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Old 07-30-2013, 10:40 AM
 
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The price of gas is expected to drop to as low as 2.50 a gallon this fall while the Arabs have been dumping oil onto the world market. Wouldn't this work to cause a slowdown in Houston's energy based economy?
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Old 07-30-2013, 11:18 AM
 
Location: Breckenridge
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Was this a chain email?
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Old 07-30-2013, 11:19 AM
 
Location: Beautiful Northwest Houston
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Thumbs up It is OK !

Quote:
Originally Posted by binkyman View Post
The price of gas is expected to drop to as low as 2.50 a gallon this fall while the Arabs have been dumping oil onto the world market. Wouldn't this work to cause a slowdown in Houston's energy based economy?
No, energy demand worldwide will take out the slack. Plus it is a misnomer that high gas/oil process are good for the oil & gas industry. High oil prices can create demand destruction with people cutting back on driving and other energy consumption. $2.50 gas will actually be good, for it will stimulate demand. Also remember that savings will also be good for consumers in Houston and Texas as well ,giving them more discretionary income. As long as oil stays over $40 a barrel things will be fine for Houston and Texas in general.
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Old 07-30-2013, 11:24 AM
 
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Originally Posted by Schumacher713 View Post
Was this a chain email?
The claim is that the price of oil will drop to 2.50 a barrel. And, well, the Arabs are dumping oil onto the world market. So, no this is not a chain email.
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Old 07-30-2013, 11:25 AM
 
Location: Breckenridge
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The Arabs are not dumping oil and they never will. They sometimes help when there is a hard crunch. Exploration with oil is at an all time high. The new natty gas fields found. Houston is going to boom and won't stop for a long time. As for gas prices to 2.50. I don't ever see that happening again. Those times are gone my friend. I doubt oil will ever slip below 90 a barrel. So, not sure where you got that news, but it is simply not true. It is extremely far fetched.
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Old 07-30-2013, 11:31 AM
 
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Originally Posted by Jack Lance View Post
No, energy demand worldwide will take out the slack. Plus it is a misnomer that high gas/oil process are good for the oil & gas industry. High oil prices can create demand destruction with people cutting back on driving and other energy consumption. $2.50 gas will actually be good, for it will stimulate demand. Also remember that savings will also be good for consumers in Houston and Texas as well ,giving them more discretionary income. As long as oil stays over $40 a barrel things will be fine for Houston and Texas in general.
This optimism seems very similar to that during the mid eighties right before the oil depression hit Houston and the state of Texas. I did not say a recession or a depression, but a slow down. If the falling of the price of gas helps other industries in the world other than that of oil and gas, then, it is easy to surmise, as Houston is by and large a one industry town, it should go through a slow down.
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Old 07-30-2013, 11:36 AM
 
Location: Beautiful Northwest Houston
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Originally Posted by binkyman View Post
This optimism seems very similar to that during the mid eighties right before the oil depression hit Houston and the state of Texas. I did not say a recession or a depression, but a slow down. If the falling of the price of gas helps other industries in the world other than that of oil and gas, then, it is easy to surmise, as Houston is by and large a one industry town, it should go through a slow down.
Binky you can fantasize about hard times for Houston all you want. remember we just went through the "Great Recession" about 4 years ago and Houston did pretty good through that. I have every confidence that Houston will do fine in the future.
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Old 07-30-2013, 11:41 AM
 
Location: Breckenridge
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Quote:
Originally Posted by binkyman View Post
This optimism seems very similar to that during the mid eighties right before the oil depression hit Houston and the state of Texas. I did not say a recession or a depression, but a slow down. If the falling of the price of gas helps other industries in the world other than that of oil and gas, then, it is easy to surmise, as Houston is by and large a one industry town, it should go through a slow down.
The problem with this argument is the forecast for oil is to rise not fall. No one ever thinks it will go down. There is no reason for it to go down. The last thing OPEC will do is discount their oil. This is just not going to happen. You should also be talking about oil prices and not gas prices.
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Old 07-30-2013, 11:44 AM
 
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Originally Posted by Jack Lance View Post
As long as oil stays over $40 a barrel things will be fine for Houston and Texas in general.
That's what I tell everybody
but we all know that the media only makes money when they keep people in fear
"Uhhhh my God, the price of oil went down $5!!!"

My company already went through a slow down and is on the upswing
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Old 07-30-2013, 11:59 AM
 
34,648 posts, read 17,931,534 times
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Quote:
Originally Posted by binkyman View Post
The claim is that the price of oil will drop to 2.50 a barrel. And, well, the Arabs are dumping oil onto the world market. So, no this is not a chain email.
If you trained monkeys to drill and run the wells for two bananas a day, you'd still lose your arse at $2,50 per barrel.
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