oil companies.
In other words some oil companies are loosing money producing oil while others are barely breaking even.
New production will be halted during this downturn. Oil companies will not do anything that they don't have to at this point to try to keep their lifting costs as low as possible. "Anything in my above statement is broad and encompasses a lot of things that I won't go into here".
This is where a domino effect starts. Service companies, construction and other companies will start to suffer.
We all know what happens then, from the oil companies on down, they start cutting back and one of the most powerful cutbacks is cutting their workforce.
I call this a domino effect because it works its way through most facets of business.
I've survived a couple big downturns in the oil business and I can remember people who were not affiliated with the oil industry telling me that it doesn't affect them. I always told them, wait, it just hasn't gotten to you yet but it will and it always did eventually.
But a fuel shortage or outage, no. We will produce and refine.