Economy

BigRedBuster said:
I may have had a little too much to drink last night with friends.  A sausage biscuit with egg and cheese and hashbrowns sounds really good right now.
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Gimme two bacon & cheese biscuits, an egg McMuffin, a hashbrown, & large black coffee and I am set. My go to road trip order.

Despite this order I am not 300 lbs 

 
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teachercd said:
It is super true.  

In one of my classes I teach we talk about it all the time.  I have a lot of students that are super into "living wage" and workers rights and that is awesome.  Then I always go "Hey, how many of you make sure you order the cheapest ____________________ when you are on Amazon instead of the most expensive ___________________" and they all raise their hands and laugh about how they talk a good game but in the end, it is about the best deal they can get.  

One student was showing off her knew shoes and she goes "I know, I know, a bunch of little kids got paid 50 cents a day to make these but I LOVE the color" 
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That is precisely why I am against the education of our youth in this country. They should be working in the mines & factories. 12 hour days 5 bucks an hour for our cheap crap! 

 
Decked said:
That is precisely why I am against the education of our youth in this country. They should be working in the mines & factories. 12 hour days 5 bucks an hour for our cheap crap! 
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12 hours?  What kind of freeloading crap is that!

They can work from 6am until 8pm or until they make me some new hoodies and golf shorts. 

 
Archy1221 said:
Any idea on this? 
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Well, first of all, the sharp increase in prices from 2020 to 2022 are in large part due to the 2020 OPEC agreement Trump gave us.  He made them slash production and agree to not increase production for two years.  Then, during COVID, many oil wells were shut down and capped.  Drilling rigs were shut down.  The lack of global production coming out of COVID sharply increased the price because the supply wasn't there.





Production is high and demand is softening.  We now have oil priced in the 50s which is almost at break even for the oil companies.  Funny thing is, gas prices should actually be lower.  But, convenience stores are keeping the price higher to make up for lost sales in the store.

https://www.pymnts.com/economy/2025/consumer-snack-caution-leaves-convenience-stores-in-a-lurch/

Now...what's your reasoning?

 
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40 minutes ago, BigRedBuster said:

Well, first of all, the sharp increase in prices from 2020 to 2022 are in large part due to the 2020 OPEC agreement Trump gave us.  He made them slash production and agree to not increase production for two years.  Then, during COVID, many oil wells were shut down and capped.  Drilling rigs were shut down.  The lack of global production coming out of COVID sharply increased the price because the supply wasn't there.

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Seems like he would know better than I.  Couple questions though….

In a mostly free market, in general what happens when demand outpaces supply production?

what does he mean when he says Oil Companies will be increasing production by mergers and not investing in new wells?  I’m naive to the process of this so how does buying an existing oil company automatically produce more oil?   Does the pump get more efficient and pump more when it changes names?  
 

He says gas prices will basically be what we saw in 2024, but they are actually about 15% cheaper AND you said gas stations are keeping the price higher than the market says it should be.   Why the discrepancy in his prediction? 

 
Archy1221 said:
Seems like he would know better than I.  Couple questions though….

In a mostly free market, in general what happens when demand outpaces supply production?

what does he mean when he says Oil Companies will be increasing production by mergers and not investing in new wells?  I’m naive to the process of this so how does buying an existing oil company automatically produce more oil?   Does the pump get more efficient and pump more when it changes names?  
 

He says gas prices will basically be what we saw in 2024, but they are actually about 15% cheaper AND you said gas stations are keeping the price higher than the market says it should be.   Why the discrepancy in his prediction? 
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I hope to get back to you tomorrow when I have time. 

 
Archy1221 said:
In a mostly free market, in general what happens when demand outpaces supply production?
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I think you know the answer to this.  When demand outpaces supply, prices go up.

Archy1221 said:
what does he mean when he says Oil Companies will be increasing production by mergers and not investing in new wells?  I’m naive to the process of this so how does buying an existing oil company automatically produce more oil?   Does the pump get more efficient and pump more when it changes names?  
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Companies will increase their own production by purchasing other companies.  This increases their bottom line, but doesn't increase overall global production.

 
BigRedBuster said:
I think you know the answer to this.  When demand outpaces supply, prices go up
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Well that’s what I thought too, however your sources video said in 2025 gas demand is going to outpace gas supply and yet prices are going down from last year.  
 

BigRedBuster said:
Companies will increase their own production by purchasing other companies.  This increases their bottom line, but doesn't increase overall global production
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But he also said US producers will increase supply by 150,000 barrels a day.  I wonder if he is speaking about US producers buying overseas companies because of a US producer buys another US producer then that volume just transitions from one company to another.  Unless additional wells are drilled or uncapped (which would technically be opening new wells) it’s just trading volume between companies overall and not increasing production.    He was a bit confusing with his YouTube video and the graphs he showed to try and make his points kept changing too fast and recycling over and over no matter what he spoke about 

I think he could try and be a bit more clear on what he is talking about for my taste.   Plus he predicted $3.50 avg gas for April and May which we are no where near at the moment.  Just my two cents. 

 
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