At $30.00+/barrel most Americans have not had to worry about filling up at the pump lately, compared to one year ago when some parts of the country were paying $4.50/gallon. I guess the public is really taking it to the man these days. But I've got to tell you...I am the man. In all senses of the phrase. Now, I dabbled in pacifism and hippie-ism for about 9 college months but in growing a bit older and wiser I can safely say that we need the man. As Pacino said, "You need people like me!"
The threat of $30.00 oil is upon us. At $30.00/barrel, energy companies can not finance land leases, rig leases, pipe costs and production costs. Truly, oil needs to level out at about $80.00/barrel before we start seeing a significant economic stimulus. On average, global petroleum production is down 25% this year. Russia needs to garner $70.00/barrel to remain solvent and OPEC needs $55.00/barrel. In turn new exploration projects have been postponed for 2 plus years and the Athabaskan tar sands (speculated to place Canada, our best friend, as the largest oil producing country in the world by 2010) has been put on hold until further notice. Due to these recent economic difficulties oilfield workers are being laid-off or let go daily. Not to mention the truckers, welders, and specialty service hands that remain unemployed. Mexico (our number 3 source of imports) is on the road to civil war as the 20% decline in oil production and exportation has left it's burgeoning drug trafficking business as it's number one grossing industry. War and blow flood the streets...Tony Montana would be proud.
I am thankful to be working, whether I am the hated man or not. The supply has met the demand recently, leaving the best of the best out here in the field. Meanwhile, many men sit at home without income. There are workers out here that have not asked for a day off in 6 months fearing they will be perceived as complacent or unappreciative and then they will be replaced. It's a tough world we live in and sometimes I feel ashamed to tell old college friends that I drill for oil and gas, but we live in America. This is capitalism and smoking dope doesn't pay the mortgage-- pipe dope does. It is fantastic to have ideal goals and to work for a greener tomorrow but we must be thankful for the resources we have today. But get ready folks, I foresee an increase in gas prices. Somewhere in the $2.50 to $3.00 range. Try not to loathe it...look at it as economic stimulus. We don't have battery powered vehicles yet. And remember Scarface is the bad guy but I'll be your Huckleberry.
Cheers,
rf
