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.
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 ...
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.
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.
There will be some losses in the fracking market but OPEC’s attempts to throttle it are futile.
It will be back.
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.
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.
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.
“Good grief, all we need do is look to our history.”
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Reality and the past are just obstacles to the radical left and the leftist media....the GOOD in anything for America is always avoided.
Yes, look at history. When have we had significant job growth during a global recession?
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.
and create millions more in other sectors
Millions of more jobs? Really? In a global recession market?
How much has your spending increased due to the $1 drop in gasoline prices? So we should be seeing already increases in retail sales?
In terms of the Marcellus Shale, do you know the approximate production cost$? Natural Gas now $3.73. Just curious where the cutoff is?
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.
Since gas prices have been falling I have been driving more to see family and friends. So I actually have been buying more gas.
The 10% cut back probably would have happened anyway. The oil industry is using the market to justify some trimming and excesses.
That didn’t take long.
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.
The more we use the higher the price will go.
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