Schwab is projecting $20 to $30 per barrel for 2026. That's not good, I'm all for lower prices but prices need to be between $50 and $60 per barrel to keep the oil companies producing.
Cost of Goods Sold (COGS) drops as cost of fuel (transport and distribution) and interest rates (operating capital cost) drop. Certainly a margin squeeze is coming, but oil is also facing nuclear, natural gas, and coal competition. So margin squeeze is coming regardless and oil companies will drop prices to avoid demand destruction. Sabotage of refineries by Blue State Governors is another separate story.
Cost of development and production of new oil wells and re-activation of older wells also drops with fuel and interest rate drops. Nearly 100% elimination of regulatory restrictions drops rough cost of production by nearly 50% alone (decrease in lawyer and compliance costs), making room for the smaller players who will accept lower margins to play as well. Big guys accept lower margins and maintain revenue or get eaten alive by the unleashed small drillers (and this might be unavoidable anyway as a "natural" long overdue de-consolidation).
In the communist state of Washington it’s twice as high. They passed some green new scam bill a couple years ago that’s causing ever increasing taxes. 😡
Hell yeah baby….i just paid less than 3.00 for premium here in Texas a few days ago.
Not in Pennsylvania, gas tax too high, this Governor can lower them, but, of course, he won’t.
They told us decades ago we were running out of hydrocarbon fuels.
Instead there are more than ever.
Do not call them "fossil fuels".
2.29 in Meridian MS at some stations. 2.49 by the interstate. But they only make 2 cents a gallon! Kek
Sucks for me. Im in one of the 27. But they gave dropped 10 to 15 cents in just the last week
I voted for this.
Schwab is projecting $20 to $30 per barrel for 2026. That's not good, I'm all for lower prices but prices need to be between $50 and $60 per barrel to keep the oil companies producing.
Cost of Goods Sold (COGS) drops as cost of fuel (transport and distribution) and interest rates (operating capital cost) drop. Certainly a margin squeeze is coming, but oil is also facing nuclear, natural gas, and coal competition. So margin squeeze is coming regardless and oil companies will drop prices to avoid demand destruction. Sabotage of refineries by Blue State Governors is another separate story.
Cost of development and production of new oil wells and re-activation of older wells also drops with fuel and interest rate drops. Nearly 100% elimination of regulatory restrictions drops rough cost of production by nearly 50% alone (decrease in lawyer and compliance costs), making room for the smaller players who will accept lower margins to play as well. Big guys accept lower margins and maintain revenue or get eaten alive by the unleashed small drillers (and this might be unavoidable anyway as a "natural" long overdue de-consolidation).
Unfortunately not us poor schmucks here in Newsom Gruesome Cali.
In the communist state of Washington it’s twice as high. They passed some green new scam bill a couple years ago that’s causing ever increasing taxes. 😡
https://x.com/RapidResponse47/status/1979200651012743272