Posted on 01/07/2015 1:49:20 AM PST by SoFloFreeper
In an effort to deal with low gas prices and declining patronage of its tubular goods for exploration projects, the United States Steel is laying off 636 workers from its Lorain Tubular Operations – starting from March 8 through to May.
(Excerpt) Read more at microcapobserver.com ...
I’m assuming that ‘Tubular Operations’ refers to pipe making. Am I missing something?
Just one of the first ripples of low oil prices.
But hey, at least it won't cost them so much to drive to work, right? (/sarc)
“declining patronage”
Odd way to refer to a drop in sales.
Classic example of the fact that there is absolutely no economic event (with probable exception of all-out nuclear war) that doesn’t have both losers and winners.
Example: Used to live in SE Idaho, where they grow so many potatoes. Lots of big homes out in the country. Turns out most of them were built during the 30s, when most of America was deep in Depression.
You see, people still had to eat, and potatoes were one of the cheapest foods. Therefore, potato growers did very well during the 30s.
My liberal boss is of the opinion that policies should be designed to benefit everyone. The problem with this lovely theory is of course that there are no such policies. Any conceivable policy has both winners and losers.
People just don’t realize just how broad the oil and gas business reaches. Cement manufacturing, valve manufacturing, wire and electrical components, trucking and even fuel suppliers. The list gets longer as we go.
Are people here really complaining about falling oil prices?
As someone has already pointed out, economics cause winners and losers. In this case, the winners far outnumber the losers.
I was thinking the same thing. Same old song and dance: price high, everyone complains; prices low, everyone complains.
Goldilocks has nothing on the American public. Everyone's got an axe to grind. What happened to this country?
You are correct. Guess which industry is now buying less pipe for new oil wells?
U. S. Steel’s Lorain Tubular Operations near Cleveland, Ohio, manufactures high-quality seamless pipe for the construction, oil and gas exploration and production industries. The facility has an annual production capability of 780,000 net tons. Major product lines include: oil country tubing; casing and drill pipe; standard and line pipe; and coupling stock.
All the way down the chain to the maids that clean hotel rooms in Williston... and the delivery truck making bi-weekly deliveries of Budweiser with Clamato to one of the Stripes convenience stores in the Permian Basin.
The ONLY saving grace to the “Øbama economy” has been energy (despite Ø) and that is starting to see the affects of Saudi world market manipulation.
U.S. Steel to lay off 142 in Houston
http://fuelfix.com/blog/2015/01/06/u-s-steel-to-lay-off-142-in-houston/
U.S. Steel said Tuesday it will lay off about 750 employees from two plants that make tubular steel, which is used in oil and gas drilling.
The company said it will shut down a plant in Lorain, Ohio, in March and lay off 614 workers. It said the move is temporary. U.S. Steel will also lay off 142 employees who work at a plant in Houston.
The plants make steel pipes and tubes used in drilling for oil and gas as well as construction. The Pittsburgh company said it is making the moves in response to falling oil prices and unfair competition from foreign companies.
Excerpted
In before ‘bring jobs back now. Just sayin.’’
Be sure to share all the new jobs created by the low energy prices. Historically, that has not happened.
Report: Energy jobs have led economic recovery
http://fuelfix.com/blog/2014/11/13/report-energy-jobs-have-led-economic-recovery/
Jobs in the oil and gas industry have helped U.S. employment numbers claw back from steep losses over the last decade, according to a new report from the Small Business & Entrepreneurship Council. From 2005 to 2012, U.S. employers shed 378,000 jobs, but over the same period, five oil and gas sectors — extraction, drilling, operations, pipelines and equipment manufacturing — added a combined 293,000 jobs.
Employment at oil and gas operations businesses more than doubled during that decade-long span, and equipment manufacturing and pipelines each grew about 66 percent.
The report also noted that despite the attention heaped on the biggest players in oil and gas, businesses with a few hundred employees made up the vast majority of firms among the industries it profiled. In extraction, where smaller contractors dominate the oil field, 98.5 percent of firms in the industry had fewer than 500 employees.
“Are people here really complaining about falling oil prices?”
We have 39 oil and gas producing states that employ millions of people directly and many more than that indirectly. They by cars, houses, electronics, sporting goods, and about anything else you can think of that’s produced in the US. Not only that the severance tax paid to each state by the producers drops considerably and effects those employed by the states especially school systems. There’s far more losers in this than you think.
You might want to read Bastiat's "What Is Seen And What Is Not Seen"" - a core document of conservative economics - which explains this.
Unless you already understand it, and want all Americans to pay through the nose for gasoline and heating oil so that your favored industry may continue a non-stop boom.
At what level would you like to see the price of oil fixed, so that those maids and truck drivers don’t have to look for other jobs?? And who shall fix it???
“Lower oil prices put several billions more in Americans’ spendable income.”
When you’ve been laid off there is no spendable income.
White pickup truck manufacturing
At what level would you like to see the price of oil fixed?? And who shall fix it???
“White pickup truck manufacturing”
Aluminum tool box’s and black grill guards also.
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