Quote:
Originally Posted by marty f
I thought about that , isnt that some sh it, the only ones that this dosent effect are the ones sucking the system dry, the same ones that dont pay pay into the system, are getting a pay raise via the gas pump! I need to step away from this tangent..... nothing gets me boiling more.
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Beginning of the END!
Going to be even less productive, tax paying, citizens than there are now. When the layoffs come and the system will be ligitamtiely needed by individuals who actually want to go to work but cant find a job there wont be enough resources to assist them.
I agree with most posts on this thread (even W's), but I do not agree that the mom and pop companies who did not save their earnings properly are the only companies that will suffer. Sure a lot of money is blown by O&G compqnies during the good times but im not sure that would helpnin this situation.
These smaller companies are heavily leveraged, and their investors want to see a profit. If they approach their investors at the end of a quarter and show them red numbers without having made aggressive cutbacks (layoffs) then the CEO is replaced along with many regional managers under him.
It pisses me off too that for the last 5 years I have worked for my employer we have operated in the green and the minute we get close to the red something drastic must be done but thats just the way businesses are run.
Bottom line is Saudi Arabia holds the cards here and they are methodically cutting the price of oil in a very deliberate way to shake out the smaller companies who have been producing from the shale plays in NAM. Until Saudi Arabia is satisfied with the number of rigs that have been stacked and number of companies who have folded in NAM, AND all of the excess oil that is currently flooding the market with no buyer has been burned off, then the price of oil will begin to increase back to a level that other countries besides Saudi can make a profit on. Other than that scenario I am not sure that anyone else in the world knows of another solution.