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John Harper
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Registered: 3-9-2017
Location: SoCal
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Quote: Originally posted by MrBillM  | | Having weathered the '73 and '78 craziness and anticipating the inevitable coming chaos, I've been making a point of topping my tanks upon return from
each of my infrequent trips out of town. |
1973 and 1978-9 were supply restrictions. The Arab oil embargo in '73, Iran's revolution '78-9. Both created supply issues.
Today, we have a collapse in demand, not a problem with our supplies of gas. Same reason people buying water are fools, there is no threat to our
multi-billion dollar water supply system. Nor our TP supply chain, for that matter.
John
[Edited on 3-26-2020 by John Harper]
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David K
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In 1978/1979, I was working at a gas station when the price exceeded $1/gallon for the first time... Which was crazy since the pumps could only go to
99 cents! The pumps were made to pump liters until new pumps arrived. That was a tense time. We had odd/even days for sales, too (based on you
plates).
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Hook
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Registered: 3-13-2004
Location: Sonora
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| Quote: Originally posted by John Harper | | Quote: Originally posted by MrBillM | | Having weathered the '73 and '78 craziness and anticipating the inevitable coming chaos, I've been making a point of topping my tanks upon return from
each of my infrequent trips out of town. |
1973 and 1978-9 were supply restrictions. The Arab oil embargo in '73, Iran's revolution '78-9. Both created supply issues.
Today, we have a collapse in demand, not a problem with our supplies of gas. Same reason people buying water are fools, there is no threat to our
multi-billion dollar water supply system. Nor our TP supply chain, for that matter.
John
[Edited on 3-26-2020 by John Harper] |
It's a little different that water and TP. Ya cant really cut back on drinking water or taking a s***. You can reduce your driving.
There is MUCH more to this downturn in oil prices than a CV-induced lack of demand. It started before the CV period, by about 2 weeks. But the virus
is certainly quashing demand, bigtime.
There is allegedly a market share peeing match between Russia and Saudi Arabia. The conventional theory has been that they (or possibly only Russia)
want to force the small to mid-sized, heavily-leveraged shale oil producers in the US, out of business. And that is largely true.
But I heard an interview today with the CEO of Pioneer Natural Resources who claims that the big multinationals are fine with this level of oil
pricing, in the short term. He mentioned Exxon, specifically. The biggies know that it will bankrupt a lot of the small and midsize producers and they
are waiting to buy them out of bankruptcy or before that for 1/10 of what their stock trades at...........which aint much, now. Or, they go away and
the US supply gets reduced, and that increases the value of their oil.
This CEO claims that about 80% of these leveraged oil producers could go under, and if they do, the US will be right back to being dependent on
foreign oil. He claimed we would have to import about 60% of our oil.
It was shale oil that made us energy independent. But many producers cant make a profit when oil is under about 40 bucks/barrel, or so, with their
debt levels. Companies like BP, XOM, CVX dont have those levels of debt; they have cash. They are circling sharks...........while Russia and the
Saudis take the blame.
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