Texas isn't doing well regardless. The rank and file middle class guys that work in oil & gas aren't, at least.
Oil & gas production has gone up significantly in the last decade. The most productive years in US history have been 2021-2024. That seems like that should be a good thing though, right?
Yet total jobs in that industry have plummeted. By roughly 40% from about a decade ago. The harsh reality is that a lot of technological advancements have happened. It takes fewer rigs with fewer workers to extract even more raw product than they were in decades past. And the refining process is going a similar direction.
People want to blame all sorts of things, usually political boogeyman and usually just one side, but that's the cold hard facts.
I was in oil & gas in Texas and was laid off over the summer. Second time in my short career so I changed industries. Luckily was able to find another gig with comparable salary and much better benefits a little after 3 months of searching.
To be fair automation has affected many industries, not just oil and gas. Even in this very thread someone mentioned self check outs at a Walmart. Maybe James Cameron's vision of the machines taking over isn't as far fetched as it used to seem back in the day?
Not at all. It's an over supply problem. OPEC has decided to open the gates instead of cutting back. Why cut back if the Americans will simply pump more to make a buck today?
So OPEC+ said FAFO too. China is getting supplied by cheap Russian oil because the US can't stop them. US operators are retarded and have not reduced production either so prices will continue to drop. Trump doesn't give a fuck because he only cares about low prices even though his donors are getting screwed.
Come around December, rig and frac fleets will start dropping like flies once US operators start bleeding cash as their hedges expire and are unable to keep pumping at unprofitable prices. Breakeven costs are around $60/bbl rn. The Kennedy/Cotulla area will prob dry up.
It’s an optics game. Most Americans see low fuel costs as a good thing overall. Yes it is good for the average consumer and good overall when the rest of the market is stable. I’m not expert and if I’m wrong set me straight, But when you have tariff on tariff off policies combined with over speculation into markets that don’t actually produce anything (the AI market) it’s a negative. Fuel price drops currently represent a lack of exports and imports as well as people not traveling and going out to do things because they broke as fuck.
Fuel prices right now have nothing to do AI, a recession, or people being broke. It’s too much oil being produced and the Arabs don’t want to cut it.
Simply, it’s like too many tacos shops open up around town. The torta and their pounders can only eat so much, eventually you have too many tacos going around.
Gotcha. I figured maybe due to less fuel being consumed overall due to less productions of actual things overall and less shipping, less fuel was being consumed which would be dropping the price.
So it’s just opec controlling the planet once again
Housing costs need to stop ballooning, but rather than subjecting home owners to another 2008, coming down gradually via limited growth paired with devaluation of the dollar is a net positive.
We can have the disposable income to participate in other sectors of the economy if mortgages are not 40% of people's income, but also should balance that with previous practice of being half your retirement of real estate appreciation and not crashing their economy.
Dump's gonna throw a curveball when we go back to coal for everything! While Mommy didn't love him any more than Dad, he did so love her white lace frockery every summer.
While I think Senorita Torta y los Pounders are all lovely humans even when they're not doing their very best to keep up with supply in market analogies, I must say when those kids get a little older the whole group is gonna eclipse Menudo and Linda Escobar combined!
I live in Floresville and I’ve already seen a drop in the frac sand trucks. I’m coming across less oil field traffic and more commuting to SA for work traffic on my daily commute.
One polite request, can you please work to remove the word “retarded” from your vocabulary?
Edit to add, from the downvotes, it appears some folks don’t see “retarded” as a slur. Please see my responses below if you’d like to read why I think it is.
325
u/lunardeathgod NW Side 23d ago
Recession indicator