Friday, February 6, 2015
A friend of mine filled up in Missouri City TX using his Kroger fuel points.
I don't mind paying $2.00 and up per gallon if it helps keep me employed. I know folks are loving these low gas prices, but it's hurting American working families. The Shale boom hit, way too many people got hired, and new drilling companies popped up everywhere overnight. OPEC wanted to get rid of them all by doing what they did with holding out production. There is also the theory of the US being punished by the House of Saud for the continuation of US talks with Iran about their nuclear capabilities. I have had several customers tell me that they have cut back on ordering for their rigs. It shows in their Purchase Orders too. We used to order enough mud gates and butterfly valves for 10 rigs at a time. Now it's been scaled back to 3 at a time. That's quite a big difference...
I do know this much - Oil production naturally declines and oil companies need to invest in new production to meet ever growing consumption demand, but they don't invest when their cash flows decline as well.