$25/barrel oil, Gulf Oil CEO says $1/gal @ Pump

[Fozzy]

They need to be careful or else they could send themselves back to the stone age.

I didn't know they ever left the stone age.

 

[acarpe3448]

$25 barrel oil means that RJs will be cost competitive again. Cheap oil = less jobs at the majors.

Cheap Oil + Comair Out of Business = A great Year

 

[COOPERVANE]

I'm going to fill my pool with 10000 gal of gas at $1.00/Gal.........a Plastic solar blanket and I'm in business.......Yeah it HAS to work

 

[Tarzan]

Opec won't stand for this. They are pissed that it is not at 75bbl. They are having a meeting in a week or so to discus a third massive reduction in production. Some experts have said a cut of 3 million bbls a day will drive that price up. Funny thing is most of the OPEC countries can't cut production that much because of government budgeting. It's BS we have to deal with a cartel to run our country. Any new drilling or increased productions from non-opec countries will do nothing b/c opec will just cut that same amount. Look at the histroy, they have been doing that for some time.

It is great filling up my car for $25 again!

One thing you have to understand about OPEC is that they need to money from the oil. They talk big when faced with cameras or in the presence of their other cartel members. However, if one thinks back to when the prices started their slide, OPEC announced a 1.5M barrel cut, prices slide the next day by a considerable amount. Point is, OPEC members cheat. They will produce oil because they need to revenue. As you pointed out, these countries hav e enacted programs that require these prices but they can't cut because they need to all the money they can realize here.

We missed the boat on the American companies exploring for more oil. Canada has scaled back their sand oil production. All these have been shelved because the high costs will not be repaid because oil has fallen so much.

In the end, I don't believe we will see $25 a barrel. $35 is not out of the question. We will see a gallon of gas bottoming out around $1.25. On another note, remember all the doom and gloomers saying we will never see this again?

 

[flyboyzz1]

I agree with you. I do think that this decrease in oil is temporary and is directly linked to the economy. As soon as that goes up so will our oil.

 

[Speedtape]

I agree with you. I do think that this decrease in oil is temporary and is directly linked to the economy. As soon as that goes up so will our oil.

It will take a very long time before the economy recovers to recent levels. In fact, things are going to get alot worse in the next year, before it bottoms out and starts to recover. There will be many more business failures and probably will include one or more airlines--maybe, UAL and Airtran? There will be no good news for a long time. We will all be hurting!

 

[SpauldingSmails]

Just wait for all the money flying off the printing presses to filter into the economy... there will be a ton of dollars chasing same amount of product, and inflation will kick in here eventually.

 

[buxflyr]

It will take a very long time before the economy recovers to recent levels. In fact, things are going to get alot worse in the next year, before it bottoms out and starts to recover. There will be many more business failures and probably will include one or more airlines--maybe, UAL and Airtran? There will be no good news for a long time. We will all be hurting!

Probably not Airtran. They were just reported to expect a profit in '09.

BUT...The airlines are never going to be a sure shot as a whole unless we go back to regulation.

 

[cybourg10]

A lot of airlines were expected to make a profit in 08 FWIW.

 

[WWEfan]

....and Delta has 69% of its fuel hedged at ~$90/barrell through March 09. Doh!

 

[Way2Broke]

Probably not Airtran. They were just reported to expect a profit in '09.

BUT...The airlines are never going to be a sure shot as a whole unless we go back to regulation.

Full Deregulation is not the answer. I think Crandall has something right here.

http://startelegram.typepad.com/sky_talk/2008/06/crandall-airlin.html

 

[Jack Mehoff]

Cheap Oil + Comair Out of Business = A great Year

You sir are an a$$