Natural Gas destroying small Oil Companies.

Natural Gas destroying small Oil Companies.

PostBy: EarthWindandFire On: Fri Nov 08, 2013 11:06 am

I just read a very good article about natural gas and it's effect on small mom and pop oil companies.

Seems that natural gas in hurting oil companies and putting many of them out-of-business. That reminds me of when home heating oil companies put coal dealers out-of-business. What goes around comes around as they say.


http://www.miamiherald.com/2013/11/07/3736672/natural-gas-gains-squeeze-family.html
This link is broken, either the page no longer exists or there is some other issue like a typo.
EarthWindandFire
 
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Re: Natural Gas destroying small Oil Companies.

PostBy: VigIIPeaBurner On: Fri Nov 08, 2013 11:09 am

Capitalism has that effect when the markets are (somewhat) open. Guess the oil companies really need those subsidies, but are they going to the smaller companies?
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Re: Natural Gas destroying small Oil Companies.

PostBy: samhill On: Fri Nov 08, 2013 11:33 am

Nothing goes that far down the trickle down route, it's all dried up at the top. The solids will however make it to the little guy. :o
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Re: Natural Gas destroying small Oil Companies.

PostBy: VigIIPeaBurner On: Fri Nov 08, 2013 1:16 pm

samhill wrote:Nothing goes that far down the trickle down route, it's all dried up at the top. The solids will however make it to the little guy. :o


As gravity would have its way in nature!
    :lol:
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Re: Natural Gas destroying small Oil Companies.

PostBy: SuperBeetle On: Fri Nov 08, 2013 1:23 pm

I know here at least the small oil companies have the best prices. Although two of them merged, they did so to try and keep up with demand. They are very, very busy and very customer oriented. They will deliver whenever you want.
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Re: Natural Gas destroying small Oil Companies.

PostBy: VigIIPeaBurner On: Fri Nov 15, 2013 8:30 am

Well, my wise ass remarks have smacked me in the face. Not me but my octogenarian parents and my wife's septuagenarian cousin. A long time local oil company offered a deal last year to prepay for heating fuel for a given delivery period. My parents bought ahead, several thousand dollars worth. Now the company, in the beginning of the heating season, states they are closing. Prepaid customers get screwed unless, as the newspaper article states, they paid by credit card. I'll know more later.
http://www.lehighvalleylive.com/breaking-news/index.ssf/2013/11/norton_oil_co_prepay_customer.html#incart_river
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Re: Natural Gas destroying small Oil Companies.

PostBy: GoodProphets On: Fri Nov 15, 2013 9:46 am

VigIIPeaBurner wrote:Well, my wise ass remarks have smacked me in the face. Not me but my octogenarian parents and my wife's septuagenarian cousin. A long time local oil company offered a deal last year to prepay for heating fuel for a given delivery period. My parents bought ahead, several thousand dollars worth. Now the company, in the beginning of the heating season, states they are closing. Prepaid customers get screwed unless, as the newspaper article states, they paid by credit card. I'll know more later.
http://www.lehighvalleylive.com/breaking-news/index.ssf/2013/11/norton_oil_co_prepay_customer.html#incart_river


That is sad news if it hits your relatives.

I am sure it doesnt end like this.
If someone buys the company, they take on the debt.
Or if they fold and do not get bought out, they still have the assets to sell,
and I am sure it will pay off their debt.

If the company was open for 70 years, they have to have been good people,
but if new management turned them into greedy money lovers, they will pay in the end.
Sounds like the company has money/assets so things may be bad and get worse,
but should turn for the better at some point.
I dont think a lawyer would be cost effective unless needed at the end.
I would not be surprised if the DA gets involved with everyone else calling them fast.....it is cold out!

Good luck.
GoodProphets
 
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Re: Natural Gas destroying small Oil Companies.

PostBy: freetown fred On: Fri Nov 15, 2013 10:07 am

Problem with all that GP is once it gets into the courts, & ya know it will--IF they shut down completely---plus, who would buy a situation like that?-- most of the litigants will be dead before things get settled:( I'd bet--not being a real trusting kinda guy--that that company knew exactly what they were doing--SAD thought huh?????????????????????????????????????????????
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Re: Natural Gas destroying small Oil Companies.

PostBy: GoodProphets On: Fri Nov 15, 2013 10:28 am

Yeah I guess 70 years ago when the company started it had to be run by a different mindset.
Customers came back to keep them in business for 70 years.
But if those fundamentals are now gone, I guess the money is too.
Really sad to have it happen and to think that badly on something, but
the truth is between the lines.

I hope anyone that prepaid (being they had the goal to do so) have enough funds
to keep them warm this winter.
Not everyone is in the same boat as some, and I could imagine that
a few that prepaid will have a hard time funding funds to fuel this winter.
GoodProphets
 
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Re: Natural Gas destroying small Oil Companies.

PostBy: samhill On: Fri Nov 15, 2013 11:08 am

The worse part is that if it does go into bankruptcy unless there is specific wording as to who gets what first it's normally like most everything distributed from the top down & the top few end up with everything. :cry:
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Re: Natural Gas destroying small Oil Companies.

PostBy: franco b On: Fri Nov 15, 2013 11:39 am

freetown fred wrote:-that that company knew exactly what they were doing--SAD thought huh?????????????????????????????????????????????

I agree with Fred. They are thieves and scruple went out the window when they got in trouble financially.
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Re: Natural Gas destroying small Oil Companies.

PostBy: VigIIPeaBurner On: Sat Nov 16, 2013 9:29 am

I certainly hope that the company does the moral thing but my cynical side was in front of Fred's and Franko's thoughts. They have done one positive thing - they're filling the tanks of all the pre-buy customers over the last two days. Phillipsburg has a lot of Chapter 8 housing and many people use heating vouchers to fund their fuel oil needs. Once the vouchers are spent, most don't have the means to get oil from another supplier. If it doesn't get straightened out before mid January, we'll be seeing those stories above the fold in the local paper.

The family's patriarch started his little financial empire shortly after WWII. Gas stations, heating fuel, liquor stores, housing and then real estate. He's gone now and the assets have been run by the heirs. Much of it has been sold off. In retrospect, that should have been a harbinger of this event. Over the many years, I've heard complaints about how the businesses conducted their affairs but complaints are part of being in business. I took them at that. If the oil company does do good by their customers, they sure could have benefited them by rolling this information out and laying a step by step plan on the closure. People would have known what was coming. The fact that it didn't go down that way so far feeds my cynicism. :mad: Are they hiding some big stuffed saddle bags and making the mad dash outta Dodge? :mad3: Big companies use to do that to their employers but laws were enacted to require them to notify them. Shouldn't need laws for this stuff but that's the nature of some business people. I'm in the middle of exactly that scenario now but I have a year to get it together before I'm put out the door after 38 years with the company. I won't be cold but a good number of the customers might be.
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