Oil companies have no fear it seems

[HuntForHorns]

I call bs on increased demand. I’m already seeing a huge difference in travel where I live not to mention in the stores. I’ve watched gas go up $.50-$.60 per gallon this week and one place I watched it go at $.50 today alone. I was on the lake earlier today and it was dead out there. There’s not more people getting on the road when gas is 4.50 a gallon and diesel is over five dollars

You are thinking inside your little box. The increased demand in the US is from exports to countries that were supplied by Russia.

I think the biggest misconception people have about oil companies is that they make their money selling gasoline and diesel to the end users on the street.

Oil companies make a majority of their profits from exploration/drilling and refining margins.

While the marketing arm is set up to make money, it is mostly used to help move product so they can refine more.

[Colorado87]

Oil companies don’t set prices. Also because we are a capitalist country (at least somewhat) the market is not dependent on just US demand but world demand. With the Russia situation and China loosening restrictions the world market is under supplied and getting worse. Actually what is happening is you are seeing US oil companies displaying their fear. Every major I have talked to is planning slow growth. They are not ramping up to meet the market because the last few times they have done that the subsequent drop has killed them. They are practicing discipline so far. I’m the short term that will be painful. But if they hold to it we will all be better in the long term. Either way look for gas to be at least as high as it is for quite a while.


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[J-5]

100% true. But it still doesn’t mean that’s anywhere close to sustenance wages.

I don’t make half of that, but everything is paid off. I don’t know your living arrangements, but $250 would be life changing for us. But, the way it is, we’re perfectly happy financially, other than all of the inflation issues.


Some may have a lot of blessings they don’t bother counting.

[TN_boy]

$250k year are living paycheck to paycheck

Wow. What about the majority of the population that makes less than $100k a year with combined incomes?

Luckily we just refinanced our house and paid off all debt. With gas prices going up it'll be more cost effective to work at Jack in the Box down the street and ride a bicycle for $12hr than to drive into Austin for a real job.

[Landrover]

Folks are vacationing like crazy. Airports are packed and airlines are cancelling flights due to lack of labor, hotels running at 80 and 90 percent occupancy........already!!! My long term travel agency is NOT accepting any new clients at all. Any domestic vacations they have partnered with another travel agency as they dont have the time to fool with it. In the 1st quarter they have booked $5 million in sales.....that was there total in 2021!!!! Heck, I am hoping it slacks off as crowded beaches, monuments and airports suck......lol!

NO. Those doing good now will be doing good again. Those sucking the govt. teet will continue to suck.

......pretty spot on!

What are they going to do that would have an immediate effect? The only thing would be cutting state and federal tax on fuel. Since when has the govt agreed to do that? Continuation of pipelines and drilling does not happen overnight. The best thing energy companies can do right now is stick it to the govt and prove that their policies are terrible for the economy and Americans.

Voters brains may not vote. But, hopefully their wallets will.

Bingeaux!!!! Odd how governors have not done away with the state tax on fuel to at least "act like" they really care about all of this. It is definitely a global issue that was not started in a vacuum.

You are thinking inside your little box. The increased demand in the US is from exports to countries that were supplied by Russia.

I think the biggest misconception people have about oil companies is that they make their money selling gasoline and diesel to the end users on the street.

Oil companies make a majority of their profits from exploration/drilling and refining margins.

While the marketing arm is set up to make money, it is mostly used to help move product so they can refine more.

Alas.......someone sees the big picture! Fuel at the gas station hurting your ability to go on vacation is the last thing that will move the needle.

[OldRiverRat]

I call bs on increased demand. I’m already seeing a huge difference in travel where I live not to mention in the stores. I’ve watched gas go up $.50-$.60 per gallon this week and one place I watched it go at $.50 today alone. I was on the lake earlier today and it was dead out there. There’s not more people getting on the road when gas is 4.50 a gallon and diesel is over five dollars

It’s not just domestic demand


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[MetalMan2004]

This is especially true for those trying to get their lives going and buying homes and vehicles for the first time. Sure 250k is a lot to those who already have homes at old valuations but it’s really not a lot to get going right now. Housing is just crazy. New families will struggle a lot more than established

I have to wholeheartedly disagree with that. My wife and I saved for two years on a household income of $80k and bought our first house about 10 years ago. Had to finance one vehicle in the past decade but paid it off early. If you can’t figure things out with 3X that income you’re doing something incredibly wrong, even in the current atmosphere.

[Colton]

I have to wholeheartedly disagree with that. My wife and I saved for two years on a household income of $80k and bought our first house about 10 years ago. Had to finance one vehicle in the past decade but paid it off early. If you can’t figure things out with 3X that income you’re doing something incredibly wrong, even in the current atmosphere.

No offense man but you are talking about 10 years ago, the price of housing sky rocketed 2 years ago

Although I do agree that those saying “250 isn’t what it used to be” still make a **** load more than most people.

[trophy8]

I have to wholeheartedly disagree with that. My wife and I saved for two years on a household income of $80k and bought our first house about 10 years ago. Had to finance one vehicle in the past decade but paid it off early. If you can’t figure things out with 3X that income you’re doing something incredibly wrong, even in the current atmosphere.

I’m not hurting by any stretch. And have an established home etc. But you’re crazy if you don’t see this current market hindering folks abilities. My wife and I bought 10-11 years ago as well. Houses have more than doubled in price. Cars and everything else as well. I don’t think he meant folks making 250k are having a hard time getting started. Because most just getting started aren’t making that.

Median home prices of 3-400k and offers going well above ask and appraisal make it near impossible for the vast majority of first time home buyers. Sad state of affairs

[dosrobles]

I don’t make half of that, but everything is paid off. I don’t know your living arrangements, but $250 would be life changing for us. But, the way it is, we’re perfectly happy financially, other than all of the inflation issues.


Some may have a lot of blessings they don’t bother counting.

I think we are saying the same thing. I just didn’t make
My point well. If you’re making 250k and living check to check it’s 100% your own fault.

[Gumbo Man]

I think we are saying the same thing. I just didn’t make
My point well. If you’re making 250k and living check to check it’s 100% your own fault.

Bingo.

[trophy8]

I think we are saying the same thing. I just didn’t make
My point well. If you’re making 250k and living check to check it’s 100% your own fault.

Agreed 1000000%

[brokeno]

F j b

[bphillips]

I have to wholeheartedly disagree with that. My wife and I saved for two years on a household income of $80k and bought our first house about 10 years ago. Had to finance one vehicle in the past decade but paid it off early. If you can’t figure things out with 3X that income you’re doing something incredibly wrong, even in the current atmosphere.

And if you tried to do that now? You would be able to afford half. Same for someone at 250 it goes about half as far. Yea 125k is still good but it’s a completely different lifestyle especially with kids.

Obviously it’s their own fault but for that to change so much in the last 2 years is crazy. That person could have been saving 5k+ per month and now that has disappeared with no changes

[jds247]

I think we are saying the same thing. I just didn’t make
My point well. If you’re making 250k and living check to check it’s 100% your own fault.

I agree it blows my mind someone lives paycheck to paycheck on 250k a year.
I make a little over half that and have all the things to live high on the hog. House is 5 years old and paid for 2020 truck paid for 2018 boat paid for.. etc . Trick Is to buy one thing and pay it off before you buy anything else.. I started doing that at 20 . By 40 I could pretty much pay cash for what I wanted. I usually finance and pay it off early since the interest rates have been so low the past 10 years. It's ok to sit at home and not go out to eat every night until you can afford it..