Crude Oil and how it affects and benefits consumers. - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
Reply
 
LinkBack Thread Tools
post #1 of 33 (permalink) Old 05-21-2008, 07:37 PM Thread Starter
F1 Driver
 
Join Date: Aug 2007
Location: fort smith, ar
Posts: 4,003
Crude Oil and how it affects and benefits consumers.

We all know the big talk in our economy is the soaring gas prices, weak dollar, inflation, rising food costs, and the infamous stimulus check!

I know many forum members have decided to invest their stimulus checks into paying down credit card debt, which, in turn doesn't really "stimulate" the economy. This in turn will slowly continue to make the dollar weaker, the Euro stronger, and China more attracted to buying our oil. Analysts see the oil at $150/barrel by the end of the summer. I see that as being very feasible, however I'm gonna raise some different questions that I'm sure moser or fatabbot can answer for me.

What will happen to airlines with the raising oil prices? American Airlines is already starting to charge $15 for the first bag check. I flew for the first time in August and I had my bagged checked and had my shampoo and another item thrown away. My g/f was embarrassed because she thought I heard about not being able to take liquids on a plane. With this question does that mean that they will check backpacks and purses and charge you a $15 fee? If so then that's basically extra revenue for the airline company to make money, because they have to check these bags anyways.

The gas prices are affecting my girlfriend and I when it comes to planning a trip together this summer. They're not affecting her as much, because she's flying from Fayetteville, AR to LA in two weeks for $212 round trip. We could barely fly to Vegas for that last year out of Tulsa, OK. She ultimately got a good deal and jumped on it. We chose to drive my car to Myrtle Beach this summer instead of flying, because to fly and rent a car would cost us about $500 each. I can drive my car for much less money and deal with the long road trip. Airlines are really in a sticky situation, because they have potential of losing money no matter what decision they make. The oil price is expected to continue rising through August, and there's potential people will decide not to fly and travel shorter distances by car. Either way they look at it they could be in potential danger.

Another question I have is what is going to happen to auto manufacturers. I already read today that Ford is going to cutback production of SUV's. The upside and downside of this is less babies being born. Who wants to take a vacation with a family of 5-6 in a Toyota Prius. What sucks for Ford, Chevy, and GMC is that trucks and SUV's have been their strong points, while Toyota, Honda, Hyundai, and Kia have been making a killing with economy cars. This will force Ford, GMC, and Chevy to make better cars for the consumer, and not just good enough cars for rental companies. One thing I hardly ever see on the roads is a rental Civic or Camry, however I will always see a Chevy Cobalt, Ford Taurus, Ford Focus, or Chevy Malibu. I know a family that is on their 2nd Taurus and they love the car, because they drive a lot and aren't into leather and the many other amenities, but that alone won't sell that car. The resale of the Taurus is also definitely and eye sore. The Taurus is a nice car for racking up the miles, but that's about all it has for desire.

I personally somewhat support the price of oil going up, because it forces us to look at other alternative energy sources; however, I see it really hurting the economy. When you're living on your own making $8/hour and half your hourly wage goes to a gallon of gas is a little exhorbent. I only make $10/hour and 40% of my wages can potentially go to fuel. The one good thing I've seen from higher fuel prices is that fast food companies are really pushing cheaper foods on the menu. Taco Bell now has a $.79, $.89, and $.99 menu. The items on it are actually good items and not just junk.

Overall crude oil per barrel is high, but I've learned to cut things out to easily make ends meet. However, the only way these prices will go down is stimulus checks need to "stimulate the economy" and we need to drive less as a nation. These two things combined could at least slow the process of crude oil increasing, and the dollar could also gain some much needed strength. The Euro is eating our lunch, and China buys all our oil, because our dollar is weak atm. Sorry, but this whole rant was brought on buy the 426 point drop of the DOW in two days.




LMFAO "oh i thought i didn't need that" i bet in your head you were like "go kick your mom in the ass for me when you get home " 08mazda2.0
weezerfan84 is offline  
Sponsored Links
Advertisement
 
post #2 of 33 (permalink) Old 05-21-2008, 07:40 PM
Senior Member
 
Alec trevelyan's Avatar
 
Join Date: Jun 2007
Location: Warwick, RI
Posts: 38,019
Re: Crude Oil and how it affects and benefits consumers.

$150 by the end of the summer? The way things are going, I'd say that's a rather conservative estimate!


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Alec trevelyan is offline  
post #3 of 33 (permalink) Old 05-21-2008, 07:53 PM Thread Starter
F1 Driver
 
Join Date: Aug 2007
Location: fort smith, ar
Posts: 4,003
Re: Crude Oil and how it affects and benefits consumers.

That's analyst prediction. A more futuristic figure is $200/barrel in 12-20 months. Oil can start to tick down again, but with inflation and unemployment that doesn't stand a chance. Oil has shot up over $12/barrel in a week. I was excited to see it at $122/barrel last week thinking it was gonna tick down to about $121.50/barrel and hold for a day or two. Well I was very very very wrong on that prediction. All the glee I had for the dollar improving with the stimulus checks and the economy starting to move up again was shot out the window yesterday. I also realize that oil is predicted to go up by I was looking at it as a more gradual slow climb. Not $12/barrel in 7 days. I about shit my pants this week to see it jump $2-4 at a time. That's scary when you're holding a stock that works off the Nasdaq that roughly lost $.86/share in two days. This isn't much when you're holding Google or Apple, but I was holding Clearwire and I lost a weeks worth the gains in two days. Shit, the market didn't even bring over vaseline to be nice. I felt like the guy from Seattle that got his colon perforated by a horse! Now I have to go back to the drawing board and wait for the dust settles again to move forward.

LMFAO "oh i thought i didn't need that" i bet in your head you were like "go kick your mom in the ass for me when you get home " 08mazda2.0
weezerfan84 is offline  
post #4 of 33 (permalink) Old 05-21-2008, 08:00 PM
Senior Member
 
Alec trevelyan's Avatar
 
Join Date: Jun 2007
Location: Warwick, RI
Posts: 38,019
Re: Crude Oil and how it affects and benefits consumers.

Sorry, I had credit card bills to pay too, so it's all my fault


To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Alec trevelyan is offline  
post #5 of 33 (permalink) Old 05-21-2008, 08:12 PM
Le Mans: Prototype Class
 
Join Date: Mar 2007
Location: Las vegas NV
Posts: 1,250
Re: Crude Oil and how it affects and benefits consumers.

lol the taco bell menu. fuck them. the price of stuff went UP like the bean burrito. it was 79 now its 99 cents

[quote author=diablospeed link=topic=97635.msg1931978#msg1931978 date=1198074710]
...you do need it... tacos was just being tacos.
[/quote]
tacos is offline  
post #6 of 33 (permalink) Old 05-21-2008, 08:21 PM
Le Mans: Prototype Class
 
Join Date: Jun 2004
Location: Downers Grove, IL
Posts: 1,047
Send a message via AIM to Mummyman
Re: Crude Oil and how it affects and benefits consumers.

1. Airlines are not going to charge you for checking your bags for security purposes. They will now charge you for checking bags, and they have every right to do so. I see plenty of people who bring 2-3 suitcases for themselves alone. I've always gotten by fine by a carry-on, so charge away.

2. Best to not even bother bringing liquids on a trip, just buy them when you arrive. I couldn't bring a sealed bottle of Dasani water past security, but once past security (O'hare), I could buy a sealed bottle of Dasani water for $4.00

3. Ford is cutting back SUV production so that means "less babies being born". Retarded beyond belief.

4. Ford, Chevy, and GMC make decent cars. Toyota/Honda have fallen in quality because they aren't built in Japan like they were in the 80's. We can argue consumer reviews, recalls, etc all day, but to name all those brands (Ford, Chevy, GMC) as good enough for just rentals is short sighted, but that's up to debate.

5. Taco Bell value menu is the shit.

6. China is not buying "our" oil, they are buying market oil.

7. I don't feel bad at all for any consumer in this country. In the late 90's is was fashionable to drive the SUV and be a "soccer mom". People act like it's a god given right to drive on cheap fuel. Now that fuel is "expensive", the governments great plan is to tax the profits of oil companies and to sue OPEC.
What will "windfall taxes" do for me and you? Nothing. The oil companies pay more money to D.C., and the politicans spend it on complete waste. Similar to immigration, hey you can become legal. Just pay a "fee" and you are in! Every idea has people and corporations giving more $$$ to the government. That will never change, I don't care what Obama tells you.

2004 Sunlight Silver 3i
Mummyman is offline  
post #7 of 33 (permalink) Old 05-21-2008, 08:34 PM Thread Starter
F1 Driver
 
Join Date: Aug 2007
Location: fort smith, ar
Posts: 4,003
Re: Crude Oil and how it affects and benefits consumers.

My statement of cutting back SUV sales could easily mean cutting back babies being born. I'm not saying it's retarded at all. No different then saying gas prices are going up so I'm going to drive less, or drive less aggressive. I know that thought is really out there, but this is how analyst think. You analyze how one thing can affect a situation in different ways. For example my girlfriend came from a family of 5 girls. Once her dad passed last year her mom had to drive the ugly prius that her husband bought. Now she drives that prius everywhere and leaves the big ass SUV in the garage. She used to drive the Expedition everywhere by herself and now she drives the Prius everywhere. My accusation of less babies being born could be foolish, but it is a thought. I know if gas prices consistently kept going up I would think about reconsidering how many kids I wanted to have too, because high gas prices affect us in many different ways.

LMFAO "oh i thought i didn't need that" i bet in your head you were like "go kick your mom in the ass for me when you get home " 08mazda2.0
weezerfan84 is offline  
post #8 of 33 (permalink) Old 05-22-2008, 08:11 AM
Senior Member
 
Join Date: Aug 2005
Location: Ellicott City, MD
Posts: 9,451
Re: Crude Oil and how it affects and benefits consumers.

[quote author=weezerfan84 link=topic=112490.msg2332728#msg2332728 date=1211416471]
My statement of cutting back SUV sales could easily mean cutting back babies being born. I'm not saying it's retarded at all. No different then saying gas prices are going up so I'm going to drive less, or drive less aggressive. I know that thought is really out there, but this is how analyst think. You analyze how one thing can affect a situation in different ways. For example my girlfriend came from a family of 5 girls. Once her dad passed last year her mom had to drive the ugly prius that her husband bought. Now she drives that prius everywhere and leaves the big ass SUV in the garage. She used to drive the Expedition everywhere by herself and now she drives the Prius everywhere. My accusation of less babies being born could be foolish, but it is a thought. I know if gas prices consistently kept going up I would think about reconsidering how many kids I wanted to have too, because high gas prices affect us in many different ways.
[/quote]

That is probably a good thing. More people around the more resources being used. There are already to many people in the US and the world with huge familys who can't support them. Most people I see driving SUVs are just driving themselves around. In fact I would bet a very large sum of money 90% of the driving done of large SUVs there is only a single occupant. Extrodinarily wasteful. Think how much your GF mom is savings by just driving the prius instead of the expedition...probably about $3,000 a year in gas and probably upwards of 700-800 gallons of gas if she is driving 12k miles a year.

People shouldn't have large familys just to have a large family. First off you should actually want that many children and be willing and able to love them (and be able to dovote the time and energy required to raise them). Next up they need to be able to SUPPORT them. If that means having a smaller family because they can't afford to raise 4 kids so they have to have 3, then so be it. I don't think that is a crime at all. I know damn well my wife and I could not afford to raise 4 kids and put them through college, even with the help that the 'grand parents' are giving in respects to college for them. 3 kids would be a bit iffy, but maybe doable, 2 shouldn't be a major problem. I want to raise my kids to enjoy at least the standard of living that my parents and my wife's parents managed for us.

I've gotta say it is people like your GF mom who drive an outsized vehicle everywhere that is part of the problem in this country. Its called conspicuous consumption. We as Americans for way to long (since about 1946) seem to have felt like it has been our God given right and duty to be as wasteful as possible. We've got the money so why not spend it we say. How about using up resources that we can't replenish or are difficult to. We have an issue in this country when one of the most important things to us is how big is my house, my car or my TV. And for the majority of the Americans that is still what they care about.

I can't tell you how many people I see who would benifit by having multiple vehicles. Is that consumption...sure it is, but not necessarily that bad. If they kept their F350 or Navigator parked at home and just drove it for family outtings, or when they needed to haul stuff, or when they want to go out on the town and 'look spiffy' and then had a nice 4-10 year old fairly fuel efficient car for their commute to work I bet they would save well over $2,000 a year even when you take into account the extra insurance and maitenance of an extra vehicle. If you figure a life span of 8 years of that commuter car you could easily afford anything less then about $16,000 for the car and still be saving money. How about a 4 year old 50,000 mile compact car...I bet you could get one fairly loaded in good condition for $10k or under. Crap a 6 year loan on the car would still be saving money every month in the smaller amount of gas you would be using. Oh and an additional perk, your overall insurance might be lower if your used sedan is your primary driver and your big pickup or SUV is not.

We are SPOILED in the US. Even with gas prices now we are spoiled. What do you think they are like most places in Europe? Most places the gas prices are STILL nearly double what they are in the US. Cost of living is significantly higher as well.
-Matt
azazel1024 is offline  
post #9 of 33 (permalink) Old 05-22-2008, 08:12 AM
Senior Member
 
Join Date: Aug 2005
Location: Ellicott City, MD
Posts: 9,451
Re: Crude Oil and how it affects and benefits consumers.

Oh and PS the massive amount of debt that Americans so absolutely love is part of the reason why the US dollar is weak against other currencies (of course the fed rate being pitiful is another big reason why). So paying down your debt is useful, especially for the person who now has less of it.
-Matt
azazel1024 is offline  
post #10 of 33 (permalink) Old 05-22-2008, 08:44 AM
Le Mans: Prototype Class
 
Join Date: Nov 2007
Location: South Jersey
Posts: 1,464
Re: Crude Oil and how it affects and benefits consumers.

Maybe if we pull out of Iraq that would bring some relief?


What is the deal with that newly discovered "possible" oil field they found. I forget where, but wasn't it recent.

I mean no hard feelings for what I post on this website. Anything I type/write/post/say on this forum is only that of general debate and discussion. I am not biased toward anyone or anything. I am neutral in everything I do on this website. Only those facts that are presented to me sway my thought process and siding of each discussion topic that I post about.
KeepJeepin is offline  
Sponsored Links
Advertisement
 
Reply

  FMVperformance.com : The site for all your Ford Mazda and Volvo needs > Misc > Lounge

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the FMVperformance.com : The site for all your Ford Mazda and Volvo needs forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome