While we all freak out over Corona Virus

One of the objectives is to put US producers out of business dropping prices cheaper than we can produce it
 
Shawn said:
One of the objectives is to put US producers out of business dropping prices cheaper than we can produce it
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That, and the Saudis want to hit the Soviet producers as well.
 
RyanShort1 said:
The extra supply and loss of demand with the airlines is gonna hit the oil folks pretty hard, I think.
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It's already starting. Just talked to a buddy of mine who is a production foreman for a large independent in Texas. He told me he had to layoff his crew last week due to production cuts. I've been noticing less and less oilfield traffic here in my neck of the woods. In fact, I've been noticing less traffic overall. Thankfully this time around I'm not in the oil patch. I'm in the Ag industry now where people and cows have to eat. Unless people stop buying beef, milk and cheese, I'm pretty safe job wise.
 
Yeah, the oil patch is going to take it in the shorts for a while. Long term, that's going to be a bigger drag on the economy than is Covid-19.
 
Very true. Let it crash. Oil producers, including Saudi Arabia don't want low prices forever. I think there will be excellent opportunities in the future to get into oil again.

Check out GUSH.
(Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares)
It is WAY beat down right now. 52 week high was $138.20. Currently sitting at $0.63 a share.
 
I'm out in the Permian weekly. It's going to hurt, and timed with this it's gonna be interesting to see what the ripple effects are. I'd like to see some effort to keep foreign countries from buying up the rubble.
 
In recent years, the US has finally opened up the resources, and has the capability to be energy independent. Maybe it's time to rethink some of this global economy situation.

Basic economics says that for an economy to be healthy it needs to dig and refine it's raw materials, manufacturer it's goods, and then sell and service the goods. Unfortunately, we have allowed ourselves to become a service economy. Now we get to see what happens when a critical piece of the wheel breaks. Put another group of liberals in charge......sheesh.

It's time for the US to buck up, get it together, and tell the rest of the world to go pound sand. Toilet paper shortages....... have we really become this stupid?
 
Art Rose said:
In recent years, the US has finally opened up the resources, and has the capability to be energy independent. Maybe it's time to rethink some of this global economy situation.

Basic economics says that for an economy to be healthy it needs to dig and refine it's raw materials, manufacturer it's goods, and then sell and service the goods. Unfortunately, we have allowed ourselves to become a service economy. Now we get to see what happens when a critical piece of the wheel breaks. Put another group of liberals in charge......sheesh.

It's time for the US to buck up, get it together, and tell the rest of the world to go pound sand. Toilet paper shortages....... have we really become this stupid?
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Stupider than that, even... Our drugs are sourced directly and indirectly through China.

Wake up folks .. the Walmart mentality of cheapest is best... Ain't gonna work. Hasn't worked. And puts us at risk.

fly to the scene of the incident, or be recovered at the scene of the tragedy
 
They tried this in 2014 and it hurt for a little but came back with a vengeance. The reason why oil isn't $150 a barrel is North American production. OPEC wants control, nothing more.
 
FormerHangie said:
Yeah, the oil patch is going to take it in the shorts for a while. Long term, that's going to be a bigger drag on the economy than is Covid-19.
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Low oil prices aren't a drag on the economy (other than the oil producing States). The airline industry and a lot of other sectors across the broader economic will recover faster with lower energy input costs.
 
Bad for aerospace manufacturing industry however... the new planes are hugely more fuel efficient. If gas prices tank, airlines will delay purchasing new ones. This fact + the C-virus, most airlines will probably push their options to buy new airplanes out for a while... On top of when the 700 Max's are deemed healthy and placed back into service and out of parking lots -- hopefully soon for Boeing's sake.
My hat is off to the folks who run companies, how the hell does one plan lately ???
 
AGLyme said:
...My hat is off to the folks who run companies, how the hell does one plan lately ???
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Someone at the Fed mentioned there’s no reason to forecast anything right now since there’s no way it’s reliable.

We’ve got a ton of business continuation plans on the books that we’re executing right now mainly because executives want to be perceived as taking action.

Unfortunately some of the execution is dependency based...D must happen so that J actually works. That’s the part we are trying to figure out right now.
 
Keeping peoples’ spirits up and keeping them busy is 90% of it...
 
AGLyme said:
Bad for aerospace manufacturing industry however... the new planes are hugely more fuel efficient. If gas prices tank, airlines will delay purchasing new ones. This fact + the C-virus, most airlines will probably push their options to buy new airplanes out for a while... On top of when the 700 Max's are deemed healthy and placed back into service and out of parking lots -- hopefully soon for Boeing's sake.
My hat is off to the folks who run companies, how the hell does one plan lately ???
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Having just been through our own planning for response to this virus thing, it's no picnic. There's always some level of (hopefully educated) guesswork.
 
Oil just hit a new low. Currently sitting at $26.81 a barrel.
 
AGLyme said:
My hat is off to the folks who run companies, how the hell does one plan lately ???
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Its been one day at a time. I've been spending a lot of my day monitoring news and press conferences waiting to hear what the latest ban or shut down will entail.
 
Just filled up the car last night and fuel was $2.14/ga. I wonder if we'll see it go below $2/gallon?
 
Paid 1.699 last night at Costco, add in the 4% cash back on gas for using their Visa card and it was 1.631.
 
Sinistar said:
Just filled up the car last night and fuel was $2.14/ga. I wonder if we'll see it go below $2/gallon?
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We’ve been below $2 for a little while in OK. Part of that is lower fuel taxes though. I think I paid $1.70/gal first of the week, probably $1.65 by now.
 
I paid $1.65 yesterday.
 
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