i think i made a mistake

when i first started my involvement with oil and gas the old timers always said plan for the bust. its not a question of if but when. could be 2 weeks could be 10 years. iv seen some roller coasters of ups and downs. none had me me as worried as this one. seeing as last crude figure i saw crude at $45 per bbl nd sweet crude trading at $35 a bbl. i do feel things will rebound but when and how long is the question. hoping i will be fine at least for the next year as road projects are normally planned and set a year out. been keeping my eye out for a decent used tri axle hopper bottom as from what i am seeing hopper bottom freight out of Canada (road salt fertilizer ect) seems to still be doing well. I sure would like to avoid going to general otr freight myself.

It sucks you came in right in a down turn. even if you pickup for a bit keep back up plans in the back of your mind and never burn a bridge.

 

As mentioned above, I've been under the impression the oil price drop was aimed at Russia. We're collateral damage.

 

Life is good in gas hauler land...

 

and here i had thought that IN SPITE OF THE FEDERAL GUBMINT,oil prices have been dropping due to private land drilling/fracking. silly me.

 

It's aimed at the USA fracking companies. The Saudi Royal Family actually admitted this. Read an article yesterday, the Saudi King said the American fracking companies must be shut down; sorry Mr. King, you slit your own throat and now it's too late for you.

 

The Saudis are doing what they (and the rest of OPEC) have done in the past. When new forms of energy are being developed....like fracking or shale; they turn the pumps on high and increase output. This drives the price of oil down to the point where it isn't economically viable to pursue the alternates & they stop....like what's happening. Then after companies/countries have mothballed the technologies, OPEC slows production again thereby driving the barrel price back up.

 

personally i think the us should boycott saudi oil. and only refine us crude. it would raise or fuel prices. but keep all domestic oil for ourselves stop trading internationally between our current oil production and reserves we could support our selves let them shoot there own foot.

 

The story I have always heard, and the one I tend to believe, is that the US has begun using less oil and producing more oil causing a glut of oil on the world market. Every single time in the past when OPEC has had a meeting to plan oil production cuts to balance world supply only one country has ever cut production and that is Saudi Arabia. This time the Saudis just said screw it and continued to produce oil at the same level. They will cut their production if Iran, Russia and the others join them but so far everyone is greedy and mad at the Saudis. Russia and Iran have been hurt and the US oil shale is hurting, plus a number of high cost oil wells in place like California but it was not really aimed at Iran or Russia, that was just a happy coincidence for some people. The price could go up as fast as it went down, so enjoy it while you can. It might also ruin the US oil shale business since that is high priced oil to produce unless the US government steps in