Posted on 01/20/2015 12:08:41 PM PST by Rodamala
ping
Baker Hughes to lay off 7,000 in coming months
http://www.freerepublic.com/focus/f-news/3248679/posts
Posted on 1/20/2015, 7:37:26 AM by thackney
I can’t believe all the doom and gloom articles I’ve spotted in the last few weeks about layoffs by drillers, oil service firms, and related industries, not to mention bankruptcies and reorganizations of many businesses involved in oil production, as world oil prices continue to slump. Yes, those things will happen, and I wouldn’t want to be a roustabout or heavy equipment hauler who just recently was hauling down six figure annual pay with overtime and is now worrying about pink slips.
But these things will end, and the oil will still be in the ground. The companies who come through the current belt tightening will be stronger and leaner than when the siege began, and will have acquired rigs and skilled workers from outfits that went belly-up, while shedding some of their own marginal operations and workers.
Meanwhile, consumers are even now enjoying a $3-4,000 annual windfall, and the auto industry is already seeing increased sales, including sales of bigger, much safer cars. People are going to start planning vacations, dining out more frequently, and buying some new furniture, so jobs lost in oil and oil service will reappear elsewhere in the economy.
In short, unless you work in oil, relax. The drop in oil prices is providing the American consumer a much larger boon than any tax reduction they’re likely to see, even if we do elect conservatives to control the White House and both houses of Congress in 2016.
What most don't realize, is there are more indirect jobs created outside the oil industry due to their purchase of equipment, material and labor, than direct hires. Steel mills, cable manufacture, valves, buildings, etc all get impacted.
For example:
Caterpillar is latest victim of sliding oil price
http://www.freerepublic.com/focus/news/3247811/posts
The maker of diggers and dozers’ direct exposure to the sector is equal to about $6.5 billion, or 12% of revenue, while its indirect exposure may be as much as 15% of revenues
Huge profits. Layoffs.
Greed.
Does Computers include cell phones? Otherwise it makes no sense.
Chart Note:
Based on company filings with the federal government as reported by U.S. Census Bureau for U.S. manufacturing industries
Looking here:
http://www2.census.gov/econ/qfr/current/qfr_pub.pdf
It appears the full name of the category is:
Computer and electronic products
Which includes:
- Computer and peripheral equipment
- Communications equipment
- All other electronic products
I'm not denying that some will suffer from lower oil prices. But in a dynamic economy, more will benefit. It will cost less to manufacture and transport almost everything, and that too will work to the advantage of everyone.
Crying for relief from low oil prices is nothing more than special pleadings on behalf of a narrow special interest: oil producers and related industries and their workers. Those special interests have been rolling in the clover for the last half dozen years or more while the rest of us have struggled to make mortgage payments and keep food on the table. I think Schlumberger and T. Boone Pickens will survive a little belt tightening while the rest of us enjoy the jingle of a little more change in our pockets after paying for gasoline and heating oil.
Steel mills, cable manufacture, valves, buildings, etc. will get all of that business or more back from increased sales of cars, washing machines, and all of the any goodies American consumers will be purchasing using extra funds left over after filling their gas and heating
. . . . . .
While wishful thinking sounds good, in every past gasoline price drop, there has never been an economic boom. What do you see different this time compared to the past?
Don’t forget that part of the cause of the price drop is slowing global economy that will also be felt here.
There will certainly be sectors that gain. There may be some overall gains. But never has gasoline price drops lead to a booming economy because that price change is not the only impact.
I will bet his rating is dropping pretty quickly in Houston. Not that it was ever THAT high.
Did you read the article? Or did I miss the sarcasm tag?
It's all just catching up now.
I've done well...energy wise.
It's going to be hard...in the coming months.
Cheap energy means low demand....
Boom and bust...seems to never end.
You must be a Democrat..............
Without energy...products do not get built. Period.
Crying?
I could careless about a buck a gallon of gas either way....I need to do my business..and that is a cost of business.
The problem with your thinking..is possibly you don't understand supply and demand.
Demand fuels the market.
And demand is not there right now....WORLD wide.
I'm concerned with that....You might ought to be, also.
post 16 is right on the money.
I do a good bit of driving. But I’ve thought about how much a driver saves, this month, say, compared to six months ago, if he covers a hundred mile daily work commute.
Five hundred miles a week, divided by 20 mpg, puts him at 25 gallons. Twenty five times, generously, $2.00 in the price difference....gives you fifty bucks a week.
It’s not throwaway money but it is not going to buy a new car. It’s a night out for a good dinner, it’s a coat you’ve been wanting to buy, after half a year it will buy you a good rifle or shotgun.
But a lot of other things will change in American life if the world economy does decline and the oil bust continues.
I’m sorry. You missed that one.
Bookmark greed
Thanks for posting
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