Today begins with oil prices dropping below 40 dollars a barrel. This reminds me of a time back in 1985 when the price of oil fell below 100 dollars a barrel. It resulted in the collapse of the offshore oil industry. Since it cost more to drill offshore than it does to drill on land, oil ventures could not afford to continue drilling in the Gulf of Mexico. Banks de-valuated the worth of these companies eventually drying up there credit and most of the smaller companies went into bankruptcy. Along with these oil companies they were accompanied by all the service vessels and, in fact, all services related to the industry. Most of the Louisiana and Texas businesses who relied on this industry all but died in a two tear time frame. Few lasted more than that. With the industry was the service of many of the workers families. So everything had a trickle down effect from Auto sales to groceries sold.
At the time of this event, my family owned one 65 foot oil vessel. Right out of the Navy, I decided not to go to college but to get my US Coast Guard Captain’s license and run the family boat. I thought that I would one day help to build a fleet of boats and take over the company one day. My father had been rebuilding a large old colonial home in Texas and we managed to purchase many items during the seven years of prosperity brought on by the oil industry. All of us kids, me and two younger sisters. had new cars as did mom and dad, all bought on credit. We had 40 acres outside of town also making payments and improving the property. We had three horses. We had a small lake boat 18 ft. We had bought all the tools to re build the huge old house. We had lathes and planers and all sorts of home building tools. Most of the furnishings were bought with the hard work of my dad over my lifetime since the sixties. Now this may seems like rich folks buying stuff like there was no tomorrow but that is not the case.
In 1970 we moved to the hill country of Texas with next to nothing. In 1974 my dad was in the Real Estate business selling ranches in the the hill country on commission. We struggled to survive every year until 74. Then he brokered a deal with HB Zachary to build a huge subdivision on Lake Travis. The week before we were about to break ground and bring our family out of poverty for good, the Interest rate was manipulated as it is going to be this next year. It went from 7 percent to 17 percent over night. The real estate trust was busted pulling everything off the table all over the country similar to 08. Since all my dad’s time and effort was sunk into this one big deal we had nothing to fall back on. We had to pick up and leave flat broke and now living with my Grandmother on the Gulf Coast. That’s where dad took one derelict boat in the beginning of the Gulf of Mexico oil exploration days and built an empire. A classic rags to riches hard work story.
Now back to 85. We had built the business up a little at a time until we got a contract with Shell oil. We had that contract for 11 years. Four of those years, I was in the Navy. When I returned, I started running the boat. The week that the oil prices fell dad started scrambling to secure our finances because he feared what was soon to come. and come it did. so fast that it would make your head spin. That year, there were 125 drilling rigs in the Gulf of Mexico.
Each of those rigs had at least five boats working with it. This did not include the three offshore tugs it took to move the drilling rig from place to place. Many hundreds of vessels also supplied the already drilled and producing platforms. Personnel for each rig had at least 25 to 30 men on the rig. Crew for each boat was 3 to 7 depending on the size of the vessel. They ranged from 65 foot standby boats to 150 foot supply vessels. 100 foot crew boats carried drilling crews and small loads nearly every day back and forth to the rigs. Hundreds of thousands of gallons of diesel fuel were bought every day to fuel these ventures.
That fateful day in 85 was one I will remember forever. By the end of the week over half of the rigs had shut down and were on their way to be dry docked. No jobs to go to next. By the end of the next week, the rig total had dropped to only half of the remainder. In three weeks there were 25 rigs in all of the gulf of Mexico. By that time we had been let go from our contract and with no drilling we were finished. All of this because of Muslims in the Middle East (OPEC), who decided to produce more oil glutting the market with cheap oil. Sound familiar?
History is now repeating itself. In 85 the IRS was knocking on the door of every business in the industry. Auditing and disallowing deductions they could not use unlit next year. There was no next year for most of them. They took all the assets of the oil industry forcing thousands upon thousands into bankruptcy. Towns all but dried up. Families ending in divorce and sometimes suicide died with the businesses. Our empire gone. We lost everything. Furniture, House, Property, Cars, Boats, Horses, Tools and my little sister divorced with a new baby at home. It is hard for a now 50 year old man with a family to start over. My dad barely held on to his sanity. Many of his peers in the industry did not.
So you see what is good for one is not always good for another. While people not connected with the industry on land today are enjoying wonderfully low gas prices this Christmas, there are so many millions of people in the oil industry who are wondering what their next trade will be next year. Some have never know anything but drilling. Business in oil towns across the nation will see a marked drop in sales in all businesses across the board. The effects by the first of next year will be like 85 was to the Gulf industry and like 2008 was to the building and real estate business.
The Fed has printed so much money that the world is being told the US dollar is strong. That could not be further from the truth. This Dollar is nothing but debt driven with nothing to back it but promises we have no way of keeping. Confidence in the dollar is at a historic low. With the rise of interest rates, it will be like my dad’s empire in 74. Investors will pull up stakes and leave hundreds of thousands of others in the same shape as the dying oil field industry but this time across the board from manufacturing to sales, food production to car sales.
So they broke the fisherman, the farmer, the manufacturer, the real estate, the banks, the auto maker and the faith of the American people in less than 25 years and they are not finished with us yet. Bankruptcy is certain next year for many and the IRS is going to, once again, have fuel to come after those who are small and barley getting their businesses off the ground. The big money elite will come and suck the life out of all the little people for a dime on a dollar as they did to those going broke in the last oil collapse in 85. Just as they did in the housing industry in 08. You can see it happening on wall street right now. Stocks fall and the wealthy are snatching it up so fast it makes one’s head spin. Chewing up our prosperity and spitting it out on us like some thug. If it were not for the power hungry elite taking advantage of fire sales on wall street, a depression of unprecedented magnitude would be upon us now.
Our collapse is coming, starting in the first quarter of next year with the interest rate hike. They won’t send it sky high like they did in 72. They will raise it every month until they bankrupt America. There is no way to pay back our debt at 0 interest. The ponzi scheme is nearly over. No more confidence man and there goes the game. Con over. So you know, the only choice the elite have in times like these is to start a full fledged war. That is currently working out really well for all the major players. It will succeed in bringing us all into the New World Order. Global Communism which was only fully portrayed in Orwell’s novel 1984.
The storm is coming my friends. Please don’t read this and say this won’t happen. It will and if you do not have a plan for no work and no way to feed your family then you will be like the poor people I saw go through 85 and 08. Pensions will be lost. Nest eggs spent. Investments lost. Families broken. No Government Agency is going to help a white family. You my friends are on your own. The left will find every way to make this your fault or at least all Americans have brought this upon ourselves. So far they have demonized us all for their policies. They will continue to use the same methods of shaming us and blaming the govs mistakes on us. Do not deny this any longer or go down with this sinking ship without a life raft.