Tumbling oil could take thousands of jobs with it

[ND-Dem]

Bad news already started to flow this week: Halliburton (HAL) affirmed that it plans to cut 1,000 positions due to the depressed oil market, and BP (BP) announced an unspecified number of layoffs as part of a $1 billion restructuring plan. More cuts are almost certainly on their way.

On Monday, ConocoPhillips (COP) became the first major U.S. oil company to reveal that it is slashing spending for 2015, a decision the CEO asserted was "prudent given the current environment."

It's true the job losses aren't widespread yet. Oil would have to fall a lot further for many energy companies to become unprofitable. And economists say cheap gas is akin to a $60 billion gas cut to consumers.

But there are reasons to worry. The U.S. shale oil boom has become such a key driver of the economy in recent years, creating well-paying jobs at a time when other industries were scaling back. According to Fatima Iqbal of Azzad Asset Management, over 15% of total employment gains since the beginning of 2008 have come from the energy industry, even though it is less than 1% of the country's job base.
"A prolonged slump in energy may endanger these jobs," she said.

http://money.cnn.com/2014/12/12/investing/oil-prices-job-cuts/

[Vincardog]

1. F*ch them thousands less polluting my water and air

[Travis_0004]

11. Oil is still being used. Probably more oil as cost go down.

More SUVs sold, and people are driving a bit more.

[NightWatcher]

2. I'd be just as happy if the gun makers had to layoff their employees

A better world is worth a few unemployed. They can find NEW jobs is different industries.

[bluedigger]

64. We could change a few laws and let Putin flood the market with AK's.

It's about all he has to sell anyways.

[Fred Sanders]

3. Trying to convince folks in the most energy hungry nation on earth that cheaper energy is a bad thing is

funny.

Skilled workers will have little trouble finding jobs in other industries in a booming economy.

Try solar.

[bluesbassman]

6. What "booming economy"? You didn't read the article did you.

But there are reasons to worry. The U.S. shale oil boom has become such a key driver of the economy in recent years, creating well-paying jobs at a time when other industries were scaling back.

I find it odd on a Progressive board that there is an attitude of animosity toward the workers in the oil industry. The reality is that the corporations have been making money hand over fist for years, and now that the price has dropped they're cutting jobs to keep their obscene profit margins intact and the best people can come up for those workers affected is "find a new job"? I'd wager most of those affected are living paycheck to paycheck and losing their job is going to hurt until when and IF they can find a new gig.

[JonLP24]

9. Oil workers do make good money

provided they strike black gold & don't face a lot of setbacks. Don't get me wrong, it is very dangerous, long hours, & too many setbacks are costly but if things go well the money is good. The industry has high turnover because of the labor, danger, & hours which drives up the wages but with the temporary nature of it is a lot of what you say.

[Logical]

13. So under your logic we artificially keep the prices high? Nt

[JonLP24]

16. The only way to do that

is halt production & layoff folks. Lifting oil sanctions off Iran will help keep prices oil but I think an interest is put the squeeze on Russia oil revenues. I think once Saudi Arabia cuts back, everyone else will follow, resuming production once the prices bounce back up.

US could charge more for oil but everyone will just buy elsewhere so the prices have to be competitive.

[bluesbassman]

30. I didn't say that.

I said the oil companies want to keep their profits high and when prices fall the fastest way to maintain high profits is to reduce labor costs.

[ND-Dem]

20. the people on this board don't work in industry, most likely. unless its the financial industry.

and the ones mocking aren't in danger of losing their jobs

[Godhumor]

49. And you've reached that conclusion how exactly?

Curious to know how you've pegged the demographic breakdown of the board so quickly.

[Fred Sanders]

52. Local economic impacts in a cyclical resource industry...never heard of such a thing.

[GeorgeGist]

63. Hook, line, sinker.

Entirely predictable.

[JonLP24]

8. Not that easy in a state like Wyoming

Economy is booming for Wall Street, for others it is still lagging but place matters.

Not that I'm concerned or any more than this is typical with up and down oil prices, the geopolitics & rising tensions that comes from country economies concern me more but the reality won't be "little trouble" for families in the oil industry. Though most states aren't nearly as dependent such as Wyoming & North Dakota but the industries will hire again once the price is back up.

[ND-Dem]

19. the economy's not booming. sorry to break it to you.

[Trillo]

70. Solar didn't used to be taken seriously by big oil or fossil fuels.

Here on DU there used to be a poster who challenged the solar industry to produce a significant amount of power. I haven't seen him post in a long time.

I think the reason oil was pushed down was because of competition from solar. There was some kind of bill recently that Congress was either proposing, or it passed, to put sanctions on Chinese photovoltaic cells. States are putting up barriers to rooftop solar. There's a war being waged on solar.

I'm saying low oil prices threaten the solar "advanced energy" sector, because it is now viable energy competition.

Our global oligarchs are showing us their rigged market.

[elleng]

4. Right, and everyone will have to readjust.

That is life.

[ND-Dem]

21. some people's lives.

[elleng]

23. ALL of our lives,

and we MUST suffer temporarily to survive and thrive for the long-term.

[ND-Dem]

24. everybody's not unemployed, or being threatened with it. money insulates the monied from

unemployment, gas prices, illness, and lots of other things.

no, we're not all in this boat together and we're not all going to 'survive and thrive' in the long-term either; especially those already drowning in the short-term.

[elleng]

27. My point is to provide for those drowning,

and reform for all for the future.

[ND-Dem]

28. the unemployed are drowning; no one's providing

[elleng]

29. We SHOULD be providing,

but WON'T do that if uninformed and uneducated electorate continues electing fools who refuse/fail to recognize relationship between what's happening to poor adults and their children NOW, and what our future will look like.

[ND-Dem]

32. if the electorate is so uninformed and uneducated, whose fault is that? if democrats just

assent to cuts to social services without putting up a real fight, what use are they?

[elleng]

33. Its EVERYONE's fault, dems enabling repugs to do what they want to do, and

repugs for wanting to do it going in. What's the electorate look like in ND? Spend much time with faux-noise?

[ND-Dem]

34. the electorate wasn't any smarter or more educated 50 years ago, but things were different

regardless. maybe it doesn't have anything to do with 'uninformed' and 'uneducated' voters.

[elleng]

35. I don't refer to 'smarter,'

but media was more accurate 50 years ago, less manipulated. Today's electorate is much less truly informed than it was in the past, notwithstanding 'social media,' and 24/hour 'news,' as news really was NEWs then, not owned by a handful of manipulative oligarchs.

And education truly included HOW government makes decisions.

[ND-Dem]

36. I doubt media was more honest; just less omnipresent.

[elleng]

37. There was competition among media outlets,

hence there was more honesty.

[99Forever]

5. I should care that people in that price gouging industry are getting hurt because..

_____________________________________?

[TransitJohn]

12. They're your neighbors, maybe?

Workers are workers.

[99Forever]

42. You mean like all of the concern they had for us as...

... they sucked our wallets dry? Or the crocodile tears they cry as they pollute this planet's air and water and turn it into poison? Or their huge concern abut altering the ground to the point it causes multitudes of earthquakes in places they were almost unknown before?

Yeah, right. Hold your breath waiting for that.

[KittyWampus]

58. They are laying off the underlings and not the CEO's.

[TransitJohn]

66. Your choice of name is really strange considering the contempt you hold for workers. eom

n/t

[99Forever]

67. What a silly attempt at a personal dig.

Last edited Thu Jan 29, 2015, 10:46 PM - Edit history (1)

Got a news flash for you, "TransitJohn." Not all "workers" are the same, some give a shit about the planet and won't work in an industry that is killing it. Other think their personal betterment is more important. So yeah, bud, I have lots of contempt for some "workers." I hope they find work in other industries that care about the future. Don't like that? Too effen bad.

[TransitJohn]

68. Is it hard to come down off that cross and talk to us proles? eom

n/t

[99Forever]

69. From silly to pathetic.

Try again.

[kelliekat44]

74. I share many of your feelings. However, I still feel compassion for anyone losing their livelihood.

[wildbilln864]

7. $44.57 per barrel at this moment...

http://www.kitco.com/market/

[madinmaryland]

10. Nice post, Dick Cheney...

Halliburton will fuck the American people whether the prices are up or down. Now go find reality.

[nakocal]

14. Solar Power has created more jobs than oil

And just think how many more jobs there would be if the douche-bag republicans had not constantly tried to halt solar power.

[ND-Dem]

40. i doubt it. got any data on that?

[Trillo]

72. Here's some statistics that may support the statement

http://info.aee.net/hs-fs/hub/211732/file-2173902479-pdf/PDF/aeei-california-advanced-energy-employment-survey-fnl.pdf

here's a specific snippet:

The advanced energy industry added
jobs at a 5% rate in California from
2013 to 2014, more than double the
rate of overall state job growth of 2.2%
and about three times faster than the
national job growth rate of 1.6%.7

[mahatmakanejeeves]

76. Yes, but:

The advanced energy industry added jobs at a 5% rate in California from 2013 to 2014, more than double the rate of overall state job growth of 2.2% and about three times faster than the national job growth rate of 1.6%.7

Let's say there is one person employed in the advanced energy industry in 2013. The industry adds an additional worker. That's an annual growth rate of 100%!

Meanwhile, let's say there are 100,000 workers in the non-advanced energy industry. That industry adds 10,000 workers. That's a annual growth rate of only 10%.

So growth rates don't always translate to actual jobs added.

I can check U.S. Bureau of Labor Statistics data on Monday.

ETA: I'll start here:

Overview of BLS Statistics by Industry

and keep going:

Industries by Supersector and NAICS Code

Oil and Gas Extraction: NAICS 211

Trade, Transportation, and Utilities

Utilities (NAICS 22)

I'm sure there's more.

Best wishes.

[RiverLover]

43. And a 40% carbon reduction project would create 2.7 mill jobs with green energy infrastructure

http://www.democraticunderground.com/10026151179

[onecaliberal]

15. When bush took office oil wasn't expensive

I'm not sure I buy the whole sky is falling if we don't pay four dollars a gallon.

[JonLP24]

17. Higher prices were more harmful to the US economy

especially in the past as a major importer. Only individual states dependent on the oil & gas industry such as North Dakota & Wyoming are harmed by low prices but as a whole, USA doesn't live or die on oil production not like the economies of Iran, Venezuela, Russia, & others. US economy is actually holding the World Economy from sliding into a global recession.

[onecaliberal]

51. Makes sense. How could more money in the pockets of workers

Be a bad thing.

[mwrguy]

18. boo fucking hoo

Tears for Halliburton and their minions :~(

[ND-Dem]

22. "halliburton and its minions" won't be losing jobs. just ordinary workers.

[Lancero]

59. And those are the minions.

You want to see how much DU 'really' cares about workers? Mention oil workers getting laid off.

Bit funny to see how quickly they jump from the 'caring about workers' to the 'why should we feel sorry for them?'

I don't care much for the industry, but seeing some of the comments directed to the workers is rather disheartening. It's pretty sad to see DU touting Republican anti-worker idealogy.

[herding cats]

26. Everyone in the industry knows the perils.

It's always been fraught with peaks and valleys. This is just one of many downturns and they'll use this to weed out some of the less solvent smaller businesses as they set themselves up for even bigger future gains.

It's a highly manipulated market, what else is going to happen in a situation such as that?

[kelliekat44]

75. They should stop whining about the system (capitalism) they love so much. Pull up by your oily boot

straps and move on.

[YOHABLO]

31. Well the weapons manufacturing industry is hiring.

[Sherman A1]

38. Possibly

or it could help to create jobs as people who have been squeezed by high fuel prices are able to redirect their purchasing power elsewhere, thereby creating demand in other sectors.

[JDPriestly]

39. I heard on KPFK (Pacifica) that Christine LaGarde, head of the IMF suggested ending the

subsidies for oil, gas, etc. in order to use that money to fund other things.

We should do that and then use the money to hire people to make houses more energy efficient and to install or erect facilities for alternative energy sources.

[Trillo]

73. ^+1. Something to consider doing to save jobs.

Interesting and paradoxical how the oil oligarchs convince us to help them keep their prices high.

Some of us would like to end fracking. Kinda worried about people who had kids (I didn't) and keeping the earth somewhat habitable for future generations of humans and many of the other current species. A bunch of those hydrocarbons (deposits that are known of) need to stay in the ground to mitigate accelerating climate change.

[Blue_In_AK]

41. North Dakota pols must be flipping out

about as much as Alaska's are. They're going all apoplectic up here over Obama's plans to protect ANWR and the arctic oceans.

And, yes, the oil situation is wreaking havoc on Alaska's budget.

[SidDithers]

44. And save people hundreds of dollars in heating and fuel costs...nt

Sid

[RiverLover]

45. So, this is just one facet, there is also a possible market crash due to oil derivatives, which is

why Citigroup & JPMorgan pushed for the rider in December to save their gambling asses and put the risk on the American taxpayer to bail them out again when it all goes belly up.

But will crying about this help? Will pretending to not be happy our environment is a little bit safer for now at the expense of jobs make the situation change?

Hell no.

What this SHOULD be is a massive wake up call to switch to green energy & create 2.7 MILLION sustainable jobs & help curb climate change while doing so. But our politicians are purchased by energy cos & wall street, so its not happening.

Pisses me off.

[2naSalit]

62. +1

[Vinca]

46. Put them to work installing solar panels everywhere.

[HappyMe]

47. I can't manage to squeeze out a single tear.

It's past time to keep going forward with alternate energy sources.

I doubt Halliburton or BP felt bad about soaking people for $4+ per gallon.

[treestar]

48. If you're selling your product cheaper, you are usually in good shape

More people can afford it.

[makokun]

50. I don't understand why one would look for sympathy here.

This is a political board, and politics is an effective means to an end. Certain groups are not useful to the accepted strategy of achieving that end. Everyone is welcome to be for The Movement, but obviously The Movement cannot be for everyone. If you want to be a more integral part of The Movement it would be better if one consult the list of acceptable activities.

The prevailing thought is hydrocarbons are bad, therefore those who benefit *directly* from hydrocarbons are inherently bad b/c they are "directly" benefiting from a violation of dogma i.e. heretical activities. Besides oilfield workers are predominantly republican since they have a hard time understanding and accepting the higher tax rates they pay due to extensive overtime. If they were better at understanding the big picture or perhaps more educated I think they would obviously vote differently. They would then probably work in renewable energy like so many other blue collar types. "Burn that witch at the stake! She deserves it!" as a church going, socially well regarded, Salem towns person might have said in 1692. We are basically tribal are we not? Why else would we be here? We must be true to ourselves and allow ourselves our humanity.

I understand that in times of stress and crisis a person reaches out to their social network for moral support, I just however would suggest that reaching out would probably be more effective in a different venue.

[FSogol]

53. Translation: Leave the oil companies alone.

Pathetic OP.

[Yavin4]

54. How many IT jobs have been lost in this country due to outsourcing and H1B Visas?

Nobody gives a fuck about ITers. They tell us re-train for something else all of the damn time. And now, I'm supposed to feel sorry that a few oil jobs are going away after years of record profits???

Give me a fucking break.

[jwirr]

55. Put them to work building alternative energy sources.

[dembotoz]

56. things change need to adjust

sadly always jobs do not exist as much now



god know i found that out.....

[FBaggins]

57. Specific jobs... but not NET jobs

What about the companies that benefit from lower energy costs?

What about the ones that benefit from the greater discretionary spending power of the working and middle class consumers?

No positive impact on jobs there?

[ladjf]

60. and at the same time will create as many , if no more, new jobs

made possible by the availability of new income to American people because if the amount saved on cheaper gas.

[FLPanhandle]

61. Low oil prices is projected to save the average American family between $500-$800 this year

That's a lot of extra spending for the economy.

[bluedigger]

65. The oil state's loss is the Northeast's gain.

Things have a way of evening out. A lot of people staying a little warmer this winter.

[Bluenorthwest]

71. A post lauding Haliburton, BP and shale oil extraction....

everyday a new low

[fredamae]

77. Re-train in Green Energy!

Help that industry grow even faster than it already is. Way healthier line of work, I would think, to boot.

It is past time to transition away from oil products, grow industrial hemp to replace Many petroleum based plastic packaging methods, fuel, fiber, medicines and even food. Draught tolerant, very renewable...and very doable as soon as congress removes it from the Feds CSA Schedule I classification (most dangerous, addictive, high potential for abuse and no medicinal value sorta thing) where it rests to obstruct the fierce competition it offers petro products, imo.

Perhaps people who were in the Horse and Buggy business 130 years ago didn't like Automobiles much, either.
None-the-less, it was a dying industry the day the first prototype of the first horseless carriage was conceived.