Posted on 06/01/2016 3:58:44 PM PDT by bananaman22
A report from Pew Research Center reveals that between the third quarter of 2000 and the same period of last year, wages across the U.S. rose by an impressive 7.4 percent in real terms, driven largely by the oil and gas industry.
Wages in energy-dependent communities rose by the most, in some cases more than twofold, such as in Texas. This shouldn’t be surprising as the period reviewed coincides with the peak of the shale boom in the country, even though it also covers two periods of recession.
But those positive effects are starting to disappear. The energy industry is cutting spending, and it has very little need for new personnel, to say the least. Even if crude rebounds to $60, which some analysts say will happen before the year’s end, E&Ps and their associates from oilfield services will most likely tread cautiously. The industry, in other words, is dealing with its very own depression and will hardly be able to continue to drive wage increases in the short- or medium-term.
Does it matter that the energy industry drove the wages increase between 2000 and 2015? Historically, yes. This is important data, revealing patterns and trends in the U.S. economy made possible by an unprecedented advance in oil and gas production. Does it matter for the future? Not really, besides perhaps in predictive modeling.
(Excerpt) Read more at oilprice.com ...
The IT industry was ready to pick off where the oil industry left off, but the traitors in government had those jobs shipped overseas.
I said when the downturn in the oil patch occurred that we would truly find out how much it was in fact driving the economy.
So can blame our “friends” the Saudis for the loss of oil jobs after all the domestic investment, as they just dumped a bunch of cheap crude on the market?
“Oil Industry Drove US Wage Growth. Now that Is Over”
Don’t I know it!!!
I hope your Hubby finds more work Megan, you have a growing family ;)
Steady work is the thing. He has a few weeks ahead up in Canada and then he’ll be home again.
Never underestimate the economic value of the US Constitution, the rule of law and the respect for property rights in the US. Despite the Obama administration, the US remains the safest place in the world to invest and store capital. During the last decade hundreds of billions of dollars from the Mideast, China, Europe and South America have been infused into American equity markets, choice real estate and Government bonds. This huge capital infusion has prevented a severe economic decline and countered Obama’s anti capitalist, anti growth policies. The infusion of this capital cannot go on forever and equity markets declined sharply in the 1st quarter as the cash strapped Saudis were forced to liquidate a chunk of their portfolio. If Clinton is elected and maintains the Obama regulatory, restrictive blizzard, deficit spending and high taxes, the mirage of prosperity will soon vanish.
They are showing up in the railroads. My boy works for a Utah railroad and reports that Burlington Northern just cut their business with them by 40% and he is now looking at a 10% wage reduction in the upcoming contract talks. Say this effect is going on throughout the industry, not just on his line.
‘They are showing up in the railroads. My boy works for a Utah railroad and reports that Burlington Northern just cut their business with them by 40% and he is now looking at a 10% wage reduction in the upcoming contract talks.’
Doesn’t good old Buffett own Burlington Northern that he bought to bring in Canadian oil sands? Folks wonder why the Keystone Pipeline never got the O.K.
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