While these low gas prices as a result of sub 55 and now sub 50 dollars a barrel cude oil are great for filling our trucks, cars, bikes and what every, its bad for many Americans.
The SD job boom is going bust, as are the companies. There are masive layoffs. Halliburton has laid off over 1000 people in 30 days. Serveral off shore drilling companies have laid off hundereds. All the major Oil companies have cut capital expendatures 25% or more for 15. That is construction jobs, that is manufacturing, rig building and so on. 20% o our econimic recovery or more depending on what you read was do to the expansion and growth of oil and gas, now its shrinking fast.
I just got a 10K cut in my retirement contribution from my emplyoer, why because with these prices, the drilling company lost money. We have laid people off, and I force pay cuts very soon.
I see the American drilling compines, the smaller ones going out of business as it costs more than 50 a barrel to drill in the USA. Its 70 to 75 for break even, and closer to 85 in SC fracking. Saudi saw we were set to produce more oil than they do, so they are flooding the market to drive the price down. Once we in the USA contract our drilling capabilitys and production, they will reduce their output and drive price back up.