If you're not from America recently gas prices have seen an almost all time low actually lowest in 20 years. With 8 states predicted for gas to be under $2 a gallon what are the affects? And what caused this to happen is it good or bad? I was just wondering what the community thought about this and I'll explain a few things with recent events US has decided to drill for it's own Gas so it doesn't need to buy from the Middle East great right... Or maybe not Because of this the Middle East chain of oil companies got a bit upset and since they are pretty much richer then filthy rich they had two options reduce production of gas so oil prices go up or Maintain production or increase and cause it to rude high supply = low price so a They decided to maintains it's normal production as mentioned earlier they are VERY RICH and can afford to lose money by selling their product so cheap where as the New oil companies in America can't their plan is that they will keep dropping the price of oils Until it becomes to much of a lose for our companies to keep running and in turn shutting down most of the oil rigs and refineries in the United States how is this bad? A lot of Americans will lose their jobs here's a good example - My cousin has $20M of a bank invested into an oil refinery who bought very low grade oil and heated up so many times to where it turned into high quality selling it for large profits where $70 was the magic number anything above that meant profit as of 8 says ago the barrel of oil was at $80 3 days ago it was $66 meaning the company is now losing money by running so it will probably either close down or a lot of workers will get fired either way bad situation - So is the drop is oil prices good or bad? The plus to this is after all cheaper oil and how can we help the situation I'm missing something but I can't put my finger on it
That was a really extensive wall of text, but I generally understand your point. unfortunately I do not trust in myself to make an accurate opinionated statement.
Who has time to learn how to use BB codes however I did notice I miss spelled a few words hopefully it doesn't screw it up too much
Gas prices fluctuating is nothing new. Oil companies do it seasonally to make gas prices in the summer not seem as bad. For instance- gas prices around here last summer nearly reached $4 a gallon. For my gas killing (14MPG) jeep I was furious. All the things I like to do in the summer require driving far distances to lakes, rivers, etc for some good ol' country fun. Most people in the US travel a lot. Be it visiting family, vacationing, etc. so the oil companies make a crap load due to all the traveling. In the winter, people travel significantly less. I probably use 1/4 (maybe less) gas in the winter. So it isn't a big deal that prices are down since I get gas less often. All of the traveling outrageous prices in the summer yields more than enough profit to run low prices in the winter time when people aren't refueling as often. Therefore no catastrophic company collapses happen. It's just simple marketing schemes by people far more wealthy and greedy than the average joe. Who like you, doesn't understand what is going on and thinks oil companies are losing money
Where is ATA's explanation for crappy server service now since they get all that money from selling oil.
Your cousin has lost nothing unless selling stocks. On paper it looks like a loss. As for PUP its all about supply n demand..basic economics. When stock piled oil is unsold prices drop to free up capital. Refineries slow production or increase due to marketplace forces. Political unrest n wars destabilize confidence n spike oil prices for just a few examples.
I vote the US raises gas pump prices in line with other G7 nations. Who wants big oil not gouging all ppl equally in all countries.
The US is about to surpass Saudi Arabia as the worlds top oil producer. You can say a lot about that, but other nations are feeling the crunch.
You could have been more clearly in your first sentence o.o i'm not from America and gas prices arent all time low