Price of Gas!

Charles Graff

Moderator Emeritus
My son is in the "Oil bidness" in Houston. He tells me that 2020 will be a very bad year for folks like him, so he will hunker down and see what 2021 brings. I do note that the prices have dropped below $2.00 here, but the China Virus has us all cooped up and can't go much of anywhere.
 

Hawk

North Central Texas
My brother is in the oil business also. Theyre kind of panicking right now, because the bottom is nowhere in sight. As you said they're just hunkering down and trying to ride it out, and hope they don't go out of business. I think part of the reason is they've been riding pretty high the last few years, and it's really hard to downsize after ramping up production.
 

Hawk

North Central Texas
It's the double whammy right now. Saudis and the Russians are contributing , and the covid-19 has demand way down, like 60 to 70% down. They could probably ride out one or the other, but both at the same time is a challenge.
 

Charles Graff

Moderator Emeritus
My Son, for lack of a better term is an "oil field flipper". He buys oil property that is under developed and does development work, and then sells the property for a profit and does it all over again. He made really big buck on his last venture and was looking for his next venture when the oil market tanked. He was not holding anything, so he will lose nothing. He is very conservative and does nor blow his money when it comes his way. He understands that the oil business has boom and bust cycles and he is not going to go bust, because he probably still has his allowance from Jr. High School which he never spent. He has the resources to wait out whatever comes. He is 43 years old and the most amazing man I have ever known. He did not get it from me and sure as hell did not get it from his mother, she is a ditz.
 
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popper

Well-Known Member
Couple years ago along 290 you saw fields of oil equip. sitting. Somebody knew something in Feb this yr. as I talked to several oil execs that get laid off as companies were packing it in.
 

Charles Graff

Moderator Emeritus
Couple years ago along 290 you saw fields of oil equip. sitting. Somebody knew something in Feb this yr. as I talked to several oil execs that get laid off as companies were packing it in.
Working for yourself is the only way to do it in the "all bidness'. When you work for other, you are at the mercy of world politics and volatile oil prices. After graduating with several degrees in Petroleum Geology, my son went to work for British Petroleum for a dozen years. He worked in every aspect of the business from exploration to drilling to production to marketing. He then went on his own as an "Independent Oil Man", which proved to be a very wise move. He always takes the long view on everything.
 

fiver

Well-Known Member
problem with the oil field is it is very slow to ramp up, but can shut down in the blink of an eye.
like right in the middle of a job blink of an eye.
the exec's that run the show are also super knee jerk reactionary to any of the smallest of situations.
 
F

freebullet

Guest
Sounds about like the water damage restoration industry. Good money to make but usually all or nothing kinda deal.

We consume oil. Put 7 gal in the tractor today & need to swap the front axle oil at 1.5 gal.
I'm going to wined up making a drip oil burner for smelting or maybe double as an outdoor pump in supplemental heater to use up the old stuff. Learning more about design of small boiler type systems.
 

Rick

Moderator
Staff member
Haven't bought gas in over a week but it was $2 then. I just checked GasBuddy and right now at an Exxon station down in little Rock it's $1.19. I would have bet good money that I would never see gas at that price again.
 

Rick

Moderator
Staff member
GasBuddy says that this morning the same station I filled up at a week ago for $2 is now $1.84.
 

fiver

Well-Known Member
we dropped a dime overnight.
you know the night after I filled the truck with gas.
still 2.25 here and 2.35 down in the valley [can't figure that one out we are generally at least 10 cents more, and usually close to 15 or 20.