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Hook
Elite Nomad
Posts: 9010
Registered: 3-13-2004
Location: Sonora
Member Is Offline
Mood: Inquisitive
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| Quote: | Originally posted by MitchMan
I don't why the price for a barrel of oil on the global market is so low recently. Heard various things.
[Edited on 10-12-2014 by MitchMan] |
There is pretty clear evidence over the last three months that the economies of Europe, China and, to a lesser extent, the US, have begun to slow.
Slowing economies mean less oil consumption. When evidence starts to show this, money invested in oil finds other places to invest it, irrespective of
the actual amount of oil being used.
The oil markets are no longer purely supply and demand. Hedge funds and other aggregations of capital have made sure of this.
In the short term, barring a major international incident, energy stocks are probably not the place to be.
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Ateo
Elite Nomad
Posts: 5900
Registered: 7-18-2011
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I'll tell you one thing: My customer bought a station in San Ysidro recently and his gas sales have been boosted significantly by the upward march of
Mexican fuel prices.
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bajabuddha
Banned
Posts: 4024
Registered: 4-12-2013
Location: Baja New Mexico
Member Is Offline
Mood: Always cranky unless medicated
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Back 'in the day', in the '90s there was a fair community of ex-pats living in Mulege (in town, not at Posada or the Orchard) who were there because
the cost of living was low enough they could live comfortably in Paradise on their $1k / month Social Security check. One guy told me he could pay
rent, eat out twice a day, have a maid in twice a week for a couple of hours to clean up after him, and afford his 'toddies'. They would meet for
their morning coffee/Pacifico klatch every morning at Donna Moe's for an Egg McDonna, then on to El Candil next door, and La Jungla Jaime's in the
afternoon. The price of fuel was a factor then too.
Those days are GONE. By y2k most (if not all) had moved to Yuma or El Centro because it was cheaper living in the States. It used to be cheaper to
cross the border to Mexico to shop, too; now it's just the opposite.
My guzzler of a truck (F250 w/V-10) gets horrible mileage when pulling my 5th wheel, and not much better empty. That limits what side trips i'll be
taking while in Baja, too. I can 'afford it', but the price at the Pemex is a very valid question; it also determines the prices at the registers
too. Pescadores need fuel for their boats for fish and camarones, trucks need to deliver to the stores. When fuel goes up, so do the sticker prices
and menus. It may not cause anyone to cancel their trip to Baja, but it may determine how long one's stay may be when they get there.
As far as foreign influence on deep drilling is concerned and lowering the prices, my first thought is, you gotta be kidding, right? More pieces of
the pie to share, more profit is more power, and it ain't going to 'trickle down'. They aren't in it for their benevolence. World economy will
dictate Mexico's fuel prices, so time will tell. Right now, especially with all the road damage from storms, it will pay for the reconstruction (and
has been for several years now) so my guess is, we'll just have to get used to it.
I don't have a BUCKET LIST, but I do have a F***- IT LIST a mile long!
86 - 45*
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aguachico
Senior Nomad
Posts: 602
Registered: 3-23-2007
Location: tijuana
Member Is Offline
Mood: logic cannot get thru to the illogical
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Internet posted exchange rates are for 'block' buyers of cash.
I got 13.2 from my ATM last week because of no transaction fee.
I saw the Bellas Artes pemex advertising an exchange rate of 13:1. After they rip you off, it's propbably 12.7:1 which is the average rate for
casitas.
Yes the cost of fuel as kept my baja trips north of Ensenada. I feel for resorts that rely on drive in business only.
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
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It's still pretty cheap to live in Baja, all things considered, especially if you own your own casita.
My calculations say that, if you own your own casita, one adult can live quite well in Baja for $500 USD/month PLUS the cost of entertainment,
medical, and traveling away cost. Two people can live for $800 USD/month PLUS medical, entertainment, and cost of travel away from Baja. The $500 or
800 above includes food, Mexican medical ins, auto ins, cable TV and Internet, phone, electricity, propane, gasoline, prop taxes, Fido fee, water,
incidentals, clothing, auto repair, and some house maintenance.
I consider eating out as entertainment as it is not truly a necessity.
If you live extravagantly, insist on driving a gas guzzler to do basic around town driving instead of a small vehicle, do not budget at all, and avoid
being economical, sure you can ring up a lot of money, but if you do that, I don't see how you can say the cost of living in Baja is the same as
living in the USA. Also, one giant factor in the cost of living in USA Vs Baja is that in the Baja, you don't have the entertainment opportunities
like you do in the USA such as going to performing arts theatre, Laker games, Alicia Keyes concerts or pro football/baseball games. The towns are
small so there is no racking up miles or Auto repair, and who needs dry cleaned clothes, shoe repair, or a 3 piece suit? Come on, water utility is
$13 usd/mo, electricity is $0.10/KWH, and who needs a hot water heater in summer? I have 5.5 tons of mini-split A/C, but I can keep that to $60
USD/mo in Summer and down to $25 USD or less off season.
Also, set up your banking right and you can get top peso for your US dollars from the ATM, currently Visa Credit/Debit card exchange rate =13.4203, so
ATM rate should be 13.35 right this second with no fees. If you fail to do this, then you will pay 12.0 or worse which would be equivalent to paying
11% interest expense on all the money you spend per year.
The only things that are truly cheaper in Baja than in the USA are labor and cost of housing, and the big one is the inexpensive life style.
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Bajahowodd
Elite Nomad
Posts: 9274
Registered: 12-15-2008
Location: Disneyland Adjacent and anywhere in Baja
Member Is Offline
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| Quote: | Originally posted by bajabuddha
Back 'in the day', in the '90s there was a fair community of ex-pats living in Mulege (in town, not at Posada or the Orchard) who were there because
the cost of living was low enough they could live comfortably in Paradise on their $1k / month Social Security check. One guy told me he could pay
rent, eat out twice a day, have a maid in twice a week for a couple of hours to clean up after him, and afford his 'toddies'. They would meet for
their morning coffee/Pacifico klatch every morning at Donna Moe's for an Egg McDonna, then on to El Candil next door, and La Jungla Jaime's in the
afternoon. The price of fuel was a factor then too.
Those days are GONE. By y2k most (if not all) had moved to Yuma or El Centro because it was cheaper living in the States. It used to be cheaper to
cross the border to Mexico to shop, too; now it's just the opposite.
My guzzler of a truck (F250 w/V-10) gets horrible mileage when pulling my 5th wheel, and not much better empty. That limits what side trips i'll be
taking while in Baja, too. I can 'afford it', but the price at the Pemex is a very valid question; it also determines the prices at the registers
too. Pescadores need fuel for their boats for fish and camarones, trucks need to deliver to the stores. When fuel goes up, so do the sticker prices
and menus. It may not cause anyone to cancel their trip to Baja, but it may determine how long one's stay may be when they get there.
As far as foreign influence on deep drilling is concerned and lowering the prices, my first thought is, you gotta be kidding, right? More pieces of
the pie to share, more profit is more power, and it ain't going to 'trickle down'. They aren't in it for their benevolence. World economy will
dictate Mexico's fuel prices, so time will tell. Right now, especially with all the road damage from storms, it will pay for the reconstruction (and
has been for several years now) so my guess is, we'll just have to get used to it. |
I totally understand your concern about foreign companies. However, Mexico is sitting on a crapload of deep water oil reserves in the Gulf, for which
they have neither the technology nor the equipment to tap.
The current useable reserves would by them self cause Pemex prices to continually increase.
I am absolutely not a fan of international oil companies. But, the key here consists of two factors.
First, can Mexico sign contracts that won't give away the store.
And, can they rely on enough of the new crude to be available inside the country to keep their domestic prices down.
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bajabuddha
Banned
Posts: 4024
Registered: 4-12-2013
Location: Baja New Mexico
Member Is Offline
Mood: Always cranky unless medicated
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Howodd, too true, and like I said, time will tell. BP and gang are not in it to play 'nice', it's all about the profits.
Mitch, it depends on where in the US you're talking about. Here in my li'l hamlet in southern NM you can buy a site-built home for less than you
think, and yes, eating out is a 'luxury'.... I've lived in both places, and here is cheaper than Mulege, all-in-all. Especially the gas prices for
now.
I don't have a BUCKET LIST, but I do have a F***- IT LIST a mile long!
86 - 45*
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rts551
Elite Nomad
Posts: 6699
Registered: 9-5-2003
Member Is Offline
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| Quote: | Originally posted by MitchMan
It's still pretty cheap to live in Baja, all things considered, especially if you own your own casita.
My calculations say that, if you own your own casita, one adult can live quite well in Baja for $500 USD/month PLUS the cost of entertainment,
medical, and traveling away cost. Two people can live for $800 USD/month PLUS medical, entertainment, and cost of travel away from Baja. The $500 or
800 above includes food, Mexican medical ins, auto ins, cable TV and Internet, phone, electricity, propane, gasoline, prop taxes, Fido fee, water,
incidentals, clothing, auto repair, and some house maintenance.
I consider eating out as entertainment as it is not truly a necessity.
If you live extravagantly, insist on driving a gas guzzler to do basic around town driving instead of a small vehicle, do not budget at all, and avoid
being economical, sure you can ring up a lot of money, but if you do that, I don't see how you can say the cost of living in Baja is the same as
living in the USA. Also, one giant factor in the cost of living in USA Vs Baja is that in the Baja, you don't have the entertainment opportunities
like you do in the USA such as going to performing arts theatre, Laker games, Alicia Keyes concerts or pro football/baseball games. The towns are
small so there is no racking up miles or Auto repair, and who needs dry cleaned clothes, shoe repair, or a 3 piece suit? Come on, water utility is
$13 usd/mo, electricity is $0.10/KWH, and who needs a hot water heater in summer? I have 5.5 tons of mini-split A/C, but I can keep that to $60
USD/mo in Summer and down to $25 USD or less off season.
Also, set up your banking right and you can get top peso for your US dollars from the ATM, currently Visa Credit/Debit card exchange rate =13.4203, so
ATM rate should be 13.35 right this second with no fees. If you fail to do this, then you will pay 12.0 or worse which would be equivalent to paying
11% interest expense on all the money you spend per year.
The only things that are truly cheaper in Baja than in the USA are labor and cost of housing, and the big one is the inexpensive life style.
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What kind of life do you have if you never do anything?
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
Member Is Offline
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Not living extravagantly is not the same, at all, with never doing anything. Living economically, on a budget not at all the same as never doing
anything.
There are an infinite number of very fulfilling and constructive things to do while on a budget, living frugally, and knowing how to get real value
with your time and resources and skills. In fact, I think it is quite restrictive to limit recreation to "going out".
Fishing is just one thing that doesn't cost much money at all. I can go out on my boat and fish all day on $35 USD. Study a subject, teach yourself a
skill, read, work on a project around the house, keeping up the maintenance on the house and yard...very rewarding and gratifying, having some beers
with friends, barbecues, working on the boats, doing photography and videography and doing the editing for a slide show or short video, programming a
website, working with Photoshop on some photos to be printed out for wall decoration or slide shows, talking to neighbors and working on my Spanish
speaking, entertaining and visiting with guest relatives and friends from the USA at my home in Baja, playing music, and, one of my very favorite
things to do, cooking and barbecuing. All these things are very cheap and low costing. And, this is just scratching the surface. There are many
more constructive entertaining things to do, the list is endless. And these are just some of the things that I do while in Baja, which is only 1/4th
of my time. Got grand kids in USA...keeps me very busy and is very cheap to do. I work out a lot too...very cheap.
I know a lot of people who's only idea of entertainment is to go out to restaurants, cantinas and expensive entertainment events where all the
entertaining is done for them, to them, and not by them...there's plenty of great TV on cable to be saved on DVRs for that kind of non-participation
type entertainment. Nothing wrong with that. I do that sometimes...less and less though, these days (bar hopping, that is).
Hey, movies theaters in La Paz are only $4 USD! I smuggle in my own candy and drinks. I did say I was cheap, didn't I?
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rts551
Elite Nomad
Posts: 6699
Registered: 9-5-2003
Member Is Offline
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I can not live in Baja for 500 a month and I live in a town that has no entertainment as you define it. fishing alone, using your cost, twice a
week would cost more than 1/2 your monthly budget.
I am not extravagant by any means but find over 1000 a month more realistic.
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
Member Is Offline
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As I wrote above, the $500 USD I mentioned was for basic living expenses that do not include 1)travel outside of Baja 2)medical costs 3)entertainment
costs. The emphasis is on "living" expenses. I should have included, in this list of 3 exclusions, an exclusion for costs of hobbies and an exclusion
for gifts to friends and relatives.
That $500/month amount presupposes that you structure your lifestyle to conform to reasonable economic choices such as a gas efficient vehicle for
everyday transportation, not leaving appliances on when not in direct use, using Skype for all the calls and text messaging that you can make from
home on your internet instead of on a cell phone or land line. During the summer I use a fan a lot and don't turn on the air conditioner until I need
to. I use all energy saver bulbs for all lights, including the outside 4 security lights. FWIW, my Baja wardrobe consists of sandals (no socks),
jean cut-offs, short sleeve Hawaiian shirt, that's it.
Fishing is an entertainment cost.
I am really curious as what living expenses you spend that add up to a necessity of $1,000 USD/month on.
FWIW, here is how I came up to $500 USD/month. Certain infrequent costs were annualized and then divided by 12 months to get the monthly cost.
USD
Auto Ins 21
cable TV 23
Clothing 19
electricity 47
fido fee 37
Visa Fee (RT) 16
food 183
Gaso 45
Incidentals 15
internet 20
Mx Med Ins 10
Phone 16
Prop Tax 9
propane 10
maintenance 25
water utility 10
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rts551
Elite Nomad
Posts: 6699
Registered: 9-5-2003
Member Is Offline
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I am not about to divulge my finances on the internet. Suffice it to say I spend more than you do and am happy doing it.
| Quote: | Originally posted by MitchMan
As I wrote above, the $500 USD I mentioned was for basic living expenses that do not include 1)travel outside of Baja 2)medical costs 3)entertainment
costs. The emphasis is on "living" expenses. I should have included, in this list of 3 exclusions, an exclusion for costs of hobbies and an exclusion
for gifts to friends and relatives.
That $500/month amount presupposes that you structure your lifestyle to conform to reasonable economic choices such as a gas efficient vehicle for
everyday transportation, not leaving appliances on when not in direct use, using Skype for all the calls and text messaging that you can make from
home on your internet instead of on a cell phone or land line. During the summer I use a fan a lot and don't turn on the air conditioner until I need
to. I use all energy saver bulbs for all lights, including the outside 4 security lights. FWIW, my Baja wardrobe consists of sandals (no socks),
jean cut-offs, short sleeve Hawaiian shirt, that's it.
Fishing is an entertainment cost.
I am really curious as what living expenses you spend that add up to a necessity of $1,000 USD/month on.
FWIW, here is how I came up to $500 USD/month. Certain infrequent costs were annualized and then divided by 12 months to get the monthly cost.
USD
Auto Ins 21
cable TV 23
Clothing 19
electricity 47
fido fee 37
Visa Fee (RT) 16
food 183
Gaso 45
Incidentals 15
internet 20
Mx Med Ins 10
Phone 16
Prop Tax 9
propane 10
maintenance 25
water utility 10 |
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MitchMan
Super Nomad
Posts: 1856
Registered: 3-9-2009
Member Is Offline
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Traditionally, when someone uses the term "finances", they are talking about your personal balance sheet at a given date that includes details of your
total assets, total debt, net worth, and income and expenses for a current year.
Not asking you for that, in fact, didn't ask you for anything. I just expressed my curiosity of what would constitute your experience limited to just
living expenses in Baja for one month. I mean you did express an opinion on my living expense with the implication that my number was not realistic
and you did disclose that you are spending $1,000 a month. In the spirit of sharing helpful info in this forum, which many nomads do every day by
divulging information of their own experiences, I just thought that info that supports a conclusion and an opinion merits simple substantiation, which
is what I did.
You don't have to...your prerogative, of course. Didn't ask you for anything, certainly not your 'finances'. If you choose not to substantiate your
number, so be it.
[Edited on 10-15-2014 by MitchMan]
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rts551
Elite Nomad
Posts: 6699
Registered: 9-5-2003
Member Is Offline
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| Quote: | Originally posted by MitchMan
Traditionally, when someone uses the term "finances", they are talking about your personal balance sheet at a given date that includes details of your
total assets, total debt, net worth, and income and expenses for a current year.
Not asking you for that, in fact, didn't ask you for anything. I just expressed my curiosity of what would constitute your experience limited to just
living expenses in Baja for one month. I mean you did express an opinion on my living expense with the implication that my number was not realistic
and you did disclose that you are spending $1,000 a month. In the spirit of sharing helpful info in this forum, which many nomads do every day by
divulging information of their own experiences, I just thought that info that supports a conclusion and an opinion merits simple substantiation, which
is what I did.
You don't have to...your prerogative, of course. Didn't ask you for anything, certainly not your 'finances'. If you choose not to substantiate your
number, so be it.
[Edited on 10-15-2014 by MitchMan] |
No thanks. learned a long time ago to keep most personal stuff to my self.
Each person probably needs to figure out their own budget and live their own life anyway. I am sure there are people spending way more than me.
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