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This is what ‘Saudi America’ looks like {McDonalds is offering a $300 signing bonus}
MSNBC ^ | 12/08/2012 | Chris Hayes

Posted on 12/10/2012 8:37:58 AM PST by thackney

Right now in Dickinson, North Dakota, the local McDonalds is offering a $300 signing bonus to new employees. You heard that right, with a 7.7% nationwide unemployment rate, and persistently sluggish job growth and wage stagnation, the labor market of this one town in North Dakota is so tight, and employers are so desperate for workers, they’re offering a signing bonus for a job slinging fries.

And it’s not just Dickinson, unemployment in the entire state is 3.1%, GDP growth for the state is 7.6%, and housing there is in such short supply that one bedrooms are renting for more than $1000. What economic miracle has taken place in the plains, you might ask, to bring this about?

The answer is the Bakken formation, a subterranean rock formation that contains a thin, and until recently, more or less inaccessible, sea of oil within relatively hard rocks. But a revolution in the technology of extraction (including fracking) has helped unlock the oil in the Bakken and some speculate that the amount of extractable oil from just this one geological formation alone could surpass the reserves of all of Iraq and Kuwait combined. Production from the area has skyrocketed, and this new production boom is driving a larger national trend, pushing U.S. oil production up for the first time in a generation, and arresting what many believed was a permanent decline.

Compare the growth in crude-oil supply among a number of non-OPEC countries, and what you see is the U.S. obliterating the rest of the world. Employment in oil and gas extraction has surged to the highest level since 1992, (though we should note they still provide a tiny, tiny sliver of the country’s jobs, just under 200,000).

Our net oil imports are cratering. And now a number of analysts are predicting...

(Excerpt) Read more at tv.msnbc.com ...


TOPICS: News/Current Events; US: North Dakota
KEYWORDS: bakken; energy; oil

1 posted on 12/10/2012 8:38:09 AM PST by thackney
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Image and video hosting by TinyPic

Crashing seems a bit over-reaching to describe the chart above. It does look more impressive when you combine the reduced crude imports with the increased exports of refined products.

Image and video hosting by TinyPic

We achieve the above by actually importing more crude oil than we need ourselves, refining it while keeping the jobs and refinery capacity in the US, then exporting the higher value refined products.

2 posted on 12/10/2012 8:42:42 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

That’s pretty typical of what’s happening in these Oil Patch areas. Tons of economic growth and a very small local population to take advantage of it.

I’ve heard of Tim Hortons in some parts of Alberta paying over $20/hr. for someone to pour coffee for oil workers.


3 posted on 12/10/2012 8:48:28 AM PST by Buckeye McFrog
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To: thackney

Does the US oil/gas industry only employ 200k?

That seems kinda low to me.


4 posted on 12/10/2012 8:50:11 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: thackney
US Total Gasoline Retail Sales by Refiners (in millions of gallons) is much more akin to "crashing". It ranged in the mid-50's to low 60's from 1985 until NOV 2008. It crested at 66.8 million in the summer of 2003, and was still above 60 million in AUG 2007... Now it is around 30.5 million (and was 28.39 million in January 2012).

If we aren't refining it, then someone else is, and importing it here (adding to the costs). I doubt any serious person can allege that we are using half as much gas as we did in 1985.

(Hopefully someone else can post the chart. It's embedded and interactive, and I can't figure out how to post it here.)

5 posted on 12/10/2012 8:55:56 AM PST by Teacher317 ('Tis time to fear when tyrants seem to kiss.)
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To: Beagle8U
As I understand it, that is direct hires, people working for an oil/gas company.

Breakdown at:
http://bls.gov/oes/current/naics3_211000.htm

By that definition, I would never have been counted in those numbers after decades in the industry. I always worked for someone like an engineering firm with an oil/gas client. For us, there are dozens of engineers/designers/procurement/etc people for every client engineer.

If you work at a factory that makes pipe for the oil/gas industry, you would not be counted in those numbers. Lots and Lots of indirects for the directs.

6 posted on 12/10/2012 8:59:40 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

I think if they counted it like they do ‘automotive industry’ jobs there would be 10x that many.


7 posted on 12/10/2012 9:03:46 AM PST by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: Teacher317
US Total Gasoline Retail Sales by Refiners

That number has been meaningless to almost everyone for a very long time. Refineries primarily make gasoline blending product that is mixed and then sold by another company. Very little product is sold directly by the refinery to the end users.

For example, your link shows 30.5 million GALLONS per day sold in September. In September, the entire US sold 8.575 millon BARRELS of gasoline or over 360 million GALLONS. Your link is to only 1/12th of the US sales.

U.S. Product Supplied of Finished Motor Gasoline
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MGFUPUS2&f=M

While there has been a drop in demand, it is not as significant as the Refiner Sales would indicate.

Image and video hosting by TinyPic

8 posted on 12/10/2012 9:07:46 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

My son was sent to Williston, ND, to do a job (oil patch). Said the local Wal-Mart had a help wanted sign on the front door. Starting pay $18/hr.


9 posted on 12/10/2012 9:15:03 AM PST by stickandrudder (Another Bitter-Clinger! God-Family-Tribe)
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To: thackney

uh oh this sounds like unbridled prosperity like what we experienced at the turn of last century. Obooba better step in and stop it quickly.


10 posted on 12/10/2012 9:15:24 AM PST by Gasshog
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To: Beagle8U
My company does engineering and construction for many different industries. So it would be difficult to accurate count which employees for our entire industry was working on oil/gas projects.

Many others are going to be like this. Pump manufactures will unlikely make pumps only for the oil/gas industry. They will have specialized models, but many components will be used for a different pump in water or other services. Not to mention the oil company will also buy water service pumps.

There is no doubt there is lots of spin-off employment when a significant increase in energy production occurs in the area. Heck, even the laundry folks and fast food hire more workers because of a boom in the Bakken and Eagle Ford.

11 posted on 12/10/2012 9:16:42 AM PST by thackney (life is fragile, handle with prayer)
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To: Beagle8U

Efficiency increases over time (if allowed to, as in normal business).

There are many other industries that employ a lot of people, most of which are low-tech. And many industries where jobs have gone overseas.

Just think of what people spend money on; food, shelter, clothing, transportation. And all those consumer-sales businesses buy from businesses that sell either exclusively to business (like industrials) and those that sell to both (like phone/data service).

The industrials, or business-to-business-only businesses, create jobs but do not rely on consumer spending in the same “money spending cycle” (i.e., “velocity of money”) to do so, like consumer goods companies do. The 1990’s were an economic “boom” time because all of the job growth from which the “boom” originated were business-to-business companies. That is, initially, we had business spending on outsourcing Inside America, giving out many fat paychecks to outside consultants without requiring corresponding consumer price increases and no layoffs (it was a capital allocation choice, i.e., the equivalent of private sector “stimulus”). Said consultants then spent and invested their earnings almost entirely inside the U.S. economy.

Oil companies are dang efficient - even though they are huge.

The stranglehold is on little companies where things like the potential liabilities stemming from Human Resources-related law, environmental regulations, capital formation, etc., create egal minefields and financial hurdles for the small business owner (it’s not simply a problem of too many “forms to fill out”).


12 posted on 12/10/2012 9:20:13 AM PST by PieterCasparzen (We have to fix things ourselves)
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To: stickandrudder

Congress should order those that are on welfare and able to work to move to North Dakota or lose their benefits. Put them on trains and send them out there.


13 posted on 12/10/2012 9:22:31 AM PST by Engedi
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To: thackney

Something productive Obama hasn’t destroyed yet.


14 posted on 12/10/2012 9:33:49 AM PST by Iron Munro (I MISS AMERICA !)
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To: Engedi
Congress should order those that are on welfare and able to work to move to North Dakota or lose their benefits. Put them on trains and send them out there.

You can lead a horse to water...........................

15 posted on 12/10/2012 9:34:01 AM PST by Graybeard58 ("Civil rights” leader and MSNB-Hee Haw host Al Sharpton - Larry Elder)
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To: Iron Munro

The Obamessiah will not be pleased with this news.


16 posted on 12/10/2012 9:48:36 AM PST by BipolarBob (Riding my stick horse grinning like an idiot.)
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To: Buckeye McFrog

A lot of the people from this area, (Eastern Wa. State) are working there, due to the high unemployment here.


17 posted on 12/10/2012 10:30:39 AM PST by gunner03
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To: thackney
Right now in Dickinson, North Dakota, the local McDonalds is offering a $300 signing bonus to new employees.

What's that, a tank of gas and one trip to the supermarket?

18 posted on 12/10/2012 10:39:28 AM PST by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Yeah, you’re right.

You can get up to $500/week in unemployment.

May as well stay home.


19 posted on 12/10/2012 10:54:11 AM PST by Fightin Whitey
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To: Gasshog

No, Obama is waiting to exploit it.

Once Boehner caves and allows the government to tax the wealthy to death, Obama will then encourage drilling for gas and oil.

The economic recovery will be credited to the socialism that Obama has enacted, not oil/gas production.


20 posted on 12/10/2012 10:54:47 AM PST by kidd
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To: Engedi
Congress should order those that are on welfare and able to work to move to North Dakota or lose their benefits. Put them on trains and send them out there.

We don't want that riff raff; non/won't work bums. Lutheran Charities are doing enough damage by importing a bunch of savage Somolians who won't/don't work.

21 posted on 12/10/2012 11:28:10 AM PST by Lion Den Dan
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To: thackney
Employment in oil and gas extraction has surged to the highest level since 1992, (though we should note they still provide a tiny, tiny sliver of the country’s jobs, just under 200,000).

What the writer missed in that note is that the jobs invariably pay more than the median household income (one job), and often multiples of it. That means disposable income on the part of the employees, which is spent, creating jobs in other sectors. The rising tide lifts all boats.

Small wonder Dickinson is having trouble finding McDonald's employees...in Williston (about 120 miles north of Dickinson) I heard the signing bonus was $500, payable after 6 months employment.

Spin-off jobs and business opportunities are by no means limited to the region, though, all sorts of goods from elsewhere come in, creating jobs and supporting businesses in other states as well.

22 posted on 12/10/2012 11:38:39 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: thackney

The Keystome Pipeline would also produce good jobs.


23 posted on 12/10/2012 11:45:27 AM PST by ridesthemiles
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To: Engedi
Congress should order those that are on welfare and able to work to move to North Dakota or lose their benefits. Put them on trains and send them out there.

ABSOLUTELY NOT!!

People have managed to come here seeking work from all 50 states and Puerto Rico, some with little more than the clothes on their back (and in their pack), find work, and make a go of it.

If you have to have Congress order them here, we don't want them, and we don't need them.

Give us instead your bright, productive, and hard-working. There's enough of a housing shortage without having to put up no-loads, and plenty of trash in their neighborhoods and other things to keep the welfare folks busy where they live now.

24 posted on 12/10/2012 11:55:46 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: Lion Den Dan
Lutheran Charities are doing enough damage by importing a bunch of savage Somolians who won't/don't work.

I thought most of them went to the Twin Cities. We getting them here, too?

25 posted on 12/10/2012 12:00:28 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: Smokin' Joe

Most have gone to the Twin Cities but Fargo seems to have a contingent and LC are moving on low income housing for Belfield and Beach. They are not saying who is to live in it.


26 posted on 12/11/2012 3:08:53 AM PST by Lion Den Dan
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