Oilfield Bust!

SORRY NOT SORRY! Have not ranted in a while.
I just happened to pass by a coworker’s office and heard Hillary Clinton talking about her stand on the XL Pipeline.  I don’t agree with Mrs. Clinton on many things; I don’t agree with A LOT of professional politicians on many things, but this just got my blood pressure up.  I hate that people that are so out of touch with the everyday lives of the majority of Americans are allowed to make broad sweeping decisions that affect their lives .I do understand that depending on how and where you were raised, this may or may not be an issue , but please at least educate yourself about what is going on.

 You oppose the XL Pipeline?  Hate drilling, fracking, refining and all it stands for?  You are enjoying the lower gas prices? Happy to see “Big Oil” get what they deserve?    Hmm….  Ok.

Before I get on my big soapbox, keep this in mind. This is info I always knew since I grew up with Oilfield family but others never seem to be aware of.  At least 48.8 cents per gallon of gas is tax.  State and Federal tax!  So when we were all paying $ 3.29 a gallon at the pump, government was getting $ 1.29 of it.  That is just using the 2012 info found at http://www.bankrate.com/finance/taxes/gas-taxes-by-state.aspx which states:

According to the American Petroleum institute, Americans pay an average of 48.8 cents per gallon in taxes. The federal gas tax is 18.4 cents per gallon, while states set their own gas taxes. Mar 23, 2012

Also, oilfield workers and their families paid the same for their gas as everyone else did.  We didn’t get a discount for having a hand in getting it to you.

Now, let’s see what the Oilfield bust means to the economy, shall we?  Starting at the personal level, the workers, the ones that do their job.  Yes they got paid well for it, THEY DID THEIR JOB!  Doesn’t everyone get paid for a job?  Get raises?  If not don’t you try to find a better job that makes MORE?  No? Really? Anyway….

According to a Forbes article from March of this year, there have been 75,000 layoffs and counting.  You can read the article here http://www.forbes.com/sites/christopherhelman/2015/03/16/oil-layoffs-itemized-75000-and-counting/.   75,000 people laid off and the majority still out of any type of work.  (Since those March numbers, in my own limited circle of acquaintances,  4 out of 5 oilfield workers are now unemployed.  )  Using the March number of 75,000 though, and 1 spouse per person, and 2.5 kids per person, let’s run some numbers.

75000 + 75000 (spouses) = 150000

75000 x 2.5 (kids) = 187500

That gives us 75000 households, roughly 337000 people immediately affected by the Oil Bust.  That doesn’t concern you though, right?  Wrong.

Those 75000 households are cutting back on spending, it’s the smart thing to do.  So let’s say they ate out only once a week and spent an average of $ 50.00 each time.   That’s  $ 15,000,000 per month not going into the Restaurant  industry.   Also, sorry to all the wait staff at those restaurants , you are now short by $ 2,250,000 per month. 

Not really economical to take a vacation while you are out of work, right?  Let’s say the average family of 4 spends $ 2000.00 on a vacation, food and lodging.  That equals out to $ 150,000,000.00 per year, conservatively, from the tourism industry.

The restaurant industry and the tourism industry now have to cut back on personnel because the demand is not being met.  Still not your concern?  I hope you are not in Sales, a Chef, Cook, Waitress, fisherman, or farmer. How about housekeeper, desk clerk at a hotel, greeter at a theme park just to name a few.  Not many people traveling so your services are no longer needed. 

OH, you work for yourself?  Good!  Sales?  Sorry, nonessential luxury items are almost always the first cuts.  Now you are not helping the economy with your extra money.  See how it snowballs?

Construction industry?  Equipment sales?  No one building, too scared of the economy.  Oh, did you help build that new construction site?  Might not get your money now, contractor can’t pay you because the store/theater / whatever decided not to build this year or worse, went bankrupt. 

Pretty bad huh?  It’s not that bad, right? 

Ask your neighbor. Ask your family.  Ask the local jewler, bakery owner, or car dealer.  LOOK AROUND FOR YOURSELF AND MAKE DECISIONS BASED ON WHAT YOU SEE NOT WHAT SOMEONE TELLS YOU!!!!

You know who isn’t bummed out by this news?  The Middle East.  Everyone is all irate when we outsource jobs overseas but they sure look the other way when we are making big bucks for countries that HATE us.  Creating jobs and wealth they use against us.  That $ 1.96 a gallon of gas sure makes the other guys sleep well too. 

This bust will hopefully boom again! Things will level out.  America is always hopeful!  In the mean time be kind, with your words, thoughts, actions!  Pray for these families.  Vote for things that will help not harm America.  Know what the difference is!  Get your AMERICA back!

Over and out!