Normally open July 4th only---the one day a year when partisan politics, religion, etc. are acceptable topics on this Board. (The 2012 window is now closed; thanks for playing.)
lonewolf wrote:Bad News#2: Well head price of crude oil has dropped from $147/bbl to $70/bbl.
And why is this bad news?
Well, bad news for me: My income is down over 50%. While I may save $40-$50 month at the retail gasoline pump, I lose many thousands in income. Income that is derived from investing at $150/bbl expenses and operating costs which must be recovered from $70/bbl oil.
Actually, "cheap" oil is not necessarily good for even those outside the oil industry. It is all one big domino game. Massive layoffs in the oilbiz will affect jobs and spending in other facets of the economy. Reduction in capital spending will result in less production and less taxes at both corporate and individual level.
It is short sighted to groan over "obscene" profits in the oil industry when they are actually far less than the ROI in many other industries. Most people outside the industry have no comprehension of the humongous amount of capital required to acquire leases, perform exploratory surveys, conduct seismic, drill wells (of which are 90% wildcats are dry holes) and develop production and transportation facillities. The fact that Company X made $ Y profit is meaningless and irrelevant.
And, BTW, chances are part of your managed 401 K is invested in oil.
I could go on but suffice it to say, I took little solace at filling up a $2.17/gallon this morning
lonewolf wrote:It is short sighted to groan over "obscene" profits in the oil industry when they are actually far less than the ROI in many other industries. Most people outside the industry have no comprehension of the humongous amount of capital required to acquire leases, perform exploratory surveys, conduct seismic, drill wells (of which are 90% wildcats are dry holes) and develop production and transportation facillities. The fact that Company X made $ Y profit is meaningless and irrelevant.
lonewolf wrote:Well, admittedly a self-employed oil company shill. Still the truth.
You are our very favorite "Fat Cat"!
Not that you're either overwight or feline, of course.....
Make that "Ex-Slightly Over Optimim Weight Cat"
I just wanna be able to say at a cocktail party without lying that," Oh yes i was just e-mailing one of my friends in oil about this whole petrolem business in terms of the effect on stock dividens and what not."
Sorry about your drop Mr. Wolf but i have hunch the prices might possible go up just a tad in the near future. Feel free to P.M with any questions you might have.
jazzcyclist wrote:I have a couple of early 60's co-workers who were planning on retiring at the end of the year, but their plans have now been indefinitely postponed.
I've spoken to several people in the same situation. It seems to be a common thing, which is understandable given the fact that most people who are approaching retirement are planning to have a certain level of post-retirement income, and to the extent that level depends on the size of their retirement savings, they're now in trouble if they've followed the common advice to keep a good percentage of those savings in equities.
I opened mine and was shocked it wasnt lower, down about 12% but the next one could be far worse i suppose. I probably will never be able to retire so does it really matter? Just give me some honest work till i drop and i'm good. I do believe that distance running has help me in so many ways in the work place.
SQUACKEE wrote:I opened mine and was shocked it wasnt lower, down about 12% but the next one could be far worse i suppose.
Most statements come on a quarterly basis. Things were down by the end of September, but have gotten seriously worse since then. Nobody knows what lies ahead. It's been a roller coaster and is likely to continue to be in the short term. All we can do is hang on for the ride.
