Today I Want This....

Gravy

Ant Anstead of Dirtbikes
Supporting Member
ooooooosh

http://www.ksl.com/index.php?nid=218&ad=38160760&cat=236&lpid=1&search=&ad_cid=4
983706-1452983274-727262.jpg
 

sixstringsteve

Well-Known Member
Location
UT
one day I'll get back into trials riding. that was a fun part of my life. I wish I had spent more time to get good at it.
 

UNSTUCK

But stuck more often.
As much as people hate it, low oil prices are not good for the overall economy. $75 to $90 is good.

I hear this put out there every once in awhile, but have never heard anyone explain the reasoning behind it. In my little mind I know I have $X to spend on say a road trip. Most costs are about the same each time, except for fuel. Fuel cost always become the determining factor on whether or not I take the trip. So this last Christmas we dumped about $2k into the economy by taking a road trip to PHX because gas was cheapish. Had gas been much more we would not have gone, which would have kept $2K in my bank account and not put into the economy. So in my case cheap fuel prices helped the economy.

But I think in reality 99% of people spend every dime they earn every week/month. All that money gets dumped in the economy one way or another. Maybe now not as much of it goes to the oil companies which have gotten used to huge profits lately. So when gas prices fall they cut back so they can continue to enjoy the profits they are used to. And now the economy is bad. Is the economy effected that much by the oil companies' cut backs?
 

sawtooth4x4

Totally Awesome
just think of how many business support oil:

Roustabout services
Oil Drilling Rigs
Engineering Companies
Fracking
Piping Design
Equipment Manufactures
Trucking
Trucks
Heavy Equipment
Tires
Tools
Pipelines
Pipe

ETC

Its not as simple as they drill a hole and get oil out of the ground and it magically turns to gasoline and diesel. There is a lot of people and companies that make it possible to have what we have. When the price goes down millions of people are at risk. There isn't a lot of profit in just making gasoline
 

UNSTUCK

But stuck more often.
I could say the same about the milk industry. Just think how many businesses support milk? You don't hear of people saying the end of the world is near, based on milk prices.

I'm not trying to start an argument or anything just noting my observations. I am pretty familiar with how the oil industry works. I have been on the construction end of it and have felt the pains of low prices. I get frustrated of the layoffs, but I also understand that we choose to get into the industry and hence choose to accept what comes of it.
 

Cody

Random Quote Generator
Supporting Member
Location
East Stabbington
I'd like oil back up to $75-$80 so I had a lot of work again. I know, haters gonna hate. LOL:greg:

Maybe start investing in oil futures?

As for the overall health of the economy based upon oil prices, that's an interesting dynamic. I don't know if there is an answer to it, but I think I would contend that there are a LOT of industries that benefit from lower fuel prices, and the increased profitability would trickle down a long ways in the economy and create more jobs and spending. I know in my industry alone, shipping prices are more expensive when fuel prices are more expensive, and so my prices are more expensive and my margins are lower as a result.....think of travel/tourism industries and manufacturing etc.
 
Last edited:

Houndoc

Registered User
Location
Grantsville
The only argument I have heard as to why higher oil prices are good has absolutely nothing to do with its effect on the broader economy (the other jobs/industries involved as noted above) but that it reflects the broader economy. Meaning strong economic growth means increased demand for oil, which drives up the prices.
 

anderson750

I'm working on it Rose
Location
Price, Utah
The only argument I have heard as to why higher oil prices are good has absolutely nothing to do with its effect on the broader economy (the other jobs/industries involved as noted above) but that it reflects the broader economy. Meaning strong economic growth means increased demand for oil, which drives up the prices.
The bigger picture beyond that, is that the global demand is down, not just our domestic demand.
 
Top