America's Energy-Based Economic Renaissance
From Fortune, "America's Energy Job Machine is Heating Up"
"Along the Texas coast it's easy to spot the effects of America's oil and gas renaissance in new hotels built in the past five years (many of them now populated by itinerant oilfield workers), in the multiplying numbers of overnight "shale-ionaires," in rising home values, expanding car and truck dealerships, and effectively full employment.
What really excites experts is that these signs of prosperity in the gulf point to a larger trend. "We call it the great revival of the North American oil industry," declares Daniel Yergin, head of Cambridge Energy Research Associates. "This is a turnaround not just for North America's oil supply, but one with global impact. It's certainly the biggest development in the world oil market of this century."
That means the oil and gas boom could make America a major player again in the world energy market and help spur the entire U.S. economy. Already, both Texas and Louisiana have unemployment rates significantly below the national average, and according to the Bureau of Labor Statistics, the West South Central region -- which includes Arkansas, Louisiana, Oklahoma, and Texas -- has the second-lowest overall unemployment rate in the country, at 7.1%. The lowest? West North Central, which includes North Dakota (with a 3% unemployment rate), where gas producers in the supergiant Bakken formation can't find enough workers to fill their shifts.
Cheap domestic energy is also good news for the manufacturing sector. "The discovery and development of North America's shale resources has the potential to be the most remarkable source of economic growth and prosperity that any of us are likely to encounter in our lifetimes," U.S. Steel CEO John Surma told the Congressional Steel Caucus in a late March hearing. It's a virtuous cycle: More drilling requires more steel, and lower energy costs give U.S. steel producers a cost edge. This at a time when the Department of Energy reports that the energy intensity of U.S. steel companies is now among the lowest in the world."
"Along the Texas coast it's easy to spot the effects of America's oil and gas renaissance in new hotels built in the past five years (many of them now populated by itinerant oilfield workers), in the multiplying numbers of overnight "shale-ionaires," in rising home values, expanding car and truck dealerships, and effectively full employment.
What really excites experts is that these signs of prosperity in the gulf point to a larger trend. "We call it the great revival of the North American oil industry," declares Daniel Yergin, head of Cambridge Energy Research Associates. "This is a turnaround not just for North America's oil supply, but one with global impact. It's certainly the biggest development in the world oil market of this century."
That means the oil and gas boom could make America a major player again in the world energy market and help spur the entire U.S. economy. Already, both Texas and Louisiana have unemployment rates significantly below the national average, and according to the Bureau of Labor Statistics, the West South Central region -- which includes Arkansas, Louisiana, Oklahoma, and Texas -- has the second-lowest overall unemployment rate in the country, at 7.1%. The lowest? West North Central, which includes North Dakota (with a 3% unemployment rate), where gas producers in the supergiant Bakken formation can't find enough workers to fill their shifts.
Cheap domestic energy is also good news for the manufacturing sector. "The discovery and development of North America's shale resources has the potential to be the most remarkable source of economic growth and prosperity that any of us are likely to encounter in our lifetimes," U.S. Steel CEO John Surma told the Congressional Steel Caucus in a late March hearing. It's a virtuous cycle: More drilling requires more steel, and lower energy costs give U.S. steel producers a cost edge. This at a time when the Department of Energy reports that the energy intensity of U.S. steel companies is now among the lowest in the world."
44 Comments:
I have a brother who still lives in Laredo and makes a living repairing and replacing printers, copiers, fax machines and the like and work has picked up quite nicely due to oil field work in and around Uvalde (three hours north) over the last few months...
He was telling me that he's been to at least a hundred office-trailers since January...
If we have so much energy, why the socialist, pinko, federally mandated ethanol program?
Some say it doesn't even generate net energy.
At the Renewable Fuels Association in DC (ethanol lobby) they must have huge posters of Eugene Debs on wall. I guess corn farmers have busts of Lenin they keep in hay lofts.
pseudo benny says: "If we have so much energy, why the socialist, pinko, federally mandated ethanol program?"...
Ask your green energy idol...
Juandos,
I'm so confused by the article you linked. Time after time, Benji has told me ethanol is a 100% GOP supported boondoggle. How can it be that his boyfriend and Ag Secretary tried to preserve the ethanol tax credit? Meanwhile, his boyfriend's GOP opponent in 2008 tried to prohibit use of federal funds to build ethanol blender pumps or storage facilities. WTF!!
Suddenly, I'm starting to doubt Benji's proclamations about the catamite GOP(Grifters on Parade.)
The thing is, every one of those ND wells that are producing now will be capped in ten years.
All those corn fields, and ethanol refineries, however, will still be producing (approx 80% more than those Bakken Wells are producing today.)
Rufus II>>The thing is, every one of those ND wells that are producing now will be capped in ten years.<<
We will soon see about that. It has been over 5 years since the boom started in earnest. Statistical distributions being what they are-if you are right-they should be starting very soon on capping some wells.
Rufus II>>>All those corn fields, and ethanol refineries, however, will still be producing (approx 80% more than those Bakken Wells are producing today.)<<<
You mean the ethanol plants will still be producing-like the one in Walhalla, ND, that ADM just shut down?
http://www.reuters.com/article/2012/02/06/adm-ethanolplant-idUSL2E8D6DUE20120206
The total capacity was sized for 10% of 150 Billion Gallons/Yr.
We're consuming about 130 Billion Gallons/Yr. That's why a bunch of oil refineries, and a few ethanol refineries have shut down (at least, temporarily.)
This is from right-wing website The Business Word.
Romney drinks ethanol, and his position on every else is a gossamer of uncertainty.
Mitt Romney supports state health insurance mandates, ethanol mandates, Big Intrusive Government
Mitt Romney used a Monday meeting with Aurora, CO, Republicans to defend state health insurance mandates while he hypocritically blasted ObamaCare, which probably is unconstitutional because it mandates that all Americans buy health insurance.
What's so disturbing is that Romney supports state mandates that residents buy health insurance. He says the states have the right to impose mandates while it's unconstitutional for the Feds to do so. He boasts that Mass. residents like their mandated health insurance, which has nearly bankrupted the state and its health insurers and has made it very difficult to get to see a doctor in less than two months.
Ethanol Romney supports federal mandates that we buy ethanol, which increases pollution and cuts our mileage by 20%. And he is an Al Gore global warming alarmist, which means he supports mandates that we pay higher prices for electricity, buy electric and hybrid cars and subsidize uneconomic "green" energy jobs and companies like General Electric, which lives off tax credits and government subsidies, direct and indirect.
What government mandates does Romney not like? I think he'll support any mandate that will win him votes in the Iowa and S. Carolina primaries and in the general election. General Electric probably will be one of his biggest supporters.
Romney is a Big Intrusive Government Republican, both fiscally and on social issues. He sees himself as a successful fixer. He believes in centralized planning, which has failed around the world and in the U.S. over the last 100 years or so. He blasts Obama for not creating jobs. Presidents don't create jobs, but Obama sure has killed millions of jobs by scaring consumers and employers with his anti-business rants.
In Mass., Romney pulled an Obama before Obama even showed his leadership style. Romney had to let the hard left leaders in his legislature write RomneyCare. He had no choice, because the Democrats had a veto-proof majority in the legislature, and they used it.
Romney showed that he isn't up to being president in Mass. when he proposed RomneyCare to a legislature that he knew would take his idea and turn it into the disaster that it is.
To say that 2/3 of Mass. residents like RomneyCare only shows how ignorant most consumers are about health insurance and how hard left the people of Mass. are.
That former Gov. Bill Owens, Attorney General John Suthers and State Treasurer Walker Stapleton and the Colorado GOP establishment are backing Romney is the kiss of death. The GOP establishment has a long record of backing losers in Colorado.
President George W. Bush's legacy is Obama. You can't do worse than that, but Ethanol and Health Mandates Romney is trying.
LINKS:
Mitt Romney in Colorado, talks about small biz, defends 'Romneycare,' by Tim Hoover.
Romney visits with state's business leaders, by AP.
Romney in CO: The presidential primary kicks off, where does Romney stand? Colorado Peak Politics.
Mitt Romney versus the many, by Alexander Burns.
Posted by Donald E. L. Johnson on 06/21/11 at 05:04 AM
'12 President • Permalink
Rufus II>>>The thing is, every one of those ND wells that are producing now will be capped in ten years.<<<
Do you have actual data to support this contention that you have repeated several times. Or are you just taking some internet crap?
Why don't you enlighten all of us and research the "Elm Coulee" field in Montana. This was the first horizontal Bakken play and drilling started there in 2000. Since it is your pet point-why don't you see how many of the 10-year old wells there are capped/plugged and how many are producing. I have no idea and you might be right.
Rufus-
We use about 13 billion gallons a year of ethanol, not 130 billion.
And the use of every one of the gallons is mandated through a socialist federal program that would make Eugene Debs proud.
The pinkos control our agriculture sector and have for decades.
If you like agriculture if you like the Defense Department, then you are going to love Obamacare.
Read much, Benny? I said, 10% of 150 Billion Gallons.
In other words, everyone thought that we would be using 150 Billion Gallons of Gasoline by now; but, we're not. We're using about 130 Billion Gallons.
Breaker, the answer is in This Data (compare the present to 2011)
"All those corn fields, and ethanol refineries, however, will still be producing (approx 80% more than those Bakken Wells are producing today.)"
Don't bet on it. That whole scam will fold when all incentives are gone.
The incentives Are gone, and ethanol is wholesaling for $1.10/gal Less than gasoline.
Actually, that's $1.10/gal less than RBOB. That would be about $1.20 less than "Gasoline."
"The incentives Are gone, and ethanol is wholesaling for $1.10/gal Less than gasoline."
There are still mandates, and the corn is subsidized.
There's very little subdsidy left in the corn market (a little help with their crop insurance.) On the other hand, you don't want to try and tally up all the "oil" subsidies, including, of course, a $Trillion, or so, for Iraq/Persian Gulf operations.)
The best subsidy in agriculture, presently, is the one where they pay farmers Not to Plant Thirty Million Acres.
That 30,000,000 Acres planted in Switchgrass could probably replace another 25% of our transportation fuel needs. Of course, Exxon, the Koch Bros, and the King of Saudi Arabia, and their Congressional sockpuppets wouldn't like that.
In ObamaWorld this is considered Bad Growth. Maybe even very Bad Growth.
Within a decade photovoltaics may be cheaper than buying power from the grid, including the US, UK, and Brazil. India has 30 gigawatts of diesel generators that could be replaced tomorrow. Expect US utilities to come under increasing pressure, reports bloombergs.
I have not yet found that subsidy that pays me not to plant. I will pay a 25% finders fee to whoever can get the first check delivered to me.
I'm pretty sure that obamacare will be less expensive than the Aetnacare I paid for and never got.
Lets hear it for decentralized planning.
When I hear morons railing against central planning it sounds to me just ss silly as my lefty friends who complain about corporations making short term profits.
How do you survive to get the long term profits without the short ones?
Not much of consequence gets done without someone making plans. You think Steve jobs ran apple as a democracy?
Brightsource solar power withdrew its IPO late Wed. Citing tough market conditions and reduced government support for solar projects.
"iI'm pretty sure that obamacare will be less expensive than the Aetnacare I paid for and never got"
Yaaaaaawn
You won't be seeing that Obamacare.
"Not much of consequence gets done without someone making plans. You think Steve jobs ran apple as a democracy?"
Are you really that confused about the difference between a business and government?
Ron H: "Are you really that confused about the difference between a business and government?"
I think most leftists are.
I tell the story about being on the bridge of the icebreaker Macinaw in the canal at Sault St Marie. We had fifteen or twenty people on the bridge, steering and navigating, logging events, watch standing, etc.
I looked out the bridge wing to see an ore carrier which had pulled out to pass us, in the canal.
There was one guy on the bridge with one hand on the wheel and one hand on the engine order telegraph.
I used to think that epitomized the difference between government operations and private enterprise, but I later learned that view was either wrong or incomplete.
Yaaaaaawn
You won't be seeing that Obamacare.
=================================
Probably not. I'm glad to see that the fiscal conservatives are so concerned about wasted money that they are willing to let it continue indefinitely.
hydra: "I used to think that epitomized the difference between government operations and private enterprise"
That may be a symptom. The biggest difference between government operations and private enterprise is probably this:
- government has the power of the police behind it, and thus can and does impose its will on the citizenry;
- private enterprise - where free of government interference - works feverishly to satisfy the needs of the market it serves.
"Probably not. I'm glad to see that the fiscal conservatives are so concerned about wasted money that they are willing to let it continue indefinitely."
Anyone understand that?
Paul,
"Anyone understand that?"
I didn't even try until you asked, but I think it's a claim that Obamacare would have saved lots of money.
"I tell the story about being on the bridge of the icebreaker Macinaw..."
They let you on the bridge?!?!
Ron H,
"...but I think it's a claim that Obamacare would have saved lots of money."
Well then that's ludicrous. Nobody paying the slightest attention believes that anymore. Of course, nobody should have bought into it in the first place.
"How can it be that his boyfriend and Ag Secretary tried to preserve the ethanol tax credit?"...
Well paul that's the beauty of having a meat puppet in place, its flexible...
"Of course, nobody should have bought into it in the first place."
I'm not sure anybody ever did.
Except, of course, Mr. "I don't think that cartoon is funny", and he want's others to pay for his medical treatment, so the cost doesn't matter.
Germany's largest utilities increase investments in solar as nuclear winds down.
Depends on how you measure. Ob amacare will cost more, but more people will be insured.
Let me know when that happens. You forget that one reason people GIVE the government police power is to keep private enterprise from robbing them blind.
I bought four pieces of hardware today. When I got them home and took them out of the packages to install, all four were defective.
Free of government interference, there is nothing to keep the vendor and manufacturor from just stiffing me. As it is, I am out the time and aggravation. It is only a petty theft, but do that enough times, and someone makes a lot of unearned money.
Your idea is a nice theory. In practice it is fantasy.
"I paid for other peoples health care through my premiums"...
You do that also with your taxes both state and federal hydra...
"That is what insurance is"...
Nope that is the result of federal interference in the medical market place...
"Germany's largest utilities increase investments in solar as nuclear winds down"...
Gee hydra I guess you forgot this posting by Doc Perry: First the Dutch Pull the Plug on Wind Subsidies, Now Germany Throws in Towel on Solar Subsidies
"Ob amacare will cost more, but more people will be insured"...
I think there'll even be more parasites leeching off the productive...
Right with Obama it seems the worse thing one can have is a job with a good paycheck...
"I bought four pieces of hardware today. When I got them home and took them out of the packages to install, all four were defective"...
Caveat emptor...
"Free of government interference, there is nothing to keep the vendor and manufacturor from just stiffing me"...
Sure there is hydra, don't buy of those vendors again...
"But if you don't know the difference between insurance and socialism, you are an idiot.
The difference is - wait for it - free choice. A concept you have a lot of trouble comprehending, obviously.
"Depends on how you measure. Ob amacare will cost more, but more people will be insured."
Why should I pay more for a lower level of service?
In any case, it doesn't matter. You might want to get used to the idea of referring to Obamascare in the past tense.
"I bought four pieces of hardware today. When I got them home and took them out of the packages to install, all four were defective."
Lol! Why am I not surprised. You are the poster child for Murphy's law.
Hopefully you took them back to the retailer, even though it wasn't worth your time.
Whether you believe it or not, the retailer really DOES value your business and that of your friends and neighbors, and DOES have a great deal of influence with the manufacturer.
Well, in your case maybe that's not true, but it's true of every other customer.
"I paid for other peoples health care through my premiums. That is what insurance is.
When I needed payments I got none. That is what fraud is."
And as you point out, ad nauseum, government failed you.
And STILL you call for more government protection, as if those people in government are far more angelic than those in business. Unbelievable!
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