[Dnick]

Anyone else notice that the price of oil has dropped below $30 / barrel??? (Actually below $28). We should be in for some significant fuel price reductions before long if this price holds. With Iran's capacity entering the mix, I don't see too much likelihood of it shooting back up real soon (barring political turmoil of course, which comes & goes pretty quickly in some of the oil producing regions).

Anyway.... just thought I'd share for those who might not have noticed. Seems not that long ago it was bouncing between $80 & $100 / barrel.

EDIT: Here's a chart FYI:

 

[Dnick]

Good news for no one. Politicians/business will gouge the consumer and those companies will some day want to recoup their losses. Oil is a quarter of what it was and half the price to us. Funny math.

Don't forget that that "raw material" (oil) is only one component of cost for producing gasoline.... the rest is transportation (of both oil & the finished product - gasoline), processing (no small feat), and of course the never reducing portion that is taxes. So it (gas price) would never be expected to go down $ for $ (1/2 for 1/2) relative to the price of oil.

With the increasing costs of labor vs. materials over past decades & the ever increasing regulatory demand on transportation & refining activities (plus the unchanged tax portion), I'd say 50% effect might be pretty good to achieve (I wouldn't think we'd enjoy that much off the top of my head... at least not in California where we have a higher tax proportion).

 

[Dnick]

I remember someone predicting that our President was in bed with some Energy company and he will be a major figure in that industry when he leaves the White House.
What say you about the suggested $10 tax per barrel of oil. So at $28 per barrel plus $10 = 35% Tax

He'd be a liberal socialist dictator if he could get away with it. Wants to impose his values on the rest of us. Just my not so humble opinion. Don't forget that solar energy company boondoggle they'd like us all to forget (Solyndra). How much of OUR money did he give to those good old progressive-energy boys? He's DEFINITELY not a free market proponent. What ever happened to the American way.... 'been snatched by all the special interest activists.... on BOTH sides of the aisle.

So, no.... not so much of a good idea.

 

[Dnick]

I work for one of the largest energy companies in the world at one of their Appalachian business units where we drill for natural gas. It's a VERY tough time for the industry with thousands losing their jobs, small companies going bankrupt, large companies putting major capital projects on hold (or cancelling altogether) and the constant fight to keep the doors open. Oil is the lifeblood of major energy companies and will continue to be for quite a long time. The price of oil is very cyclical. It tends to go up and down in 12-18 year stints. It was extremely low in the late 90's and early 2000's, rose to record levels in the late 2000's and is now back down to record levels again. The economy of the United States follows a similar pattern. As goes oil, so goes the economy. "Experts" are predicting oil to be back up in the $50-55 range by the end of this year and to surpass $60 early in 2017. Nobody knows exactly what's going to happen, but I feel extremely fortunate to work for a large company who has the capital and ability to weather this storm.

I'm happy for you Ian. But you might want to be knitting yourself a convenient safety net via networking & job prospect seeking outside of your industry; in case they take the BIG fall, like happened back in the early '80s. I used to be in the oil tool industry, and they cut back savagely.... I had just changed companies a year earlier for a huge pay raise, so had no seniority at my new company at all when the OPEC hammer hit. Fortunately, I was able to quickly land on my feet in the defense industry (my degree & skill set were versatile across industries). It turned out to be a very good move for me, luckily.
Bottom line.... it never hurts to have feelers out to help adapt quickly in that "worst case" scenario. And looking outside of the "hurting" industry amps up your prospects big time.... maybe even exposes you to opportunities you wouldn't even have realized existed. Good Luck either way.