Chart of the Day: Drill, Drill, Drill= Jobs, Jobs, Jobs
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.
CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Monday, November 28, 2011
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.
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- Possible Antidote to the Higher Education Bubble: ...
- Gales of Creative Destruction: Ten Brands That 24/...
- Average New Home Price Lowest in 8 Years
- "Jet Man" Stunts Alongside Fighter Jets Over Alps
- Following Delay of the Keystone XL Pipeline to U.S...
- One-Year ARMs Fall to Lowest Level in U.S. History
- EU Wine Cartel is "Whining" About Competition
- There's An App for That: Mobile Baggage Tracking
- Credit Card Delinquency Rate Falls to 16-Year Low
- Quote of the Day: Pro-Market vs. Pro-Business
14 Comments:
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
what the hell, dont they understand that jobs are more important than clean water?
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.)
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.
It's exciting to think that we could increase energy output enough to keep adding jobs & keep reducing foreign dependence on oil.
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...
"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
"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.
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.
"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.
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,
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.
VangelV
I could add my two cents worth, but my last comment was deleted.
Thanks for the informative writing. Would mind updating some good tips about it. I still wait your next place.
You might still wonder why we're so sure about fast delivery for RS Gold. Large instock and a professional instock team can take the World Of Warcraft Gold. They will replenish the instock after one order is delivered, so our stock is always ready for your order to WOW Gold. Every penny you spend here is completely worth it!
Post a Comment
<< Home