Good News on the Oil Front

[gopherpuckfan]

http://www.foxnews.com/story/0,2933,462284,00.html

Oil to Plunge Below $25 Next Year, Merrill Lynch Says

This would be awesome news! Last time I paid under $1 for a gallon of gas was about 10 years ago.

[Shoestring]

I bet it will stay slightly over a buck if it truely goes that low

[mtaylor]

I've never driven with it under $1.00 as I started driving shortly after 9/11.

[cajunguy]

Unfortunately, that isn't necessarily all good news.

The last time the prices dropped like that, the American oil industry nearly went belly up.

Thousands lost their jobs in oil-related industries. I know, I was one of them.

After twenty years working for a major diesel engine distributor (oil rigs, crew boats, generators, air compressors, almost all are powered by diesel engines), many of us had to get out and find a means of supporrting our families.

Ask anyone in south Louisiana about the "oil bust" of the early eighties.

When you see bumper stickers saying "Will the last one to leave town, please turn the lights off", you know there is a problem.

Sure the gas prices will drop. But how many people will have jobs to pay for their lower priced gas?

Yep, in one way it's good news, but looking at it from the other side, not necessarily so.

Just an opinion from someone who's "Been there - done that". (And I didn't even get a t-shirt.)


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[Bob Loblaw]

As someone who lives in Oklahoma, I'm with ya, Cajunguy...The entire time the country has been in this recession, Oklahoma's economy has been pretty well insulated because of the oil industry. If it gets down to $25 a barrell, things could get pretty interesting here. My work will probably be a lot more fun.....

[Caveman]

Last time I paid under $1 for a gallon of gas was about 10 years ago.

Spring 2002 oil was trading for around $35 a barrel for a short time and gas prices were, out my way, at the peak low 93 cents per gal.
Everyone need to remember this though...Cheaper gas = an easier target for higher taxes. Its already started around here by our tax happy Governor who wants to raise it now the prices dropped. It was never considered when prices were through the roof yet it will still be there when it gos back up.

Personally I rather see a stable fuel market and at this day and age prices IMO should be around $2.50 per gallon.

[gopherpuckfan]

They raised our gas tax here in MN by $.08/gal earlier this year...when prices were $3.75/gal! I'm also of the opinion that the "comfort level" for gas in this country is the $2.25-$2.50/gal area.

While I can sympathize with those in the oil industry who would be hurt by very low gas prices, I'd much rather fill my truck for $22 as opposed to $88 (22 gal tank at $1/gal prices)

[2 Blue 4 U]

Even with the declining oil and gasoline prices you have not seen that decline reflected in the prices at the retail stores, such as supermarkets and department stores. They raised prices to cover the increased cost of deliveries and production due to higher energy costs.

I got gas today at $2.20, with the money saved I can put towards heating my home, of course the gas company is crying the blues and wants to hike prices AGAIN!

[Bob Loblaw]

I think consumer goods prices are still high because diesel hasn't dropped as much as gasoline...here, gas is $1.42, but I think I still see diesel at around $3/gallon. Plus, it will take a significant decrease in diesel price over a long stretch of time to affect consumer goods prices...just think about how long gas/diesel were both over $3.50/gallon....

[Xiphos]

$25 a barrel oil and the cheap gas to go with it is the only bail out auto makers need.

[Shoestring]

I would like the gas price to stay about 1.75, (Dont get me wrong, i would like it to be a buck) but that way people keep their jobs and I dont live to stretch my pay check every week to make ends meet because I have to pay out my nose for gas.