Fuel up/down again
- Thread starter [TW]Fox
- Start date
I guess you aren't aware of how much is affected by the oil industry then. Sure, transportation costs are cheaper, but then what about the overall reduction in money in the economy? Local businesses, sparkles, joiners, builders, engineers, architects, car dealerships, banks, insurances. I could go on. All these industries have some link to the industry whether you like it or not.
Soldato
Expand?
Youve obviously not been keeping on top of your Amex offers
Its a standard card offer which has been running for a while. Sadly it expires after 31/1 
While I agree falling prices are not universally a good thing, it is worth bearing in mind that pensions are intended as a long-term investment vehicle. Things like the 2010 oil spill impacted their share price far more than recent falls in wholesale prices, and you'd hope that a pension would have a balanced portfolio in any case that would reap the benefits felt by other companies, even if the oil stocks performed badly over the short-medium term.
Soldato
You clearly don't understand the industry and simply think that lower fuel prices benefit you.
There's a price war, the middle east are literally pricing out the rest of the world, going to be fun when they are the only people with oil, no?
Soldato
Do you honestly think the prices of everything in the shops went up because making bread etc got harder? No because it cost more to ship it to the shops. That's just one of many examples where it benefits all. Cheaper energy is a good thing. People have obviously got used to it and think it's normal or something.
Soldato
These oil prices aren't normal though, the US doesn't bother pulling oil out the ground until it hits $60 a barrel, anything less isn't worth it, hence it being a problem for the world. It certainly isn't worth Scotland (North Sea) pulling oil at that price.
Yes it equates to lower fuel prices, lower food and goods prices but think long term.
*note I probably wouldn't be saying this if I still lived in the UK and had to pay UK gas prices
Yes it equates to lower fuel prices, lower food and goods prices but think long term.
*note I probably wouldn't be saying this if I still lived in the UK and had to pay UK gas prices
Exactly. Oil prices this low is killing shale gas companies in the US. Once they all go under then oil price can go back up again and the Saudis can be back where they like (in control of the work oil market)
Obviously that's only one view of the situation but it's not impossible for it to be true. Also hurting Russia is another reason to keep production up
Caporegime
Things are still moving project wise, be interesting to see how the price plays out through the year.
Ability to pay a dividend is more important than share price.
Soldato
These oil prices aren't normal though, the US doesn't bother pulling oil out the ground until it hits $60 a barrel, anything less isn't worth it, hence it being a problem for the world. It certainly isn't worth Scotland (North Sea) pulling oil at that price.
Yes it equates to lower fuel prices, lower food and goods prices but think long term.
*note I probably wouldn't be saying this if I still lived in the UK and had to pay UK gas prices
isnt "normal"? its back down to normal now... the higher price wasn't normal.
Associate
isnt "normal"? its back down to normal now... the higher price wasn't normal.
The currently "low" prices aren't normal either. Not compared to other countries in the world.
Soldato
I'm not sure I fully understand who "suffers"?
Government are still making money via duty, albeit a bit less via tax. But this is probably outweighed by the knock on effect of cheaper fuel giving people more money to spend elsewhere, or even be willing to drive more, thus spending the same amount on fuel anyway.
Oil companies have been pumping £bn's worth of profit year on year.
http://money.cnn.com/quote/quote.html?symb=OGZPY - $35.6B profit 2012
http://www.cnbc.com/id/102137534#. - $1.024 billion profit
The only panic is via the media.
Government are still making money via duty, albeit a bit less via tax. But this is probably outweighed by the knock on effect of cheaper fuel giving people more money to spend elsewhere, or even be willing to drive more, thus spending the same amount on fuel anyway.
Oil companies have been pumping £bn's worth of profit year on year.
http://money.cnn.com/quote/quote.html?symb=OGZPY - $35.6B profit 2012
http://www.cnbc.com/id/102137534#. - $1.024 billion profit
The only panic is via the media.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
But is also reflected in share price.
Caporegime
Existing operations become unsustainable to run, so job losses.
It becomes harder to develop, explore or implement new drilling campaigns, this is due to production and exploration costs, so no job creation and job losses in the massive UK based supply chain.
Ultimately lack of investment and shutting down of existing unprofitable operations will only see the oil price head one way.
Lots of people can and will 'suffer' from this.
Soldato
Only people that suffer are the ones in the oil industry. No one else will. Its funny how people have got so used to $80+ per barrel that they are now saying its "bad" its gone back to the relatively normal sub $50.
Don
Ultimately a period of a couple of years of reduced investment in new field development results in production capacity being reduced in the medium term, which means there will be another price spike in 2-3years time.
Soldato
Because $80 IS normal.. You simply don't understand the situation and simply see 'cheaper fuel, cheaper food'
When the Saudis own and run all the oil in the world... then come back and say this.