John Shiels

Goshen from Renault / Nissan declared the US auto industry in recession the other day. NYC is busy in construction but Long Island is in bad shape. First time I remember a split like that since I started in 1970. Many places are hit worse than others. Places like Kanas haven't had housing prices fall like NY or FL but they didn't go up as crazy.

If this continues I see major cut backs in racing budgets from the auto companies in bad shape. They won't be able to justify spending millions on racing. If you watch the Autoline segment I posted in the other thread it is used for more than race on Sunday and sell on Monday like it used to be.

OCCOMSRAZOR

What I do know is:

1. People have VERY short memories.

2. People always believe negative news.

3. The US is NOT currently in a recession by traditional economic measures.

4. The gloom and doom being SCREAMED every day by the news media during an election season scares lots of people into "protection" mode which can create an economic problem and become a self-fulfilling prophecy.

If more people made decisions based on logic and intellect and not their "feelings" the media would have alot less control of the economy.

Personally, I refuse to participate in phony recessions. I will be purchasing at least two homes this summer (at bargain prices) and a 1 ton diesel Silverado to pull the new 24' trailer I just bought, to haul our new track car.

I encourage everyone I know to do the same.

You know, this is still the United States, the land of opportunity, not some third world socialist country where everyone is equally miserable.
(Yet...)

outnumbered

Your land of opportunity is true. Unfortunately when some are suffering, some are capitalizing on the sufferer.

There are many that are just barely making enough business to keep what they have. It's the truth. It's easy to say it's not real when it hasn't hit you.

I am glad you are able to make your purchases. It is what we need to keep the economy moving.

John Shiels

so many areas of sales are in the tank from housing to cars which are a major mover of the economy. It will hit sponsorships and is in NASCAR now as cars sit idle. One major player was close to dropping out of NASCAR last year.

0Randy@DRM

Well some of you are twice my age but I will try to explain how I personally feel on the state of our great country.

First off, we are in the middle of a war. That will affect us for years after the last troop steps off the battle field. We need to come to some sort of agreement over there fast and get home. Think how many good hard working men, women, boys and girls are over there driving around in truck waiting to get shot at. They should be back home, working hard in this global market.

What I have seeing lately, the ford dealership in town is closing up, the dodge dealership is right behide it. But the Chevy guys are selling cars, AVEOs, Vettes, and lots of trucks.

Hard times for a lot of people right now.

Taxes no body likes to pay taxes. It is very hard to pay the amount of taxes as a person. Then put the small business into the equation and it will make you sick.

Why I drive a honda:o Flame suit on. Let see, I drove Chevy trucks my whole 14 years behide the wheel. Gas prices went up, I needed something with better milage to get back and forth to work. So I looked at what chevy had to offer first, well horrible gas mileage on all of them, including the little AVEO. Have you guys seen that thing, peice of crap, and are you really buying a US car anyways. So I looked at the cobalt, nice little car, bad on gas and the thing had rattles even at 50 miles. Thinking back my friends cavilers after 100,000 miles, it made me sick. Then I looked at the mid size cars, big V6's suck too much gas. Every engine package was very strong, tested, refined over the years and etc. One problem they are all the wrong type for my driver. By the way I could care less what I am driving to work and back.
So I looked at what honda had in the barn. Well the gas mileage went up by 25 percent per car size. Interesting. I ended up with a 05 civic 4 door with a auto. The thing got 36 miles to the gallon, at 85 mph with it loaded down with two guys, hunting gear and my dog. And my dad asked why I bought the car. My answer, name one american car that can do that. I raced a mechnics Cobalt and beat it, and get 25 percent more gas mileage.

Did I hurt the USA buying a used car that was built overseas. I don't think so one bit. I buy gas at the same place, about the same amount, but I have traveled further. I have been all over in my car, because I don't worry about the 20 dollar trip to the big city. Because it cost me 6 dollars. I buy brake pads from NAPA, wipers from Advance, oil from Walmart, and tires from the Tire rack, and mounting at Samartian. Honda as a company will make exactly 7 dollars when I buy my timing belt after 90,000 miles.


I'm to the kitchen to prep dinner!!! I'm cooking my best dish

Randy

VinceAD

I ditched my mid size SUV(and gas guzzler) that I used when on the road making sales calls a couple of years ago (I drive about 40k/yr) and bought a 5 year old Buick Century with decent miles from a retired couple. I avg 30 mpg on the road and I paid less than $5 grand for the car. Not as good as your Civic but still very good with almost zero repairs (tie rod ends). It turns out my Father was right about Buicks(he's on his 3rd and drives-em until the wheels fall-off). Here's my thumbs for GM

73-84 IMSA Widebody

Lets see...
Iraq will cost us $2 Trillion or $7000 for every man woman and child in the US, illegals and all. Think about that... if you are a family of 4 pull $28,000 out of your saving right now.

1 in every 100 US adults are in jail or prison.

We are the largest debtor nation in the world.......and we just keep going further in debt.

Greeks ruled the world...Rome ruled the world....Persia was the most powerful nation, England, France, Spain......America.....yep it's pretty sad....and niether the goverment or we really care enough to do anything about it......I do believe that at my somewhat advanced age I will not have to see the total collapse......or what we and past generations have saddle our children with.

Not a doomsdayer but a realist....reality is we are in trouble and getting deeper every hour of every day and I haven't even heard a hint of a plan to dig our butts out. Guess what...anyone who thinks this is temporary is a fool we will continue to have little ups and bigger downs.

Oh and Happy Leap Year

VinceAD

I'm taking my $600 rebate this spring to the track!

wtknght1

I'm sure Monica appreciated the work.

rikhek

I hesitate to post this as I know what I'm going to hear; I'm an evil man in an evil industry taking advantage of the working man.......

I'm in the oil and gas drilling, production and natural gas processing/transportation segments of the energy industry. We are doing extremely well. The company I work for is Unit Corporation (NYSE: UNT). Regardless of what I know many will post we work hard to make a dollar. Went through the 80's and much of the 90's trying to keep from going broke. Our business is cyclical. Currently we're in a up cycle.

I'm the VP of safety, health & environment for the company. Our drilling business unit is the 3rd largest in the US land sector with 130 rigs. We also have an exploration and production company and a midstream business.

We CANNOT hire enough people to run the rigs. Starting wages for UNEDUCATED, UNSKILLED entry level workers (i.e., roughnecks) is well over $50k/year plus full benefits. The "smart" uneducated/unskilled employees looking for a career can work up to rig manager level in 5 years and make over $100k/year.

The work force is depleted. Anybody wanting to work is working. Interesting tidbit is these opportunities exist without "unions".

PLUS, they work a 12 hour a day, 7 day on, 7 day off schedule (i.e., only work 1/2 the year). This is no exaggeration. The entire industry is unable to hire people. We can't get people to pass the drug test to work for these wages. Granted the work is hard, but very rewarding.

Time for people to consider leaving the places with limited opportunity and go where the jobs are. There is no lack of opportunity for somebody willing to work.

Life is great, as least my life. Others can realize the same if they're willing to go where the grass is greener.

BTW, I live in Oklahoma. Work with my company alone is available from Texas to Wyoming, Arkansas to Utah. No foreclosure issues in this part of the country. The economy in the areas where these opportunities exist are booming.

I hate having to put it on but, the FLAME SUIT is now on.

Rick

P.S. Please check the rate of return for my company/industry before posting how we're raping the working men, women and children of the good old US of A.

wtknght1

I don't think you're the one driving oil prices over 100/barrel. It's OPEC I have a problem with!!

But, any time an oil company pays one of it's execs $400M (or whatever insane number it was) as a severance while gas prices are $3/gallon, I have a problem with that. Nothing wrong with making a profit...but damn.

rikhek

You're correct. There is minimal "oil" exploration or production in the US lower 48. The "energy" drilled for/produced in the US lower 48 is 80% natural gas, 20% oil.

OPEC isn't driving the price, the market is setting the price. Too much production from the former USSR, Mexico. Canada, etc for OPEC to have the influence most people think they have. Don't get me wrong they can sway the market, but not set the underlying price.

When you say $400M is that $400,000 or $400,000,000? In financial reporting "M" is an abbreviation for thousand. If so I don't think a $400,000 bonus is out of line at all if difficult goals are met and shareholders are rewarded. $400 million on the other hand would make me skeptical as a shareholder!

Regarding $3.00 gas and the profit issue I googled a 2006 government report depicting the cost/profit breakdown for a gallon of gas:

47%: Cost of crude
23%: Federal, state, and local taxes
18%: Refining costs and profits
12%: Distribution and marketing, retail dealer profits

The federal, state and local governments make more profit than anyone else involved. MANY ARE UNAWARE OF THIS FACT.

Every $3.00 gallon on an nationwide average is taxed 23%, or approximately $0.75. This is obscene!!!!!!!

Reminds me of the Dire Straights song, Money for Nothing....

I don't feel profit margins for the ones doing the work are out of line. Hell, producers/sellers of bottled water have profit margins MANY magnitudes higher than energy companies.

If we want lower pump prices lets get the stinkin' government to cut there take!!!!! THEY **** me off.....

OCCOMSRAZOR

Let me be the first (and maybe only) person to thank you for doing a tough job, in a tough industry that seems to be everyone's favorite "whipping boy." No other business provides a product that promotes anything like the freedom and prosperity that is found in a single gallon of gasoline or diesel.

Yet, the ignorant believe that petroleum is the poison of the planet, promoting the stupid idea of taking a foundational food source like corn to put in a fuel tank. Nor do they recognize that oil is what fuels the economic engine of the earth, and will likely do so well into the next century.

Oil business profits, although "record" from a dollar perspective, are far from stellar based on percentage of gross sales. Frankly, local and federal government taxes are more than the actual net profit that an oil refiner makes on a gallon of gas, yet no one bitches about the "profit" that govt takes.

Your comments about the oil business are well taken. (At least by me.) During any given moment some industries are in the decline while others are prospering. That's the way it has always been and will continue. The fact is, most people are either too scared or too lazy to get re-trained in a saleable skill or move to a different part of the country where jobs are plentiful. It's always easier to whine when times get tough, instead of doing something about it. Such is life.

This country used to be full of real men who worked hard and played hard and did what was necessary to take care of themselves and their families. Now it seems like it's filled with a bunch of metro-sexual whiners who sit around playing video games, and watching Oprah.

rikhek

Wow, not the typical post I get on this topic. I truly appreciate your comments. I often get depressed reading posts on this subject. Energy people are just regular people trying to provide a good life for our families and ourselves. Most don't realize just how difficult the work environment is or how hard we work.

Rick

mwvettec5

AMEN !!!

xsiveone

John Shiels

not following the math your 20 dollar trip now cost 6 in a Honda? What model gets 36 mpg at 85 mph loaded up? Buying used also keep the resale high on a Honda. Honda just closed their motorcycle plant in Ohio as it is cheaper to make them in Japan.

wtknght1

Million.

Falcon

I'm all for the oil industry making as much money as it can.

Do we hear the harping when Bill Gates loads his bank account with bonuses and stock value increases? What about when Steven Spielberg makes a blockbuster movie and he racks in millions? Or Ken Thompson's, the CEO of Wachovia Bank, $6 mil unrestricted stock bonus after watching shareholder value tank?

If anyone doesn't like what the oil industry guys get paid or they think the industry is making too much money, then invest in the companies and reap the same profits.

Better yet, start your own oil company. All you have to do is assemble the capital, hire able employees, search the world over for oil reserves, lease those same reserves, buy the equipment to pump it out of the earth, buy some ships and ship it to the refinery you will have to build, then distribute it globally through the service station network you'll have to create and build, then file the multitude of state and federal EPA reports, then after you do all of that, you can sit back and watch the money flow in, no other work is required.

See, that's pretty damn easy.

John Shiels

but should big oil get millions in tax breaks as I always hear? I don't know the details on it but if anyone knows chime in please.