What happens when you lose 30-40% of your consumers?

Covid is currently doing that.

I do not believe it will be as high as 15%
I do believe it will help, though.

I agree with Superduty that this is going to hurt a lot of people and it will affect a lot of people indirectly. However, there are a lot of people that are going to find a benefit from this in the short term.

I'm a deep water Oil & Gas man, thanks to Covid-19 and this oil war my company is taking a hit. Scary times we're living in.

DC will be along soon to scold you for "worshipping the almighty dollar". lol

Man, -$37 at the close? the S is about to Hit The Fan.

I have been busier than I have ever been and I cover the Permian. Lots of folks selling assets right now. Signed 2 complete dispersals last week. Nice gear too.

Let's see...

1. Texas will lose 7% of it's state taxes - who do you think will end up paying for that if oil prices don't recover quickly?
2. Energy sector employs about 7% of the workforce in the US - probably a little higher in Texas - add this on top of all the businesses that are currently closed
3. Oil and Gas activity keeps A LOT of small little rural towns running - what you think is going to happen to all those little mom and pop shops or billy wayne's sister's little boutique down on the square once the oilfield jobs are gone and your baby momma can't go spend your check cause you ain't got no job?
4. Eventually this will have an inverse effect - prices will be through the roof - why? Because the oil and gas economy collapsed and new drills went to zero. Now we've burned through whats in storage and it takes time to lease, permit, schedule, etc new drills. So we then will have a SHORTAGE of oil in the US...well - we can't stand that here - so who do we buy from? The Saudis...giving them more power - something we had taken away until this stupid virus killed domestic and global demand.
5. If oil stays negative you're going to see refineries go offline. No one is going to PAY to have oil refined into fuel. Period. Not if demand is what it is now. Then we'll have a gas shortage. That will be fun.

Maybe I'm doom and gloom - but it's really not a great outlook with energy prices so low.

How is a city in north central Texas dependent on oil income? I really don’t see the connection and every time I ask, I never get a qualified answer. I’ve asked many times and many times the response is “it does, you just don’t realize it”.
If i don’t realize it affects me then is it really affecting me? I’m really wanting to get an honest, clear answer;
How does low oil prices affect a firefighter/paramedic living in north central Texas?



(I feel for the oil and gas guys, I really do. Feast or famine is the name of that game and I couldn’t live my life like that but appreciate the ones who do. I have some in my family. They all say this affects me but have never once given me an answer as to how.)

It might in an unnoticeable way, maybe 4 years from now when things need to get ramped up. In 2008 and 2014....didn't phase me one bit.

The problem is that companies are going to shut their doors, sell their equipment at a huge loss, and people who put the money up for exploration and production will take a nasty hit.. that means even if oil rebounded 1st Q next year, Texas (US) production won't be anywhere near where it was before CV19. $50-60 oil would quickly turn into $120 oil once demand ramps up and our production capability is wiped out. About 26% of Texas GDP ($250 billion or so) is energy based. It will leave a pretty nasty skid mark down our backs, no matter what industry you are in.

Russia can live off of around $10 a barrel at last count, just for reference.

sure won't affect you when you're stupid

That wasn't very nice.

It’s a wasted debate SuperD. Just quit while you are ahead. Low oil prices is the unbiblical Armageddon.
Foolishness after effort to explain the reality of the economics.

Wow, just because someone is asking a question to educate themselves is not a sign of being stupid, it is actually a very good trait in a person. You cannot learn without asking questions.

You are out of line.

Read my post above this one.

Also read your first sentence in YOUR signature line.

Well not sure which post your referencing.

Am I being negative? Ha. Sorry if that perception, it’s said in jest!

I hate that thing.

Most are too young to remember lines that were two blocks long to get your 10 gallons of gas. Plus, you could only get gas according to your plate ending in an odd or even number. I've seen west Texas where every other house on a street was for sale. Yes it can and does affect everyone when the oil and gas industry loses equilibrium and control. It's not pleasant when the Saudis control your life.

Far as I can tell Superduty and Sniper270 are generally speaking the same language so yall may wanna pool your resources cause it will likely be a battle with the rest on here.

How soon we forget.

I remember that gas rationing crap.

And then this genius chimes in....

Yep she didn’t delete that fast enough.