Its called greed period.

Hey hopefully you are right. Hopefully this will stimulate the economy. I'm just scratching my head trying to figure out where the thousands that recently lost their jobs that were employed in the oilfield are suddenly going to get jobs outside of the oilfield.

I'm not selfish enough to say everyone should pay $4.00/gallon so I'm better off. I want what is better for everyone as a whole. From what I've seen in the past, when the price of oil is high, everyone is working; whether you are a mechanic, waiter/waitress, carpenter, electrician, etc. When the price of oil drops, many are out of work.

High gas prices doesn't only benefit oilfield workers. People were starting out making $15/hour in North Dakota because the shortage of people looking for jobs. What happens when thousands are looking for jobs? They aren't going to pay those types of wages.

Maybe this time will be different.

What exactly is he wrong about? Oil in Saudi Arabia is much easier/cheaper to produce than the shale oils being produced in the U.S.

I too question the $80/bbl to "make" money, but that's really just my opinion, I haven't seen the expenses involved. I'm betting it just takes a little longer to recoup their investment, but in the longrun they will make a profit. At the same time, would you sell stock at $40/share today, if you knew you could get $80/share for it next year? Is that being greedy? or being smart?

This right here is what alot do no realize. It is not the roughnecks out in the fields that should lose their jobs, how about cutting some of those benefits packages for those top level executives. Their salaries, bonuses and severance packages are enough to employ some people. The top level people are more concerned on protecting THEIR money, then ensuring the lives of the lower echelon of workers. How many times do we see athletes take pay cuts to get other people around them? Not much, but it does happen.

And like others have said, if you are making $200k/year, be frugal with your money, because at any given point in time, it could be taken away. I know with my measley little salary, and $3+ gallon fillups, I had to get rid of my Chevy truck because $90 week fillups were really starting to take a toll on be able to provide for my family. SO this break in gas prices is long over due. I believe that there were more people out of work when oil prices sky rocketed and the economy tanked.......That is just my observation

You are correct that the refining cost are basically the same if oil is $40 or $120. But I will try to explain why jobs are lost when oil is $40. the refining is the last step in oil production, so let's look at how many different jobs there are getting the oil to the refinery: geologist to find it, landman to lease the land, construction company to clear roads and drill site, trucking company to haul drilling rig to site, drilling company to drill well, pipe company for both casing and drill pipe, leasing company for pumps and generators, Fracking company, construction company to build pipeline, service company to complete the well, set pump jack, storage tanks, separators, etc.. companies that sell the equipment, trucking company to haul water and oil. ( This is not a complete list of all companies involved in the drilling process ).
So this is where I'm going with this: if it cost X dollars to produce X barrels of oil you want to sell at a price that covers your cost? When the price does not cover those cost you do not drill, THEREFORE all the jobs listed above are lost!! Then as mentioned above all are affected

I have worked in the oil industry and out. And I for one feel a little bad for guys that are working for their families but I don't feel bad for kids that buy 50k -70k dollar trucks and or spend 30k on a side by side after they rig it out or go to the bar and spend 3k-4k a night. I mean when I fill up my truck and my diesel tank because I am in the cattle business and it cost a few hundred bucks for some diesel. That hurts and even though cattle prices are the best they have ever been I remember spending $416 to fill up my 100 gallon tank a few year ago during hay season and that was once a week. I love gas or diesel being as cheap as it is. It helps out so many people. The oil industry is crazy I know a guy with no education making well over 300k a year at the age of 26. I think he prolly saves his money. But its awful hard for me to feel sorry for the guys that blow all that money before its made.

sorry for all the run on sentences.

I tell you what. Take the money your saving from lower gas prices and give it to someone that got laid off. So you can feel better. Life's about making the right decisions. I was laid off right after buying a house. My dad didn't give me any money but he did say I'll pay you to paint my porch. Two weeks later I went back to my former employer. 5 months after that was called back from layoff.

Here's my 2 cents. Roughnecks do make a decent wage for what they do. If you look at the big picture though, many are traveling hours from the house, staying away from there family more than 6 months per year. It's the life we choose. So the money we make also includes compensation for that. There are missed birthdays, anniversaries, and holidays. There again, it's a personal choice.
As far as the economy, if you lay off 20,000 employees, and the average employee makes 100,000 per year, you are looking 2,000,000,000 per year, that's money that will not go back into the economy. Those 20,000 employees are now going to draw unemployment, that's money that is coming from the federal government, but the government is not going to be making as much, due to the fact there is no taxes being paid on the 2,000,000,000 in lost wages. Guess who picks up the tab for that. But hey, people are saving 300/month at the pump. There has got to be a balance between fair oil prices any price gauging.
As far as companies not making money at 40/bbl, that's true. The oil that is being used right now is mostly foreign oil that is produced at a much cheaper rate due to government regulations, ease of drilling, and simple logistics. The Middle East has flooded the market to drive the price down.
Sorry for the length of this, and thanks for reading

Man the dum## in this forum are unreal! Keep enjoying the low gas and thinking life is good but if you live in texas your life is effected by the oil and gas ind, wait tell the end of year and all you read about is short coming on taxes these are not walmart jobs we are losing once the oil money slows so will Texas,,

Business comes and goes... Economic growth rises and falls for certain states or products over time. A lot of people have been laid off for along time for different reasons. That will never change.

Gas is $1.99 in Knoxville, Tn.....go south 60 miles.....$1.75.....I shop Kroger....with their savings card....I usually save .80- $1 per gallon.....it helps....

Gas price is a steady $1.679 here in Gonzales. I have lived and worked thru many oil booms and busts, and this one is no different from any other. During the boom, people spent money like there was no tomorrow. They built and bought things they didn't need. Oilfield workers driving new pickups, companies buying more equipment. Then the bust hits, all those new pickups sitting on banks parking lots, all those drilling rigs laid down, companies filing bankruptcy. If they would have just been reasonable in spending, the may have been able to survive till the recovery. And there will be a recovery.

I don't truly understand oil prices and gas prices. I smile when gas is cheaper and cringe when it goes up. That said, I bought the Jeep I have when gas was $3.59 a gallon "because it gets 17+mpg and is 4wd". I also bought my wife a Lexus Hybrid,"because gas was so expensive". Now it's not uncommon to use $25-$30 a week in gas for my jeep to get to work and back and go fishing everyday. Her car went from $21 a week in fuel to $10 a week in fuel. She drives A LOT. I was preparing for much higher fuel prices and this recent savings has been nice. I don't think it's gonna last. Haha. But the thing that most people do not do nowadays is PLAN! I plan for the bad times and that allows me to enjoy life. I do not go crazy when times are great. I stockpile money. Lol. I resist the temptation to buy a HellCat...and a BassCat. I make due with a crappy old Nitro Z6.

My mom, on the other hand, has her land in SDakota leased to a oil research company and she went from getting MAD MONEY to AMAZING MONEY. lol. But, she's doesn't spend it crazily. She invests it and says it will not last for ever (the oil) and when the Bakken dries up, it's game over. So she just takes the money and invests. The land, BTW, is worth 20x more money per acre today than it was 10yrs ago. And not due to oil. Because LAND is a true finite resource. Fuel isn't. There is alternatives. I think it's funny how people talk about "Texas oil". It doesn't come close to the amount of oil in the Dakotas and southern canada.

Oh well. I'm in the camp of "it is what it is".

I would bet that oil companies still show massive profits, Even at this oil price... what does that tell you???

It tells me that when the price went down, they cut their work force so they could keep their profits up