Monday, November 28, 2011

Chart of the Day: Drill, Drill, Drill= Jobs, Jobs, Jobs

The chart above displays monthly "natural resources and mining" employment levels in North Dakota (blue line) and Pennsylvania (red line) back to 1995. After more than a decade of flat employment levels for energy-related jobs in both states, employment levels recently have been booming, along with the Bakken oil boom in North Dakota and the Marcellus natural gas boom in Pennsylvania. 

Update: See recent CD post featuring a study predicting that Ohio’s natural gas and crude oil industry could help create and support more than 200,000 Ohio-based jobs

14 Comments:

At 11/29/2011 3:15 AM, Blogger M. said...

Get this:

http://bismarcktribune.com/news/state-and-regional/helms-says-epa-could-halt-fracking-in-oil-patch/article_fe9a3284-18b9-11e1-ba39-001cc4c03286.html#ixzz1f2yb7Tc0

 
At 11/29/2011 8:51 AM, Blogger rjs said...

what the hell, dont they understand that jobs are more important than clean water?

 
At 11/29/2011 9:22 AM, OpenID voxrationalis said...

Strange that my comment last night was removed. It couldn't be because I noted that these two examples of the enormous benefits of expanded domestic drilling have added all of 25,000 direct jobs. Total.

(cont.)

 
At 11/29/2011 9:28 AM, OpenID voxrationalis said...

Nah, that couldn't be it. Must have been where I wondered, due to repeated hyping of relatively small economic effects, if perhaps Mr. Perry is being compensated for his advocacy.

Which, by the way, wouldn't be unethical even in printed media (according to Peter Ferrara).

Kind of a strange reaction, though - deleting the post rather than responding. I mean, if the notion is as absurd as it should be, one might take the opportunity to deride a critic like me as delusional or paranoid.

Or perhaps I'm just delusional. Or paranoid.

 
At 11/29/2011 9:40 AM, OpenID moneyjihad said...

It's exciting to think that we could increase energy output enough to keep adding jobs & keep reducing foreign dependence on oil.

 
At 11/29/2011 9:40 AM, Blogger juandos said...

re: Helms says EPA could halt fracking in oil patch

Just a few more 'job notches' courtesy of the job killing Obama administration...

"what the hell, dont they understand that jobs are more important than clean water?"...

What's even more unbelievable there are loons out there that think the federal government knows what they're talking about and or the 'parasitic bureaucrats' don't have an agenda of their own...

 
At 11/29/2011 11:17 AM, Blogger Che is dead said...

"It couldn't be because I noted that these two examples of the enormous benefits of expanded domestic drilling have added all of 25,000 direct jobs. Total." -- voxrationalis

Yeah, you're just too smart for us all.

"... a portentous study was released by the Ohio Oil & Gas Energy Education Program containing an analysis of the near-term economic impact of the development of oil and gas from Ohio’s share of the Utica Shale formation -– located several thousand feet below the surface. Let’s start with the conclusions as to what this will mean for just the state of Ohio by 2015: 200,000 jobs, $12 billion growth in overall wages, and a $22 billion increase in state economic output" -- Forbes

"Penn State recently finished its third study documenting the development of the Marcellus Shale and its economic impacts on Pennsylvania and the United States ... The employment in the state jumps to +336,000 jobs for 2011-2012. And $2.6 billion generated in additional tax revenues during 2011-2012." -- Marcellus Shale Economic Impact, Bigger Than We Thought

 
At 11/29/2011 11:25 AM, Blogger Che is dead said...

"what the hell, dont they understand that jobs are more important than clean water?" -- rjs

I didn't realize just how appropriate that icon of yours was, until now. Apparently, you spend most of your time in the dark.

"One claim is that fracking creates cracks in rock formations that allow chemicals to leach into sources of fresh water. The problem with this argument is that the average shale formation is thousands of feet underground, while the average drinking well or aquifer is a few hundred feet deep. Separating the two is solid rock. This geological reality explains why EPA administrator Lisa Jackson, a determined enemy of fossil fuels, recently told Congress that there have been no "proven cases where the fracking process itself has affected water." -- The Facts About Fracking, WSJ

The article goes on like that at some length, dispelling the leftist myths surrounding fracking. Here are a couple more to get you started:

Fracking gets a clean bill of health, NY Post

Halliburton Exec Takes Swig of Fracking Fluid

Try to keep up.

 
At 11/29/2011 12:57 PM, OpenID voxrationalis said...

Hi Che -

I was just pointing out what was shown in Perry's graph. But I encourage you to dig a little deeper, and especially not to trust a source like the nameless writer of your ATR piece.

You cite: "employment in the state jumps to +336,000 jobs for 2011-2012." But if you look at the report (which ATR conveniently doesn't link to), you will not find "336" anywhere in it.

Where does the "+336,000" number come from? Look in the executive summary, third paragraph: "Employment in the state expands to more than 156,000 jobs during 2011 and over 180,000 jobs during 2012." Add these two numbers together and you get 336,000.

So I guess the unattributed writer at ATR didn't realize that the 180,000 figure is the TOTAL as of 2012, including all of the job growth between now and then. Lesson here: always question your sources.

Now, 180,000 isn't anything to sneeze at, and I'm in no way belittling that impact (though it's rather optimistic). I'm belittling the trustworthiness of your chosen source.

The underlying study (which should always be prefaced by a statement that it was funded by an industry advocacy organization) admits to using pretty rosy multipliers, though they claim these are justified. I don't have any more time to look deeper. By the way, these are exactly the same multipliers that are derided by critics of government stimulus spending.

 
At 11/29/2011 2:51 PM, Blogger Che is dead said...

"Add these two numbers together and you get 336,000." -- voxrationalis

It's true that the ATR writer failed to link to the source and mistated the 2012 jobs totals. It's also true that the authors of the study claim that the potential for jobs supported by the Marcellus natural gas boom in Pennsylvania climbs to 250,000 by 2020. So, a little more than the 25,000 total that you mocked in your initial post. The economic potential and the resulting jobs are real and substantial.

 
At 11/29/2011 3:17 PM, Blogger Todd said...

Mark,

Shale gas has a history of boom and bust. Do you have a summary (or a link to one) giving reasons why this shale oil/gas boom will be different?

Thanks,

 
At 11/29/2011 3:32 PM, Blogger VangelV said...

Shale gas has a history of boom and bust. Do you have a summary (or a link to one) giving reasons why this shale oil/gas boom will be different?

Short answer is no. Mark has yet to explain why he believes that a sector that is chewing through capital to increase production of products that are sold at a loss is sustainable. He has yet to explain why we should ignore the reality in the 10-K statements and the conference calls. Or why we should join the party and participate in the next bubble being blown.

Of course, Mark could be doing us a big favour. After all, there is a huge amount of profit to be made when a bubble pops. This one should be no different.

 
At 11/29/2011 8:36 PM, Blogger westexas said...

VangelV

I could add my two cents worth, but my last comment was deleted.

 
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