Hey Oilfield Guys!!

[bloodtrailer28]

You seem to have a hard time understanding the difference between "Texas Economy" and "Oil". Oil plays a part in the Texas economy, no doubt but it is not everything. This state builds or grow planes, cars, computers, cattle, crops, etc and all of those rely on the price of oil to set cost. Yes oil plays a part in Texas economy but not as big a part as everyone is making it out to be. Yes the drop in oil prices might crash the Oil Market but it will not crash the Texas Market. One of the great things about this state is that it is so diversified in its economy. The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.

Yes people will be given pink slips. I am in construction and know the industry is looking for good people daily. Many of the guys that left me went to the oil field and I will be happy to take most of them back.

Lets look at the other side of the low oil prices.
Energy cost go down. Texas is the #1 user of energy in the Nation.
Transportation cost go down. Everything from food to fuel are cheaper.
Construction cost go down. Cheaper to build homes, road, etc.
Food cost go down. Cheaper food all around.
Farming and Ranch cost go down. Cheaper feed prices, deer corn, etc.

All of the above save everyone in the state money daily, weekly, and yearly. You are wanting to say that because of a small % hurt by the low oil prices things will go to H3LL in a hand basket. But what you are not accounting for is everyone in the state and country for that matter will gain something at the expense of that small %. I know that sounds bad but it is the truth and the great thing about capitalism.

Don't bring common sense into this debate sir and don't you know oil is the ONLY thing that matters in the great state of Texas

without oil our whole state will shut down and become part of Mexico again

[Skinny]

What's crazy is that for every cent the oil price drops, American Airlines saves $100K on jet fuel.

[oktx]

You seem to have a hard time understanding the difference between "Texas Economy" and "Oil". Oil plays a part in the Texas economy, no doubt but it is not everything. This state builds or grow planes, cars, computers, cattle, crops, etc and all of those rely on the price of oil to set cost. Yes oil plays a part in Texas economy but not as big a part as everyone is making it out to be. Yes the drop in oil prices might crash the Oil Market but it will not crash the Texas Market. One of the great things about this state is that it is so diversified in its economy. The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.

Yes people will be given pink slips. I am in construction and know the industry is looking for good people daily. Many of the guys that left me went to the oil field and I will be happy to take most of them back.

Lets look at the other side of the low oil prices.
Energy cost go down. Texas is the #1 user of energy in the Nation.
Transportation cost go down. Everything from food to fuel are cheaper.Construction cost go down. Cheaper to build homes, road, etc.
Food cost go down. Cheaper food all around.
Farming and Ranch cost go down. Cheaper feed prices, deer corn, etc.

All of the above save everyone in the state money daily, weekly, and yearly. You are wanting to say that because of a small % hurt by the low oil prices things will go to H3LL in a hand basket. But what you are not accounting for is everyone in the state and country for that matter will gain something at the expense of that small %. I know that sounds bad but it is the truth and the great thing about capitalism.

When? I have not seen one thing drop in price but gasoline. I don't think the price of common goods will come down. I really doubt they will pass this savings on to the customer.

[super_dave]

WTI closed at 67 and change today...



I'm afraid 2015 will be a bad year for domestic energy...I hope I'm wrong but we are due for a financial crisis of some type...they occur about every 7 years or so it seems.

Very very true. 1994, 2001, 2008, 2015?

[super_dave]

When? I have not seen one thing drop in price but gasoline. I don't think the price of common goods will come down. I really doubt they will pass this savings on to the customer.

If it ever comes down, it won't be soon!

[M16]

When? I have not seen one thing drop in price but gasoline. I don't think the price of common goods will come down. I really doubt they will pass this savings on to the customer.

This, and when oil goes back up they will raise their prices again!

[kyle1974]

Hey Oilfield Guys!!

You seem to have a hard time understanding the difference between "Texas Economy" and "Oil". Oil plays a part in the Texas economy, no doubt but it is not everything. This state builds or grow planes, cars, computers, cattle, crops, etc and all of those rely on the price of oil to set cost. Yes oil plays a part in Texas economy but not as big a part as everyone is making it out to be. Yes the drop in oil prices might crash the Oil Market but it will not crash the Texas Market. One of the great things about this state is that it is so diversified in its economy. The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.



Yes people will be given pink slips. I am in construction and know the industry is looking for good people daily. Many of the guys that left me went to the oil field and I will be happy to take most of them back.



Lets look at the other side of the low oil prices.

Energy cost go down. Texas is the #1 user of energy in the Nation.

Transportation cost go down. Everything from food to fuel are cheaper.

Construction cost go down. Cheaper to build homes, road, etc.

Food cost go down. Cheaper food all around.

Farming and Ranch cost go down. Cheaper feed prices, deer corn, etc.



All of the above save everyone in the state money daily, weekly, and yearly. You are wanting to say that because of a small % hurt by the low oil prices things will go to H3LL in a hand basket. But what you are not accounting for is everyone in the state and country for that matter will gain something at the expense of that small %. I know that sounds bad but it is the truth and the great thing about capitalism.

Yes, you can pay people $10 an hour to hammer nails that were previously making $25 an hour in the oilfield. That is a tremendous bonus to our economy.

It's ironic that you mention vehicles and construction as the oilfield has pumped billions into both of those industries with its growth.

Whichever way, it's far out of our control. But I would like to revisit this again in a year or so to see all the positive impact from lower oil costs.

[KR-oldmexico]

Very very true. 1994, 2001, 2008, 2015?

Lord I hope you are wrong!!!

[super_dave]

Lord I hope you are wrong!!!

Read the Harbingers



Tell Brian that cutter bo said hi!

[KR-oldmexico]

You seem to have a hard time understanding the difference between "Texas Economy" and "Oil". Oil plays a part in the Texas economy, no doubt but it is not everything. This state builds or grow planes, cars, computers, cattle, crops, etc and all of those rely on the price of oil to set cost. Yes oil plays a part in Texas economy but not as big a part as everyone is making it out to be. Yes the drop in oil prices might crash the Oil Market but it will not crash the Texas Market. One of the great things about this state is that it is so diversified in its economy. The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.

Yes people will be given pink slips. I am in construction and know the industry is looking for good people daily. Many of the guys that left me went to the oil field and I will be happy to take most of them back.

Lets look at the other side of the low oil prices.
Energy cost go down. Texas is the #1 user of energy in the Nation.
Transportation cost go down. Everything from food to fuel are cheaper.
Construction cost go down. Cheaper to build homes, road, etc.
Food cost go down. Cheaper food all around.
Farming and Ranch cost go down. Cheaper feed prices, deer corn, etc.

All of the above save everyone in the state money daily, weekly, and yearly. You are wanting to say that because of a small % hurt by the low oil prices things will go to H3LL in a hand basket. But what you are not accounting for is everyone in the state and country for that matter will gain something at the expense of that small %. I know that sounds bad but it is the truth and the great thing about capitalism.

It would be nice if it was that simple and trickled down as you say!!

Oil/nat gas plays a much bigger part than you give it credit for! Its not the whole Texas economy but its more than the small % you speak of sir!

[Take Dead Aim]

It would be nice if it was that simple and trickled down as you say!!

Oil/nat gas plays a much bigger part than you give it credit for! Its not the whole Texas economy but its more than the small % you speak of sir!

Again it is not that big of a %. Please back up your statement with proof and not just a statement. It will help with the discussion.


I attached a link since I can't get the spacing correct.

http://www.texastransparency.org/State_Finance/Budget_Finance/Reports/Revenue_by_Source/

Tax Collections by Major Tax

from 2012 Revenue in $ % of Total
Sales Tax $25,943,807,086 26.2%
Motor Vehicle Sales Taxes $3,878,379,684 3.9%
Motor Fuels Taxes $3,221,502,038 3.3%
Franchise Tax $4,798,699,188 4.8%
Insurance Taxes $1,764,153,450 1.8%
Natural Gas Production Tax $1,495,202,962 1.5%
Cigarette and Tobacco Tax $1,598,089,091 1.6%
Alcoholic Beverages Taxes $976,893,685 1.0%
Oil Production Tax $2,990,890,113 3.0%
Inheritance Tax ($10,293,450) 0.0
Utility Taxes $434,870,937 0.4%
Hotel Tax $441,131,849 0.4%
Other Taxes $247,719,032 0.3%
Total Taxes $47,781,045,666 48.2%

[Take Dead Aim]

Yes, you can pay people $10 an hour to hammer nails that were previously making $25 an hour in the oilfield. That is a tremendous bonus to our economy.

It's ironic that you mention vehicles and construction as the oilfield has pumped billions into both of those industries with its growth.

Whichever way, it's far out of our control. But I would like to revisit this again in a year or so to see all the positive impact from lower oil costs.

I do not have anyone that swings a hammer. We are a heavy site and utility contractor. Most of my guys make between $15 to $25 per hour. So keep spilling empty words or change and actually provide some useful discussion by having some facts to back up your statement.

[asttbe]

Oil and gas payroll accounts for 20% of the total in the state. That isn't a little bit to me

2011 numbers, and it is a fact

[Sparkles]

^^^ I get what you are trying to say and while oil and natural gas aren't as big of a contributor percentage wise as some people think, the energy sector including oil and natural gas are the biggest contributors to Texas' economy 13% I think I read last, followed by AG and technology
So yeah it's kind of big deal.
Unfortunately while the cost to produce things falls with the cost of oil it is rarely past on to the consumers. Usually because prices aren't low enough long enough and prices of goods would fluctuate greatly to keep up with oil trends.
Now if oil stayed around $80 I think we could all be happy. Goods would start to come down and the roughnecks can keep their jobs.

[asttbe]

More facts, not empty words for you. O&G are huge in Texas if you like it or not

http://www.forbes.com/sites/davidbla...ff-the-charts/

Texas Oil And Gas Numbers Fly Off The Charts
Comment Now Follow Comments

English: Seal of Texas
English: Seal of Texas (Photo credit: Wikipedia)

The growing scale of the oil and natural gas boom in Texas continues to stun most observers. We have discussed this phenomenon periodically (see prior pieces here and here) , but the newest developments are so off the charts that an update is warranted.

We’ve pointed out a couple of times that Texas’s oil production represents roughly 30% of the total US output, an amazing statistic, especially considering that the percentage was below 15% just a few years ago. In May, that statistic became even more amazing, as Texas accounted for 34.5% of total US oil production, thanks to continued production growth in the Eagle Ford Shale and in several shale plays in the Permian Basin region of West Texas.

As Dr. Mark J. Perry points out in his Carpe Diem blog, Texas’ daily oil output has doubled in just a little more than two years, averaging 2.525 million barrels per day in May, the highest daily output the state has experienced since April 1982. In February of this year, Texas – were it a nation in and of itself – would have ranked as the 14th largest oil producing nation on earth. In April – the most recent month global data is available – Texas would have ranked 12th among all nations, in this category, just ahead of Venezuela, and slightly behind Kuwait and Mexico.

By the end of the year, when Texas’s daily production is likely to exceed 3 million barrels per day, Texas would likely rank 9th on this list. Extraordinary.

Where natural gas is concerned, Texas accounted for just over 27% of all US production in May, and would still rank 3rd among all nations in natural gas production, behind Russia and the other 49 US states.

Facilitating all of this production growth is the fact that the latest rig count indicates Texas remains home to 832 drilling rigs, about 47% of all land rigs in the United States, and fully 25% of all the rigs working anywhere in the world. Again, extraordinary.

So now that we’ve got the numbers accounted for, let’s talk about the real-world impact of what this amazing growth means for Texans. One terrific example came to light late last week, when Texas State Comptroller Susan Combs was able to make the happy announcement that state receipts from oil and gas severance taxes had exceeded her projections for the first nine months of Fiscal Year 2013 by a whopping $900 million.

The Comptroller’s announcement came shortly after Texas Governor Rick Perry had called the Texas Legislature back for a 3rd straight special session, with the House and Senate deadlocked on how to produce more funding for maintenance and expansion of state highways. Each house had produced competing bills designed to dedicate excess funds from the state’s Rainy Day Fund in order to accomplish that task.

The good news for Texas is that the Rainy Day Fund is almost entirely funded by oil and gas severance tax collections, and the Comptroller’s announcement that the Fund would be much more flush with money than previously thought provided the impetus necessary to break the impasse. So on Monday, the Legislature was able to reach agreement on a mechanism directing an additional $1.2 billion from the Rainy Day Fund to highway construction and maintenance, and finally, at long last, adjourn the session so that members could return to their homes, families and jobs.

That’s great news in and of itself, but it’s not where this story ends.

During the regular session, the Legislature also passed a series of bills that will also tap surplus funds in the Rainy Day Fund to fund the State Water Plan, as well as other road, port and rail infrastructure projects desperately needed in the state’s rapidly growing economy. The legislation would create two funds:

The State Water Implementation Fund (SWIFT) that will contain $2.5 billion to fund projects in the State Water Plan; and
The State Water Implementation Revenue Fund of Texas (SWIRFT) that will contain $3.5 billion for road, port and rail infrastructure projects.
All told, the legislature was able to tap the almost exponential growth in the Rainy Day Fund for more than $7 billion to pay for a great variety of much-needed infrastructure projects. All of this is subject to voter approval on the November ballot, but success appears likely.

As an aside, The State Water Plan was conceptually approved by the Legislature in 1997, but not funded. For the last 16 years, proponents have tried in vain to devise a source of funding for the plan that does not involve an increase in taxes. As recently as two years ago, no one had the slightest idea how the Water Plan or any of these myriad other infrastructure needs could be paid for.

Today, thanks to the amazing growth in Texas oil and natural gas production since 2011, and the resulting windfall of tax revenues that has produced, the legislature was able to fund all of that, without any sort of tax increase, and still maintain a very healthy balance in the Rainy Day Fund.


The result is a great story that opponents of the oil and natural gas industry hate to hear, but it’s a story that is well worth telling. Good news of this magnitude – like rain, it seems – doesn’t just fall out of the Texas sky on a regular basis.

God Bless Texas.