When thigs are going well for most of us there is always a group that is suffering and these days it is anyone in the oil business that is suffering. Most of America is thrilled that gas prices are under $2 dollars a gallon and in some areas, $1.50 per gallon. Last year falling gas prices put an extra $150 Billion dollars in American’s pockets. The price of oil has dipped below $30 per barrel. It should be all ok and one big boost to the economy but in Midland, Texas they call it the crash. It is a deep economic disaster for them.Oil fields are closing up and oil rigs and drilling equipment stand idle filling up used car lots. America’s oil and gas industry is going through a deep economic depression with a few hundred million dollars’ worth of drilling rigs going idle in West Texas.
It is the flip side of low oil prices and I don’t care. I want to enjoy this side for a change. The United States oil industry is down 60 per cent in production. Auction lots are filled with trucks and heavy equipment being sold for quick cash. People have lost their jobs since a gallon of water cost more than a gallon of gas. World -wide the industry has cut more than 275,000 jobs. In mid-2014 the price of a barrel peaked at $112.00 per barrel. The price fell because OPEC has not cut production. The author Daniel Yergin describes such a change much better in his book called The Prize. The epic quest for Oil, Money and Power.
Then the price crashed due to China’s slowing economy. The Saudi’s and Russians kept pumping because they don’t pay their workers much to work. If Iran starts pumping again even the Saudi’s and Russians will fail. The world is producing more than a million and a half barrels of oil than it needs. The oil is being stored in huge tanks around the world and are sitting in tankers parked at sea. When is the United Nations going to get involved in this issue to stabilize production and prices world-wide? Even if the price does go up it will take time to use the surplus dangerously hanging around in our waters and lands.