I Got It Wrong on Oil Jobs and That's a Good Thing

[thackney]

I Got It Wrong on Oil Jobs and That's a Good Thing
https://www.bloomberg.com/gadfly/articles/2017-06-02/may-payrolls-report-oil-jobs-a-pleasant-surprise

Well, that happened sooner than expected.

Back in early April, I predicted oil-sector payroll growth would finally turn positive again in May, meaning we wouldn't see it until July, when complete numbers would be released. 

For once, I'm actually happy I got something wrong -- because that number turned positive in April instead.Payroll numbers for the oil patch were a bright spot in an otherwise lackluster May jobs report from the Bureau of Labor Statistics on Friday. The ranks of oil-and-gas extraction and support workers rose to just under 391,000 in April, 0.5 percent higher than a year earlier:

Roughnecks Return

U.S. oil and gas employment growth edged back into positive territory, year over year, in April after 25 months straight of declines

The big gains have come on the support side. Roughly 10,000 jobs were added there in just March and April, combined, coinciding with an acceleration in the U.S. rig count and Halliburton Co.'s we-can't-keep-up profit warning.

Industry revenues were buoyed by higher average oil and gas prices in April, on the back of OPEC chatter about extending supply cuts (confirmed last week) and a lingering winter. Meanwhile, wage inflation, especially for higher-paid extraction workers, slowed. So my usual estimate of the industry's wage bill as a proportion of revenue stayed steady despite the hiring spree:

[Smokin Joe]

I Got It Wrong on Oil Jobs and That's a Good Thing
https://www.bloomberg.com/gadfly/articles/2017-06-02/may-payrolls-report-oil-jobs-a-pleasant-surprise

Well, that happened sooner than expected.

Back in early April, I predicted oil-sector payroll growth would finally turn positive again in May, meaning we wouldn't see it until July, when complete numbers would be released. 

For once, I'm actually happy I got something wrong -- because that number turned positive in April instead.Payroll numbers for the oil patch were a bright spot in an otherwise lackluster May jobs report from the Bureau of Labor Statistics on Friday. The ranks of oil-and-gas extraction and support workers rose to just under 391,000 in April, 0.5 percent higher than a year earlier:

Roughnecks Return

U.S. oil and gas employment growth edged back into positive territory, year over year, in April after 25 months straight of declines

The big gains have come on the support side. Roughly 10,000 jobs were added there in just March and April, combined, coinciding with an acceleration in the U.S. rig count and Halliburton Co.'s we-can't-keep-up profit warning.

Industry revenues were buoyed by higher average oil and gas prices in April, on the back of OPEC chatter about extending supply cuts (confirmed last week) and a lingering winter. Meanwhile, wage inflation, especially for higher-paid extraction workers, slowed. So my usual estimate of the industry's wage bill as a proportion of revenue stayed steady despite the hiring spree:

Lay 'em off, hire them back after a few months (years?) for less, or hire someone else. Most field hands are as replaceable as drilling line in the minds of management. It has always been that way in a boom/bust economy.

[IsailedawayfromFR]

Lay 'em off, hire them back after a few months (years?) for less, or hire someone else. Most field hands are as replaceable as drilling line in the minds of management. It has always been that way in a boom/bust economy.

Not just management, but owners (stockholders).

What else would you have them do?  The companies have to cut costs to survive.

As a stockholder, I don't want my investment in a company to vanish by not doing so.

[IsailedawayfromFR]

Industry revenues were buoyed by higher average oil and gas prices in April, on the back of OPEC chatter about extending supply cuts (confirmed last week) and a lingering winter. Meanwhile, wage inflation, especially for higher-paid extraction workers, slowed. So my usual estimate of the industry's wage bill as a proportion of revenue stayed steady despite the hiring spree:

Since he wrote this just a couple of days ago, he could also have said some positive outlook for industry as a result of the removal of the US from the Paris Accord.  That should certainly add some growth domestically as well.

[Smokin Joe]

Since he wrote this just a couple of days ago, he could also have said some positive outlook for industry as a result of the removal of the US from the Paris Accord.  That should certainly add some growth domestically as well.

Getting rid of the EPA Methane Rule would help.

[thackney]

Getting rid of the EPA Methane Rule would help.

EPA halts Obama-era rule on methane pollution
http://thehill.com/policy/energy-environment/335777-epa-halts-obama-era-methane-regulation

The Environmental Protection Agency (EPA) has halted an Obama administration rule to cut down on pollution of methane, a greenhouse gas produced at oil and natural gas drilling wells.

The EPA on Wednesday said it had issued a 90-day stay of agency rules designed to limit methane leaks at drilling sites, as well as rules setting standards for equipment and employee certification.

President Trump ordered the EPA to reconsider the methane standards in March when he signed an executive order to repeal several Obama administration climate regulations....

[Smokin Joe]

EPA halts Obama-era rule on methane pollution
http://thehill.com/policy/energy-environment/335777-epa-halts-obama-era-methane-regulation

The Environmental Protection Agency (EPA) has halted an Obama administration rule to cut down on pollution of methane, a greenhouse gas produced at oil and natural gas drilling wells.

The EPA on Wednesday said it had issued a 90-day stay of agency rules designed to limit methane leaks at drilling sites, as well as rules setting standards for equipment and employee certification.

President Trump ordered the EPA to reconsider the methane standards in March when he signed an executive order to repeal several Obama administration climate regulations....

Good. That's 90 days, anyway. THe Stinking Congress failed to pass the Resolution that woul dhave eliminated that one. Our Democrat Senator voted with the Dems, and McCain, Collins And Graham did too, so that one didn't just get tossed.