2020 will no doubt go down in history as the year life as we know it decided to turn everything on its head. Covid-19, businesses shutting down. Businesses opening back up. State and local officials telling us we can’t afford to do either. It almost feels like those stories my son used to tell me when he was 4 years old have come to life. “There was this time when a pandemic hit and people got sick, but then they were okay and then there was no toilet paper and then it snowed, etc. etc.” All lightheartedness aside, there are some very real issues on the horizon that we should all be made aware of if we are to continue to drive the most powerful economic engine the world has ever known. #America!
If you are thinking about doing anything with plastic, you may want to consider doing so in the very near future. I keep a very close eye on what the industry is doing in an effort to keep my customers from paying more than they have to. One way I do this is by watching the United States oil rig count. In short, the more rigs that are open the more oil is produced. Oil pricing directly impacts plastic resin pricing. When rigs start to shut down good old fashion supply and demand kicks in and prices go up. As you can see below, rigs have been suspending operations at a rapid rate since April of this year. I have started to see an uptick in plastic pricing and my 10+ years in the industry tells me this will continue based on the counts below. If you are wanting to get an order in I would strongly encourage you to do this sooner rather than later. I am, by no means, drinking the Kool-aid on most of the fear mongering that is being so flippantly peddled these days, but unlike some of those stats, these numbers are real and could impact your business. Seize the day my friends.
April 3rd, US rig count down 64 in past week to 664.
April 9th, US rig count down 62 in past week to 602.
April 17th, US rig count down 73 in past week to 529.
April 24th, US rig count down 64 in past week to 465.
May 1st, US rig count down 57 in the past week to 408.
May 8th, US rig count down 34 in the past week to 374.
May 15th, US rig count down 35 in the past week to 339.
May 22nd, US rig count down 21 in the past week to 318.
May 29th, US rig count is down 17 in the past week to 301.
June 5th, US rig count is down 17 in the past week to 284.
June 12th, US rig count is down 5 in the past week to 279.
June 19th, US rig count is down 13 in the past week to 266.
June 26th, US rig count down 1 in the past week to 265.
July 2nd, US rig count is down 2 in the past week to 263.
July 10th, US rig count is down 5 in the past week to 258.
July 17th, US rig count is down 5 in the past week to 253.
July 24th, US rig count is down 2 in the past week to 251.