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Oil prices jolted as falling rigs wrong-foot bears: Kemp

John Kemp is a Reuters market analyst. The views expressed are his own

LONDON, Feb 2 – Oil prices surged 8 percent on Friday as the market digested news another 94 rigs previously drilling for oil in the United States had been idled over the previous week.

It was the largest number of rigs de-activated in a single week since at least 1987 and triggered the biggest one-day percentage increase in Brent prices since 2009.

Yet there was nothing remotely surprising about either the continued fall in the rig count – or the volatile market reaction.

The number of rigs drilling for oil has now fallen 24 percent from 1,609 to just 1,223 since early October, according to oilfield services company Baker Hughes.

 

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But large declines had been reported in each of the previous seven weeks. Several prominent forecasters have predicted the oil-directed rig count will fall below 1,000 by the end of the first quarter.

Continental Resources, one of the largest drillers in North Dakota’s Bakken shale, promised late last year it would cut the number of rigs it employs by 30 percent by the end of the first quarter and by an average of 40 percent in 2015.

If those cuts were mirrored across the entire shale industry, which is a reasonable assumption, the rig count would fall below 1,100 by the end of March and average just 950 in 2015 as a whole.

REAR-VIEW MIRROR

Many market participants have ignored the falling rig count to focus on continued production increases in the short term as a reason why oil prices will fall further.

For these bearish investors, the more relevant statistic is the continued rise in production, which hit a new high of 9.213 million barrels per day in the week ending Jan. 23, according to the latest edition of the Energy Information Administration’s (EIA) Weekly Petroleum Status Report.

Goldman Sachs President Gary Cohn said in an interview with CNBC last week oil prices could go as low as $30 per barrel. Cohn’s bearishness is typical of many oil analysts and hedge funds.

The problem with this view is that it is inherently backward-looking. Current production is a lagging indicator – unlike rig counts which are a leading indicator. Focusing on current output numbers rather than rig counts is a bit like driving using the rear-view mirror to navigate the road ahead.

In practice, no one knows how much oil is being produced in the United States at the moment. Production data is collected by the states from reports filed by well operators, but there is normally a lag of several months while the reports come in, and only then are they compiled and shared with federal statisticians.

North Dakota, for example, has provisional production data for November 2014 based on returns from some but not all wells, and it is likely to be substantially revised as the last records are filed. Provisional production data for December will not be published until the middle of February and January’s numbers will not be available until mid-March.

Production data in the Weekly Petroleum Status Report are therefore estimates. Extreme care should be taken in basing an argument upon them. More accurate data based on state records is contained in the EIA’s monthly publications, but the most recent data is for November, before most of the decline in drilling.

Rig counts, on the other hand, provide some information (albeit imperfect) on what will happen to production in the months ahead.

Based on the rig counts, it is possible to argue about how much production will slow and when. But the idling of almost a quarter of all the oil-drilling rigs in the country in less than four months must have some negative impact on output in future.

FORK IN THE ROAD

In the meantime, investors are increasingly divided over the direction of crude oil prices.

In the week to Jan. 27, hedge funds and other money managers boosted their bullish bets on WTI-linked oil prices to the equivalent of 373 million barrels, the highest since July 2014.

But other hedge funds raised their bearish bets on WTI to almost 130 million barrels, the highest since November 2010, according to records published by the U.S. Commodity Futures Trading Commission.

 

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The existence of these large short positions, when oil prices have already fallen by more than half since the middle of 2014, leaves the market very volatile in the event of unexpected bullish news, such as a larger than anticipated fall in the weekly rig count reported late on Friday.

Oil prices are unlikely to rebound to $100 any time soon, a point which has been made by Saudi Oil Minister Ali al-Naimi. But prices must recover to the level needed to sustain enough drilling to keep shale production roughly constant in the face of rapid declines on existing wells.

No one knows for certain exactly what oil price is needed to sustain replacement drilling in the major U.S. shale plays but it is almost certainly significantly above current levels.

North Dakota’s Department of Mineral Resources (DMR) has estimated the state’s producers need a wellhead price of around $55-65 per barrel to sustain current output of 1.2 million barrels per day. Current wellhead prices are just $40 per barrel.

Other experts have their own predictions for sustaining price levels — but almost all of them are above current prices.

Just as oil prices above $100 throughout much of 2012-2014 were unsustainably high, current prices below $60 are unsustainably low.

Prices could remain unsustainably low for some time, but the rapid decline in the rig count, coupled with signs of growing demand, means that a modest rebound is likely sooner rather than later.

It is possible to construct a case for remaining bearish, even with oil prices at or below $50, but the balance of risk and reward is unfavorable.

There are more reasons to think prices might rise modestly to reach $60 or even $65 over the course of the year than expect them to hit $40 or $30.

(Editing by Susan Thomas) Copyright (2015) Thomson Reuters. Click for restrictions

This article was from Reuters and was legally licensed through the NewsCred publisher network.

213 comments

  1. Keep drilling, if the government allows the price of fuel to go back up. I hope the American people take them out of office.

    • The American people actually do something….lmfao that’s cute

    • The U.S. government doesn’t control the market value of oil. OPEC does since they control 80% of the worlds reserves. Gives them the power to flood the market, drive down prices and weed out competition like they do and have done since the 60’s

    • The price isn’t raising because we havent drilled or can’t produce the oil. Its raising because the wells and supply we have isn’t being produced because the price is too low for oil companies to make money. Complained and blame politics all you want its not there fault. This is a result of greed and capitalism plane and simple.

  2. Rig 566 is getting laid down after the next pad . Rig 561 and 559 just got laid down .

    • I think we’ve got one or two more wells to cement for the 566 then they’re being stacked. Conoco is apparently cutting down to 6 rigs soon… they’ve already stacked or are going to stack 5…

  3. They’ve done this before and OPEC is a master of it. It’s The Law of Supply and Demand. Generate an oil “crisis” by reducing production until it’s scarce and then it becomes more valuable and prices sky-rocket. You make more $$$ in the long run, produce less and extend your profitability.

  4. Put people to work and put cheap gas in our vehicles and this country will be brought back to life.

    • Well u have cheap gas but people are getting laid off ur not gonna get both

    • Because people in America aren’t willing to work for less. There’s no damn reason anyone in the oil field should be pulling down 6 firgures

    • ^^ yes..alot of bloating and over paid workers

    • Why would anyone work for nothing and be away from their family’s for months on end? The “workers” in the field are not overpaid.

    • How so? When did you work there?

    • I deal with them every day at my job. HIGHLY uneducated workers, and I have friends in the field. I have previous co workers that couldn’t handle a retail job getting $60,000+….I’m not speaking of the higher ups or supervisors. Just (mostly) bottom pole workers

    • Yes the workers should get paid…it’s the oil companies that don’t want to pay for the work to be done unless they are making as much as they can on a barrel and if they shut it down the supply gets smaller price goes up…has nothing to do with what the workers are paid…when I said put people to work…I meant pay them too!

    • So why should they be paid less because they are uneducated but doing a job that not many people wanna do? If their job requires no education then why don’t uneducated fast food workers do the job? What is the right pay for people working and away from their families for long periods of time?

    • Michael Benoit those uneducated people make this world go round and round as for most of us we weren’t spoon fed we worked for what we have

    • It’s not so much about being educated or not , it’s about the ridiculous things many are paid for , and the amount of $ paid to do it ,,, then refuse to do it when the getting is not so good … Again ,not all , but enough to make it look like all.

    • I am only home 7 days a month. I am severely underpaid in the grand scheme of things.

      You may go perform unnatural carnal acts with a cactus.

    • Chris Malone this dude michael probably works at a bucees or something

    • Michael Benoit…I’m a former navy nuclear reactor Operator. …try going through nuclear power school and get a higher GPA than 3.5 then call me uneducated alright

    • Salutes and much respect Tony Diaz. Glad you’re part of the patch now.

    • Its actually funny how many ignorant people talk down on the patch and have no idea how the gas and oil industry works on the global level. Same people that probably couldn’t handle half a hitch and yet still question oilfield pay

    • Michael…I’d love to see you run 21,000 feet of casing in the ground for two days with only a few 30 minute breaks for circulation and then come talk to me about how much I was getting paid. I’d very much appreciate the conversation on the matter

    • We make 70-80k and more a year because even at 15/hr + a split ticket bonus and per diem, 100 hour workweeks add up to a decent amount of change.

      How about YOU assemble gun strings and setting tools with shaped charges, RDX cord and detonators, igniters and power charges day in and day out for perforating and tell me I shouldn’t get paid well for having to incur the risk of dealing with explosives? idiot!

    • There is a lot of sacrifice for mean that work in the oil field. My husband works 80 hours a week…he has to miss birthdays. ..holidays…works in the snow…works in the rain…works in the heat…and for the record I am highly educated and do not feel he deserves any less than I do.

    • My hubby works 80+ hours a week, he deserves more pay then he getting, he is away from his kids and me for extended periods of time, it’s not fair.

    • I don’t have a issue with what the labors make the issue I have is the muniplating the market, ( if we don’t get what we want we’ll shut it down) what if farmers did this ? You’d go hungry? Groceries would be just like gas? These companies made record profits but can’t take a slump in price without trying to hike the price, Greed, straight Greed, it what’s wrong with America, u think that’s a fair playing field? What a joke

    • I have a question for anyone that doesn’t work the oilfield or military. Would you do a job that you are required to be the one to shut in a well when all hell is breaking loose around you for your $8 an hour? I chose this job because of the thrill, and the pay. Do the math. At $18 an hr work 12 hr days 7 days a week what would the annual salary be?

    • These roughnecks work 84 hours a week, rain sleet snow or hail, muddy,greasy,oily, in possibly dangerous conditions , away from their families 50% of the year, missing birthdays,holidays , anniversaries ,first steps , first days of school, they don’t get days off because “I feel bad”. They have to deal with “daddy I miss you” and sometimes wives that can’t handle being an oilfield wife so tell me why they don’t deserve the money they make

    • Let’s see you people spend 300 plus days a year alone in the middle of nowhere bot seeing you’re children. Then we can talk I earn my money on long days and nights of no sleep while you’re in you’re bed at night notching about the cost of fuel

    • If they didn’t deserve the money they make, why would employers pay it? If people could do it as fast, safe, and for less, they would. As far as being undereducated, the jobs require skills they don’t teach in college, but they do require skills.

    • The general laborer in the oilfield prob only makes $16-$20/hr… They just put in the hours most people won’t. Overtime is where they make their money. Before i was put on salary and was in the field all day, every day an 80 hour week was a blessing because most were 98-110 hours a week! Also try being in the middle of no where away from your family for 21 days (sometimes more) a month. If the money wasn’t there than nobody would stick around to do the job.

    • Oh and as far as being uneducated. Yes a lot of the men working may not have degrees and may have made some mistakes in life but they are smart enough to know that since this is the case they are going to go out and work their asses off to pay their own way (not sit back, make excuses, or hold out their hands) and that’s pretty smart in my book.

      PS… Through my own personal hard work I have become the boss of many “educated” guys. A piece of paper doesn’t mean as much as people think it does.

    • Neil Walton the other countries wells last longer and produce 100 times more from the first day all the way to the end of the well thats why its cheaper.

    • I worked in frac in West Texas and Oklahoma and lil bit in South Texas and Pennsylvania in the past 3 years. Just got laidoff a couple of weeks ago and I’ve worked for $15-$20 an hour and made a good living working 80-100 or more hours a week. My son was born lil over 2 years ago and in that time I’ve barely been home. Now I’m laidoff I’m gonna go get a job back home in Houston and be home everynight and be a father to my son. Oh and I went to college for computers myself 🙂

    • As for the overpaid comments. Oilfield workers are compensated because of their environment, their abilities and their sacrifices. I’ve offered to get people 100k+ jobs after the financial bubble burst and while they were barely getting by they say it’s not worth it to be away from home. I spent 10 years on call and I’ve went from job to job for months on end without going home. Now I’ve got a schedule so I know I’ll be gone 288 days this year. It’s no picnic working in the oilfield. How much value do you put on family? I won’t see mine 80% of the time. So there is no such thing as overpaid oilfield workers. As for undereducated I am no doctor but I have a BS in Physics and Masters in Industrial Engineering.

    • Most of us in the oilfield don’t make 6 figures. Not even close. If you think that we’re all overpaid, then I challenge you to come do my job for just one week. I’ll bet you don’t make it through the first day. Your fu-fu booty will quit or get run off in no time. We get worked to death, and face dangers that you couldn’t even imagine.

    • Watching a bubble burst is interesting.

    • Josh Smith easy brother, those large paychecks support my wife, child and myself as well as pay for hers and my schooling, and I’m not gonna work for 70 hours a week for 10$ an hour.

    • And I salute you. But don’t make me feel like crap because these low fuel prices are good for my business

    • And let’s not forget how expensive it is in the Bakken. Gas is still 2.60+ 2 bedroom apartment is $2000+ , just a spot to park an rv is $700+.

  5. Interesting stuff. Investors are running the show here in the US. No bank will touch the oil like investors do. The saudis are hell bent on keeping production right where it is and that will flood the market with oil and keep the price falling.

    • Absolutely they have actually admitted to being spoiled on over priced barrels .

    • You know Saudi can actually still profit on the low oil prices. Our shale plays are more expensive to drill and produce and Saudi knows this and is hell bent on killing the shale boom thus forth hurting America.

    • What u havent taken into account is saudi’s seem to want low prices to hurt Iran and Russia.

      Iran is close to producing a nuke by intel that has been released. By keeping prices low, it will bankrupt Iran and kill their nuke program. Same goes for Russia. Im sure the US has interest in bankrupting them and isn’t pushing OPEC to lower production to allow Russia to collapse internally. Its way cheaper than fighting another war. Esp with Iran cuz we all know they are thirsty.

    • And in the long run oil prices are going to skyrocket hopefully sooner rather than later.

    • I have a feeling they wont get as high as they did before. That was unsustainable high. I have a feeling it will rebound after the two countries collapse. Prob in the $60/brl range and no higher than $75/brl.

      Valleys always follow the peaks, and it will even out in the long run.

    • It’s actually refreshing seeing people that understand how the oil and gas industry works on the global level

    • Brian how and the hell do you know so much ? Lol I couldn’t have said it better

    • Plenty of people do not see the forrest from the trees, people should pay attention to world events. Instead they are worried about losing their heavy incomes and lifestyles (bars, partying and big trucks) they could never normally afford. Smh. Hopefully more people plan for the future if they are able to find a job in the oilfield again.

  6. All of you are missing the boat. Nancy pelosi. Is now trying to up the gas tax since oil and gas prices have dropped. Much like our property taxes. When prices drop they up the tax. But guess what when the value
    rises you pay . Think about it.

    Jack good luck with new position with Volvo.

  7. Let gas go up to $5.00 a gallon I don’t care.I work in the oilfield and my family lives off were I work.

    • Of course you don’t because like so many Americans you are a greedy selfish sob. Good for you!

    • Lmao I’m greedy……I help so many people out its not even funny.Before you call me a SOB you might wanna get in check daddy-o and don’t fluff with me.

    • If you want to bitch about fossil fuels try not to be so hypocritical and stop using them. Until then shut up.

    • I don’t think it’s very selfish jimmy, every one could live off of 5.00 a gallon for gas… How ever all those men and women that slaved for their fu kin money while you sat I’m a nice heat/ air conditioned climate, can no longer survive even tho gas is cheap! You keep running your mouth tho hopefully some day it’s in a bar full of laid off rough necks!

    • The oilfield plays such a big factor in the economy.

    • Brad yiure definitely correct and appreciate your normal response rather than the obviously uneducated comments of Cody and Philip. I also like how Cody told me what I do everyday and have never met me. It’s why you have a job in the oil field because you I assume have no other skills and get employed by these companies because you’re just dumb enough to do it. Have a good one.

    • Everyone could live off five bucks a gallon. Hahahahah. Christ. When minimum wage is around 8 bucks have fun feeding families and actually living when over half of your hourly wage is equal to a gallon of gas. Jesus Christ stupidity just runs rampant.

    • I apologize for working my ass off going to college and getting a great job that I love and don’t have to work 80000 hours a week “slaving” to make money. I do just fine. You chose that life. Don’t complain about it

    • I don’t complain about my life or job.I’m well educated as well.Half of my hourly wages don’t go towards fuel.

    • Wasn’t referring to you brad. But as my previous statement said the world doesn’t revolve around you and your family. The greater good is more important than the few. All there is to it. Take it easy.

    • Sounds like somebody hired out wrong lol

    • Just take a peak at Jimmys occupation. Enough said. Carry on men.

    • Great thing about working in the oilfield is when gas hits $5.00 or more we can still afford to buy it cause we make good money

    • The economy does in fact revolve around the oil industry. Low prices are nice at the pump and thats it. It will hurt the economy in the long run unless oil prices come back up.

    • Here’s an idea, MINIMUM WAGE ISN’T FOR ADULTS WITH FAMILIES, if you can’t afford to live find a new job. If the price of oil is that high I promise you there are plenty of jobs

    • Jimmy your an over educated idiot!! You would be the one at a bar sitting in a corner drinking a martini! And for the record you don’t know the difference in living with your check by check and making what us oilfield workers make when we work “8,000” hours haha what you make in 6 months I make in 2!!! And I don’t complain about my job cause I work like a real man should instead of sitting behind a computer and driving a Honda Accord!!

    • I know a kid who was recruited to a college to play ball, but his dad was an oil field worker so he didn’t have the extra cash that he would need , his dad can’t get a loan obviously unemployed. What can you do Jimmy? Can you, in your supreme position get that kid into a university all expenses covered , so he can get a degree? Doubt it. People like you piss me off.

    • Truth is, jimmy Andrews isn’t man enough to work ONE SHIFT in the patch. It’s idiot liberals like him that are keeping the keystone from happening, creating thousands of jobs! Without our American oilfield workers we would be depending on foreign oil! We have enough oil in the US to sustain us for hundreds of years, we need to stop depending on foreign oil and build Americas oil business. Vote republican in 2016, we’ve had enough of liberal pussies like Jimmy!

    • Guess he is done people.He can’t hang with oilfield hands.

    • It’s funny how them college boys get upset because they go spend money to make the money we throw away. LMFAO.

    • That is funny Eugene Rosalez.

    • They are all clueless, i have respect for every person in the patch. I’m truck driver and haul oversize equipment all over the lower 48. Keep drilling to keep the price of diesel cheap! A majority of the population doesn’t have clue on what the price of fuel does to the price of all the goods that they purchase on daily basis let alone the price of the gas they put in their cars or the electricity they put in their hybrids!

    • My husband is a machine shop supervisor, he has up until recently worked his regular 80 plus an average of 60 OT hours not because he is uneducated or greedy (he’s neither) but that is what the demand has required. Just like most that work in the oilfield he has worked holidays, sacrificed time with friends & family and had to push through when he is completely exhausted. Now his hours have been drastically cut, his mom who is very well educated was laid off as an administrator for Baker Hughes and his dad has gone from working 6 days a week to only 3 as a contract welder. This slump effects all walks of life. I cannot stand when people say things that put down our oilfield workers or categorize them as uneducated, it takes a special person who work their ass off to work like oilfield workers have done for years. Education is valuable but there’s alot to be said about the hardwork & dedication these people posses, which isn’t something that can easily be taught. Prayers to the families that have suffered lay offs.

    • My husband went in the oilfield because that’s what he’s always wanted to do. He’s a very educated man, did 5 years in the navy. You do not need a degree to be successful. I know thousands of people who have degrees but can’t get a job in their field. That’s sad and a waste of time. Those of you who are complaining about gas going back up obviously have never spent a day out in the field. Those are some hard working men, they love what they do, they provide for their families and they just want to go back to doing what they love to do.

    • Jimmy, have a heart. You could get laid off just as easily as anyone else. You are no better than any of these men. You wouldn’t last 5 minutes doing what they do. Wow!

    • He can’t evenan up and apologize. He is gonna be a coward.One thing about the oilfield is we aren’t coworkers we are family and we take care of each other.

    • Praying for $5.00 fuel is a selfish and short sighted thing to say. The oil companies have been recording record profits for almost a decade. In the natural cycle of oil and fuel prices it is time for a downward trend. Fuel prices have been overinflated and now we are seeing a return to a reasonable level. The U.S. Is still producing but oil companies have slowed drilling efforts for the time being because it isn’t profitable right now. Eventually it will come back up but for now it needs to stay low and let business owners and low income families enjoy the extra money for a while. Your small mind revolves around the oil field while the entire rest of the country is ready for a break. In my farm operation I buy approximately 5000 gals of diesel per year. So the current $1.25 price drop helps improve my budget with a little over $6000 of surplus. The world is far more important than the inability of a bunch of roughnecks to save money for when the oil field finally goes bust.

    • My husband has a college degree. Student loads don’t pay themselves and he makes twice as much working in the field than he would behind a desk any day. He sacrafices a lot, is home more than most, but he likes it for now.

    • $5.00 nooooooooooooooooooooooooooooooo! a gallon i make as much as oilfieldworkers but i like gas at $2

    • Good for you we like $5.00 a gallon

    • Lol… I love when they call us uneducated… They’re just mad that they wasted all that time and money on college and still can’t make 100k a year…

  8. Hold on friends..
    all these Rigs being laid down and the low price of oil will Bite North America and the US in 24 months or less.
    Enjoy now but Gas will be 4.50 a gallon by end of 2016,
    Mark my word. X

  9. You is it the oil companies can organize a shut down but the trucking companies can’t

  10. Jimmy Andrews you do know most of the rest of the world pays upwards of 8 dollars a gallon right? We are lucky. Let them rise…oilfield families will eventually work again and so will you.

  11. Most oil companies make no profit unless oil is around 60-70 dollars a barrel…just saying

  12. So basically when is this oil rigs picking up that’s the ???

  13. I like that.. “laid off” how about stacked out. Meaning no more work.

  14. This affects all of us when this happens people it’s not just us OILFEILD workers it everyone!

  15. Hope this gets solved fast. Bills don’t wait and stomachs don’t get feed by themselves !!!!!

  16. Working is good.. but let’s not work ourselves out of work..

  17. I don’t have a issue with what the labors make the issue I have is the muniplating the market, ( if we don’t get what we want we’ll shut it down) what if farmers did this ? You’d go hungry? Groceries would be just like gas? These companies made record profits but can’t take a slump in price without trying to hike the price, Greed, straight Greed, it what’s wrong with America, u think that’s a fair playing field? What a joke

  18. Lower supply will spike prices

  19. Oil companies make 1000’s of % in profit at $100bbl. They still make 1000’s at $50bbl. It’s all a matter of greed

  20. I think you all missed the point… the hedgers are buying now.. they kow it will rise… and they will make millions… I bet the Koch bro know this too.. and have shut the rigs down to test the wters and see what it does to the market… limit the availability and the price goes up… its all a game… if you buy stock.. wait till it rises and falls to 40 and buy buy buy… you will thank me in 2017

  21. Don’t know what oil ticker they are watching. WTI DID NOT close 8% up today. Pure lie.

  22. Lord help us to understand what’s truly going on to determine what to do in this crisis !

  23. Michael T. Allred Alan Michael Allred

  24. Stacking rigs don’t have an effect on production for @ least 12 months. This is going to be 18+ month slowdown. Then hang on, it will be a free for all

  25. How about stop buying the oil from terrorist countries, then our people can keep working, keep our supplies here. Prices stabilize, and politicians can’t blame Anyone else for our gas prices.
    Problem solved.

    • Oil is traded on a world market and the U.S. Has the ability to produce enough oil to support themselves. Even if we didn’t buy oil from opec it would still be cheap because they are flooding the market to the point we can’t sell oil to anybody else.

    • Maybe, but we wouldn’t be supporting countries that hate us, we wouldn’t be subject to opec flooding the market, and we wouldn’t be selling our souls for oil. They could regulate production here to keep output steady. That’s the whole problem. Stock holders demand high returns, companies sell out their employees in the name of making more $$$ with less people, and out country doesn’t add an import tax to make our own stuff competitive here.

    • We don’t produce near enough high quality crude here in the US to support us. Conversion to natural gas I feel would be our best shot of being completely independent of foreign oil.

    • So we don’t produce enough, yet we sell ours to other countries and then turn around and buy ours from terrorists? Hmm makes perfect sense.

    • It does scott… how about do some deep research on the subject. 😉

  26. Let prices go back up, I hope they get back to $4 a gallon. When prices drop oil companies stop spending. When that happens it screws a lot of .

  27. Lol, and y’all thought Dallas was just a made up movie. Oil moves this country & when it cost more than your pay every week, everything else in your life goes lacking, so the whole USA suffers. All I can say, theres some crooks in this country eating up the small people & one of these days when they are backed into a corner, they are coming out fighting & you crooks best not be in the way.

  28. Keep up production, don’t stop it.

  29. Cheaper fuel costs puts people to work. I know I go farther, travel more, buy more, spend more when I actually have money in my pocket. I can’t be the only one. It’s all excuses to raise prices artificially. Stop the madness.

    • Cheaper fuel puts people out of work. Those that lose work don’t spend as much regardless of prices.

    • Whats the percentage of people put out of work due to lower prices? I’m perfectly fine with a few unemployed people if gas stays under $2.00

    • Cheaper fuel brings a shortage then $5 a gal at the pump

    • Haha and thats exactly what capitalist said when prices went up… “high gas prices mean budget cuts… meaning job cuts!” Now its low they find more reasons to cut jobs and fatten their profits.

    • Really your ok Lloyd with unemployed people so you can have your 2.00 a gallon , well let’s see you say that when all those hard working oilfield workers are on unemployment families are on govt assistance and your check is getting the hell taxed out of it to pay for them.. I would love to see the idiots like you go a week or even a day with out using the benefits of the oilfield , heat,electric,fuel and so on..

    • Lloyd is a moron! What he doesn’t understand is oil money runs this country! From the government down to a mom and pop grocery store! Everything we do is dependent on oil and gas that I “we” oilfield hands bust our ass to provide for you! Again, why don’t you get off your lazy ass and come hang with us a few days!

    • A Few ppl out of work lol 1000s out of work….I guess everyone is ok with ppl being on unemployment or government assistance…bc with the “few” ppl out of work there won’t be thousands of dollar going into the tax pool to help fund those on government assistance and other areas of government that use tax money. Like schools and police/fire departments etc. I think it’s funny when ppl say how bad the oil industry is and how rich these tycoons are. They are giving 1000s of ppl jobs and paying them for their work! They are giving families a future…I know my son will benefit from my hubby’s job and that is what is most important. My husband works hard to make sure we are taken care of.

    • Once oilfeild workers realize the world doesn’t revolve around them they’ll get over it and find a more dependable job.
      Hey the railroads always hiring

  30. The problem is these low fuel costs are making domestic fuel production too expensive to continue and that means jobs, (the only jobs and industry that have been propping up our horrible economy), are drying up,.
    It’s Obamas plan to destroy America and he is purposely working towards the elimination of the middle class.

    • The low fuel costs are promoting other industries to expand and hire more. It is past time for the oil field to get back to a reasonable level. They have been posting record profits for almost a decade. Meanwhile other businesses have been held back by high fuel costs. Sorry to tell you but the number of people who benefit from low fuel prices is far higher than the number of people who benefit from high fuel prices.

    • You obviously have no idea what you’re talking about. None. No businesses are hiring because gas got a little cheaper.
      Name one. Seriously. This is a temporary low to punish us for working toward energy independence and collapse the Russian economy.
      You apparently paid no attention in economics class.
      And savings in transportation costs are minimal and all but absorbed by the skyrocketing costs of Obamas completely f’ed up healthcare snafu.
      Quit relying on MSNBC for your information and learn a little in your own.
      You have no idea what you’re talking about. Zip. Zero. Nada.

    • I’m sorry I missed the artical where it said the fed was shutting down wells and laying off workers. I thought that was private business doing that. And as for economics class the more oil we have the cheaper the cost. But here is economics 201. Its called break even annalysis . that where a set price is determined where a company will break even make or loose money on a project. What is happening is that the price is too low to make us oil profitable. Hence the business owning those wells are closing them to increase there profitability. But once again at what point is this the feds part? At best you could say the idea of drill baby drill put us where we are at today. I would suggest you lay off fox news for your propaganda

    • And Daryl provided with all the proof… ITS OBAMA! hahaha what a fool! #letsblameobamaforyoursmallpenistoo

    • Austin you are way off! I can assure you, and it has been proven more times than not, that way more people benefit from oil and gas production than not! Drive you geo metro without oil and see what happened

    • Actually Daryl Dykema you’re wrong my friend. The railroad is booming and hiring like crazy.
      Glad we don’t depend on outrageous oil prices to keep our company afloat.

      Economics 101: less money spent at the pumps is more money spent throughout the economy. There’s a fact for ya.
      Just because oilfeild workers are hurting doesn’t mean everyone else is.

  31. so…..we are going to allow big oil to hold us all hostage with jobs….interesting.cause i dont like paying four dollars a gallon for some big wig to relax in some foreign land sipping champagne from whatever the filthy rich sip it from.they hate losing money but they dont care about the common man who has to deside if he wants to fill his truck to get to work or feed his family so they dont starve….piss on big oil.crooks.

  32. And …..cheap gas prices are over I hope you like that big SUV you just bought…

  33. Going back to work as a Paramedic in a 911 system… forget the oil, lolz let the blood flow….

  34. The u.s. is proving a point. If the prices stay this low. We will bankrupt other countries. (So they say). Just a big game is all.

  35. Complaining that you want $4 gas again so people can “go back to work” is just like increasing taxes to put more people on welfare. Taking other peoples money to give it to some one else. Here’s a novel idea get another job. Keep gas low to help the entire country not high to benefit a few

    • So you’re pinning this on us oilfield guys? We aren’t the CEO’s who raked in greedy profits only to see oil bottom out. If we had it our way we would see oil at $75 a barrel so that our fellow Americans can still afford to put gas in their cars and we can still earn a decent living. I love how people like you just assume we are all greedy and arrogant. Guess what? I hold a college degree from an accredited 4 year university, but since my blue collar daddy instilled hard work in me I got an oilfield offer and took it bc I’m not a pussy afraid to work. Can’t wait to own my own business and piss people like you off even more since you seem to hate to see dirty oilfield trash succeed.

    • Who is going to get the oil and natural gas for you to be able to drive, wear clothes, basically do everything you do then?! Why don’t you get off your ass and get a good job! Moron

    • Sean, you sir are a gummy-bear idiot. That is all…..idiot.

    • There are towns dependant on oilfield workers. So yea 1.86 a gallon sounds great, but in the long run hurts the economy

    • Let him drive his bike everything see what he feels lol …

  36. When oil prices fall, the companies who produce it can’t afford to pay the contractors who work for them. All employees and contractors would have to take a pay cut to do the same job. That is why they quit drilling.

  37. We need bush and another illegal war.. and another 911… thats what america needs, a good ole conservative republican.. lmao!!

  38. The Saudis are trying to maintain market share by producing oil at lower prices , they can produce at 5 dollars a barrel, where’s as in the usa it’s probably nearer 70 dollars am afraid to say low prices are here to stay unless world events increase oil demand and push up the price of crude! Supply and demand and market manipulation at its best !

    • No.. If they keep trending at a low price they will be in trouble as well. They will be running on cash reserves. There is no way its profitable to run at 5/b they will be broke.. Easily and quickly. If they wanna profit juat like us we need to maintain higher prices.

    • They will still be happy at 30 /b ! They are not going to cut production to artificially prop up the price to keep drilling in the us profitable ! They would sooner keep market share and ruin the usa s oil Industry ! I don’t think the Saudi are hurting when the U.S. Oil production is cut the oil price will rise !

    • Not exactly how it works Kevin! Foreign greed is what will drive the price up! Google the Kings and higher ups for Saudi and look at their houses! They have gold toilets and ass wipers! It will go up! That’s a guarantee

  39. I’m sorry but cheap gas means ppl get disposal cash to spend on toys and feel like driving boats start selling ATVs get sold snowmobiles get used jet skis suck fuel down all weekend ppl go on trips with there RVs

  40. Never though oil field workers were such cry babies and let’s not say SELFISH . That’s why you save some of your paycheck and not live a dream life and think this situation will never happen. Just like drug dealers easy money spend it all get caught start crying nothing saved

    • Then they want to say that it affects everybody. It sure does. It’s been a while where I can fill up that module truck for under 500 bucks. Pray for oil field workers. They can kiss my ass. Did they pray for us when diesel was 4.25 a gallon. Did they pray that our families get to eat. But they want us to feel sorry for them. Go find another job.

    • So you’re pinning this on us oilfield guys? We aren’t the CEO’s who raked in greedy profits only to see oil bottom out. If we had it our way we would see oil at $75 a barrel so that our fellow Americans can still afford to put gas in their cars and we can still earn a decent living. I love how people like you just assume we are all greedy and arrogant. Guess what? I hold a college degree from an accredited 4 year university, but since my blue collar daddy instilled hard work in me, I got an oilfield offer and took it bc I’m not a pussy who’s afraid to work. Can’t wait to own my own business and piss people like you off even more since you seem to hate to see dirty oilfield trash succeed.

  41. I work for halliburton we went from 126 hrs a week to 70…no we are not over paid …I work 28 and 14 in west Texas I live in Louisiana so I’m away from my family for 28 days at a time and to add we oilfield works make this country what it is ok let’s say every oilfield worker quit are u willing to go take our places ..I don’t think so u wouldn’t last 24 hrs getting 5 hrs of sleep a day for 28 days again u wouldn’t last 24 hrs. .and one more thing the work we do is very dangerous. ..see my point is I can leave for a hitch and never come back home to my family cause anything can happen at anytime respect the oilfield workers we put our lives on the line when we out it the field …yea it’s by choice but no way in hell I will make it doing 40 hrs a week….no way ok I’m done god bless the oilfield workers

  42. Here’s think roughnecks live a dreamlife don’t get. Oil is not gonna stay this low. It topped out at like 120 a barrel.. It’s gonna go higher it will hit a new ceiling. Oh and if u think we live a dream life,come stand a tour one time. Oil is low right now so enjoy it. It won’t be this low long

  43. Strategic Market Manipulation, largely due to the “back and forth” effect of the Oil industry and Steel industry. It’s a market control device and the paying public are just along for the ride.

  44. We had 6 rigs stack within the last 2 weeks and slowly still watch them stack…this problems needs to get fixed fast…because it’s not just the oilfield workers that are getting hurt about this ..everyone is even down to the pawn shops

  45. They want to add extra tax to gas. The only way to justify this is to lower the price to 2.00 a gal. Then tax it .25 a gal and when it goes back up and hits 5.00 a gal it will be the the fault of the big oil companies. And you Obama loving people will take it hook line and sinker. Look up what your state and federal tax is on a gal of gas in you state as of now. You may be a little shocked.

  46. I say let all drive hydrogen fueled cars oh hold up that to easy isnt it?

  47. All these greedy morons panicked and laid off so many people.

  48. Its unbelievable how many ignorant people are.. Some shouldnt even be allowed to comment..

  49. Chevron is feeling it now

  50. How did the oil industry ever survive when gas was $1.50/gal?

  51. We haven’t seen the bottom yet. Existing wells globally have to slow output before prices come up. Rail services have slowed delivery creating a artificial increase. Once they turn their attention to oil again it will fall. If you work in the oil field I hope you had enough brains to bank as much cash instead of buying the expensive toys. This one could last a few years.