Musings: Oil Patch Unemployment Is Challenge For Industry's Future
To gain greater appreciation for where the layoffs are occurring, Exhibit 9 shows a plot of the four-week average for first time weekly unemployment applications in the leading oil shale states. The count reflects those claims filed in Colorado, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. The creator of the chart, which spans the period from 2000 to mid-March 2015, says he should have included West Virginia in the totals because after further research he learned that most of the state’s territory overlays the Marcellus and Utica shale formations that span much of Pennsylvania and part of Ohio as well. The problem in using West Virginia’s figures is that due to its extensive coal-mining activity the unemployment figures might be overstated as a result of the downturn in the coal-mining industry.
While the four-week average of first time weekly unemployment claims in these shale oil states has jumped up since October 2014, if we look at the 2008-2009 pattern, the recent rise seems to have only matched about 20% of that earlier increase. However, it has occurred in a shorter time span. The current increase has matched almost half of the rise from 2000-2001, but at a quicker pace. It is also worth noting that both of the earlier downturns coincided with officially designated economic recessions. This downturn doesn’t appear to show signs of being associated with a new U.S. recession, although the latest national economic statistics might belay that observation. The latest unemployment statistics for Texas show the early effects of the drop in oil prices as jobs were lost state-wide last month. If this downturn matches the 2008-2009 pattern then we have many more jobs to shed.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Managing Director, PPHB LP
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Oil Falls as US Inventories Increase
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call