Its crazy, right?
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Oil Prices may be in for another major drop
- Thread starter NH Apache
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Its crazy, right?
Canada is the top importer for 35 states
I'm still hopeful we can avoid major problems with this NAFTA talk as it's mainly Mexico Trump talks about
I don't get what the plan is with this. Does the oil industry see the collapse of their business coming faster, whether due to regulation or due to renewable competition, than the public conventional wisdom does? Are their internals really bad so they figure they should get $35/barrel *now* before the long-term price collapses to $15/barrel because the only need for oil is in plastics?
KillerMan91
Member
Well at least Russia stays fucked financially.
NobleXenon
Member
It's many factors that are now contributing the emerging "Enernet".
djSyndrome
Member
Well timed, as Trump is about to gut the EPA and kill the 2025 fuel economy targets in the process.
Discotheque
Banned
nooo, its been quite depressing watching the canadian dollar plummet once more.
KurtSloane
Banned
What for? Most people need it cheaper.
I doubt Putin will go away though. At worst, Russia will be in a civil war like Syria, but like Assad, Putin won't hesitate to kill everyone against him.
For various reasons. Let's say I can make a decent profit when the price is higher.KurtSloane said:
TheRealTalker
Banned
just when they had that OPEC deal too
everything was a lie
and now we got Trump as the US president who is oil obsessed
well on the up side low oil prices will mean less fracking adventures due to costs
I mean there is like only 4-5 countries that can survive through this and sadly Canada isn't one of them
everything was a lie
and now we got Trump as the US president who is oil obsessed
well on the up side low oil prices will mean less fracking adventures due to costs
I mean there is like only 4-5 countries that can survive through this and sadly Canada isn't one of them
KurtSloane
Banned
Lol, clueless.
TheLostBigBoss
Banned
cheap oil is bad for the oil industry
people who work in the oil industry need oil to be selling higher so they can keep their jobs and make extra money. It's why the field was booming back in 2011/2012 when oil was well above $100.
KillerMan91
Member
Well I don't see it hurting Putins popularity that much in short term at least (He has build almost Nazi like propaganda machine in Russia) but Russia lacking money should at least prevent Russia from starting new military operations in Eastern Europe.
Why? Most civil wars had or have their roots in a weakening economy, whether it's the French Revolution or the war in Syria.
I mean, it's the worst case scenario. A Venezuelan scenario may be possible as well.
KurtSloane
Banned
Zero chance of a Russian civil war.
Its a pie in the sky scenario, Russia has been far worse off and not had civil wars.
andythinkpad
Member
Ether_Snake
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Canada will stop producing US cars, it will still import them. You think Trudeau is going to slap abbig tariff on car imports from the US? Trump has the big end of the stick, he can completely shut down US car production in Canada and use that as leverage.
Breakfast at Noon
Member
Aww I wanted to say that lol
It depends and is somewhat complex. It is immediately good for most people because that is more money in their pocket for food, bills, and discretionary spending. However, it is bad for oil businesses and the regions that depend on the oil business for jobs and tax income. Both ends of the spectrum can affect the economy.
Texas for example has lost tens of thousands of jobs due to cheaper oil. Those are all people who are no longer paying taxes and who may be receiving government benefits in some form or another. Fortunately, Texas has a pretty diverse economy even within the energy sector (natural gas, solar, wind, fracking, etc) so the state as a whole has not been hit too hard and the void has been filled by other industries growing (IT, import/export, healthcare, defense, agriculture, and entertainment and tourism) and moving here. However, all those people who have lost their job probably don't think cheaper oil is good. Neither does the city of Houston which may be in a recession specifically because of the decline in the price of oil.
Admiral Woofington
Member
Yeah for every "oh look x thing got cheaper this must be great for consumers" consider all of the people losing their jobs, having to sell cars/houses, moving back with family, and searching for jobs for years.
Earthstrike
Member
Nah I understood. It's mostly selection bias. Those that understood didn't respond. Those that didn't did. So you see more comments that didn't get the sarcasm.
paragonpro
Banned
Where i am, mid-jersey. It sits around 2.27
XOMTOR
Member
Not in Canada. When the price of oil drops, the refiners get to widen the 'crack spread' to make up some of their losses with the retail gasoline side of their business. In Canada, when oil goes up, gas goes up. When oil goes down, gas goes up. Consumers here don't catch a break.
Hey, no question is stupid and you asking to get more information to get more informed does not make you sound stupid, if anything it proves otherwise.
So I'll give you some answers in the background of Canada, a non OPEC country that produces oil.
While lower oil prices might mean you as an individual can buy more gas and drive around more, it has a bad effect on the oil industry here and those people that work in that field. The reason gas is cheap is because it's being over produced by OPEC countries where it is cheaper to produce to begin with, and they are flooding the market. It cost much more to produce oil here, so companies start slowing down or stopping production here because the price to produce compared to what they make back for it is not financially viable. This means they need less people to work and then that causes people to lose their jobs.
Canada has a lot of the economy tied to oil industry because our former conservative governments thought that was smart, so when it suffers, our economy falls and our dollar takes a hit. When our dollar is weaker prices for things go up, so any money you were saving from cheaper gas in your car, you're going to be paying that back in things you end up buying to survive.
Oh and people losing their jobs means they can't buy as many things as before so that's how other industries are affected
GameAddict411
Member
Oil is on the way out sooner or later, and Canada dependency on oil is alarming to be frank. The Canadian dollar was more expensive than the US dollar, but now it's significantly cheaper in a span of a few years. I would be surprised if Games start to cost $120 canadian dollars pretty soon.
pr0cs
Member
Has zero to do with the government. If it did then the problems would be magically fixed with the new one.
Or you expect millions of people to be retained and productive in a couple months time.
You realize fucking over something is much easier than fixing it right? The past conservative governments fucked over the whole province by short term short sighted gains that trying to fix that is a whole mess
pr0cs
Member
You realize that you can talk all you want about blaming the government but the fact still remains that you have tons of people in that industry and there is no quick solution to the problem
tearsintherain
Member
California requires specially formulated gas called CARBOB due to state environment regulations. Its completely different from the gas mix sold in every other state, is created in refineries only in state, and is basically held back by the production of the few refineries in state that create it. Two companies (Chevron, Tesoro) control something like 65% of the refineries that make CARBOB now too.
California gas tax is also much higher, around 65 cents a gallon compared to 15-30 cents in most other states.
Who's arguing that there is a quick solution? No one is. It's literally a hard solution that just changing the government will not fix it like that. The reason they are in that problem is specifically because of a shitty government with horrible forward thinking in their policies.
shira
Member
I'm legit scared if we have to vote for a Canadexit.
Saren is Bad
Member
Not sure what this means?
pr0cs
Member
My point is that unless they changed their resolve decades ago the problem would exist still today, no matter what govt was in place.
The entire country benefits when the oil industry is prospering
They're saying that with prices low there will be less fracking as fracking is typically only financially viable if oil is $30 or so.
The NDP government in Alberta won't like this news even though they been working on diversifying the alberta economy since they got elected in 2015.
djSyndrome
Member
Absolutely - leads to losses, layoffs, and the like.
But Americans will just keep buying bigger and thirstier vehicles as long as gas is cheap, and the EPA losing what few teeth it had will suffocate alt-fuel research. It's really the best possible scenario if you don't like the planet!
Saren is Bad
Member
I'd argue fracking is the only viable technique at these prices, assuming of course you're drilling in a good area (i.e. Permian). But yeah I guess drilling as a whole would reign in under lower prices.
Rentahamster
Rodent Whores
Surely, plane ticket prices will go down too, right? <.<
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