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Tumbling oil could take thousands of jobs with it
Tumbling oil could take thousands of jobs with it ^ | December 12, 2014 | Jesse Solomon

Posted on 12/16/2014 5:20:17 AM PST by thackney

The oil price crash could take thousands of good-paying jobs with it in America and around the world.

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."

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.

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.

(Excerpt) Read more at money.cnn.com ...


TOPICS: News/Current Events
KEYWORDS: energy; jobs; oil
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1 posted on 12/16/2014 5:20:18 AM PST by thackney
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Enbridge cuts jobs amid slumping oil prices
http://www.bizjournals.com/houston/morning_call/2014/12/enbridge-cuts-jobs-amid-slumping-oil-prices.html

Houston-based Enbridge Energy Partners LP (NYSE: EEP) is the latest energy company to announce budgetary cuts amid dropping oil prices and industry-wide cuts.
In an effort to reduce costs, Enbridge Energy Partners has cut jobs in its domestic gas pipelines business, according to the Houston Chronicle. Less than 100 jobs were cut.

The midstream business unit is known as Midcoast Energy Partners LP and is a limited partnership formed by Enbridge Energy Partners. The job cuts will impact Midcoast Energy Partners.


2 posted on 12/16/2014 5:21:12 AM PST by thackney (life is fragile, handle with prayer.)
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BP to spend $1 billion on thousands of job cuts
http://www.reuters.com/article/2014/12/10/us-bp-restructuring-idUSKBN0JO0QN20141210

BP will cut thousands of jobs cut across its global oil and gas business by the end of next year in a $1 billion restructuring programme announced on Wednesday following steep falls in oil prices.

The British oil major said it was also considering deeper cuts to its 2015 budget beyond the $1-$2 billion reduction already announced in October, as a result of the oil slump.


3 posted on 12/16/2014 5:22:11 AM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

There will be some losses in the fracking market but OPEC’s attempts to throttle it are futile.

It will be back.


4 posted on 12/16/2014 5:22:25 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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Oil and gas sector ‘could lose 35,000 jobs in next five years’
http://www.bbc.com/news/uk-scotland-scotland-business-30395972

The study - commissioned by industry body Oil and Gas UK, industry skills and safety body Opito and the Department for Business, Innovation and Skills, says jobs could fall from 375,000 to 340,000 by 2019.

It also estimates 12,000 new workers will be needed for the UK sector.

The study is called ‘Fuelling the next generation’.

Oil and Gas UK said the sector has a £35bn supply chain and provides one in every 80 jobs in the UK.


5 posted on 12/16/2014 5:23:27 AM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

My God!!!! Cheap gas is a nightmare!! Come to think of it, EVERYTHING should be MUCH MORE EXPENSIVE!!! Then the economy would REALLY take off.


6 posted on 12/16/2014 5:25:37 AM PST by Doctor 2Brains
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Halliburton Cuts 1,000 Jobs As Oil Prices Tank
http://www.businessinsider.com/afp-halliburton-slashes-1000-jobs-in-eastern-hemisphere-2014-12

Halliburton, the world’s second biggest oil services company, said Thursday it is slashing 1,000 jobs in its eastern hemisphere offices amid tumbling global oil prices.

The layoffs, which are effective immediately, represent 1.25 percent of Halliburton’s 80,000-person workforce.

The layoffs will take place in Europe, Asia, Africa, the Middle East and Australia, but jobs in the Americas will not be affected.

The company said the decision was not an easy one, but necessary amid tumbling oil prices.


7 posted on 12/16/2014 5:26:11 AM PST by thackney (life is fragile, handle with prayer.)
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To: thackney
How myopic to suggest that oil industry jobs are enough to keep an economy growing. Ya, these are good jobs but insignificant to the millions of jobs cheap oil will create. Good grief, all we need do is look to our history.
8 posted on 12/16/2014 5:26:23 AM PST by iontheball
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To: iontheball

“Good grief, all we need do is look to our history.”

:::::::

Reality and the past are just obstacles to the radical left and the leftist media....the GOOD in anything for America is always avoided.


9 posted on 12/16/2014 5:29:26 AM PST by EagleUSA (Liberalism removes the significance of everything.)
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To: iontheball

Yes, look at history. When have we had significant job growth during a global recession?


10 posted on 12/16/2014 5:30:05 AM PST by thackney (life is fragile, handle with prayer.)
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To: Doctor 2Brains
EVERYTHING should be MUCH MORE EXPENSIVE!!! Then the economy would REALLY take off.

Somebody tell John Boehner and Mitch McConnell all we need are more regulations, more legislation, higher taxes, and more spending and they can really make the economy take off.


11 posted on 12/16/2014 5:30:45 AM PST by nathanbedford ("Attack, repeat, attack!" Bull Halsey)
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To: thackney

and create millions more in other sectors


12 posted on 12/16/2014 5:31:13 AM PST by babble-on
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To: babble-on
and create millions more

Millions of more jobs? Really? In a global recession market?

How much has your spending increased due to the $1 drop in gasoline prices? So we should be seeing already increases in retail sales?

13 posted on 12/16/2014 5:33:57 AM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

In terms of the Marcellus Shale, do you know the approximate production cost$? Natural Gas now $3.73. Just curious where the cutoff is?


14 posted on 12/16/2014 5:35:46 AM PST by donozark (Andrea Chalupa:"Ukraine is fighting for survival. The UN is fighting for relevancy.")
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To: Doctor 2Brains

I don’t know, but if that makes food prices a little cheaper, I am for it. I would hope that a lot of food farming gets more local too.


15 posted on 12/16/2014 5:37:34 AM PST by Morpheus2009
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To: thackney

Since gas prices have been falling I have been driving more to see family and friends. So I actually have been buying more gas.


16 posted on 12/16/2014 5:37:48 AM PST by Hyman Roth
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To: thackney

The 10% cut back probably would have happened anyway. The oil industry is using the market to justify some trimming and excesses.


17 posted on 12/16/2014 5:40:10 AM PST by Keen-Minded
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To: thackney

That didn’t take long.


18 posted on 12/16/2014 5:40:16 AM PST by CPT Clay (Follow me on Twitter @Clay N TX)
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To: thackney

Crashing Oil Prices Will Be Terrible ONLY For A Tiny Part Of The US Economy

http://www.businessinsider.com/energy-investment-a-small-share-of-gdp-2014-12

The long economic history of America has been one of displacements with loss of jobs in an area/or the nation and outdated and no longer needed skill sets. We call these eras, recessions.

Later, there is a positive economic shift up with increased jobs (with the exception of the Obama era) often in different geo areas and different needed skill sets. These eras are called economic booms or growth eras.

We get into trouble in geo areas and as a nation, when we try to $crew around with this reality. The ups and downs and dislocations and the following economic booms, which have made us the long lasting economic power we have been.


19 posted on 12/16/2014 5:43:15 AM PST by Grampa Dave (The Democrats, who run America are too old, too rich, and too very/very white elitist losers!.)
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To: Hyman Roth

The more we use the higher the price will go.


20 posted on 12/16/2014 5:43:35 AM PST by Dusty Road (")
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