OTC 2011: Energy industry has an abundance of job openings

Fuel Fix ^ | May 5, 2011 | Brett Clanton

[thackney]

The silver lining to the dark cloud of high oil prices.

But is a darn big dark cloud...

[the_devils_advocate_666]

Our local paper is always running a bunch of ads for truck drivers. If I’m ever unemployed the first thing I’m going to do is get my CDL.

[the_devils_advocate_666]

Our local paper is always running a bunch of ads for truck drivers. If I’m ever unemployed the first thing I’m going to do is get my CDL.

[Roccus]

Back in ‘08 it was $140 oil that drove gas to $4/gal. Why did gas surpass $4/gal recently with oil at only $113/bbl?

[stefanbatory]

that is exactly my plan. however, may I suggest that you go to a school that guarantees you a job upon graduation? most places wont hire you without experience...which of course, you cant get without being hired and working somewhere...

[Buckeye McFrog]

Not if you’re a coal miner in West Virginia.
Obama and his EPA have seen to that.
(how ya likin’ yer Manchin vote now???)

[thackney]

Remember the most of our oil is imported and the the quoted price of oil in the US media is West Texas Intermediate delivered to Cushing, Oklahoma. That is what the basis is for the NYSE market.

In 2008, WTI traded at a premium over the “Global” oil price. Now, due to some new domestic production (like Bakken and other oil from Shale formations) and pipeline bottle necks, WTI is traded at a discount to the “Global” oil price.

The following are a few months behind, but if you compare the prices from early this year, to 2008, you will see the difference between the relative prices of the Quoted WTI and the average price of oil that the refineries purchase.

http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F003048623&f=M

http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R1200____3&f=M

http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R1200____3&f=M

http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R0000____3&f=M

The result is average price refineries are paying now is early the same price today as they were back then to bring in the oil.

The average price for a barrel of oil purchased by US refineries in July 2008 was 129.03. The quoted price in the Media now and then is WTI delivered to Cushing next month.

Keep in mind most oil that is used in our refineries is not bought one month in advance on the NYSE, it as an average for more long term contracts.

[thackney]

No doubt. The OTC is the Offshore Technology Conference. It is going on now and OTC reports focus on offshore oil and gas with some being applicable to onshore oil and gas.

Media reports like to bandy around “Energy Projects” as the latest hot buzz word. But they really mean oil and gas for this and many other articles.

[Roccus]

Thank you.

[Ben Ficklin]

Get a job driving an oilfield truck. One you've done that for a while, you can get a job driving a Halliburton bulk cement truck. Once you've done that for while you can get a job driving a Haliburton cement pump truck which means you are the pump operator as well as the driver. Once you have done that for a while you are qualified to be a Halliburton cementer and you get to drive a pick-up.

And once you done that for a while you can go offshore or overseas.

[thackney]

Glad to. It is hard to convince people unless they are willing to look at multiple pieces of data. It is a strange situation to have WTI trading at such a discount to other prices when traditionally it has been at a premium.

[Roccus]

Fellow I know is driving a water truck for fracking. His 80-100 hour weeks were cut back to 60 last week.

[thackney]

You may also note that as bad as prices are today, they have not yet reached average July 2008 prices.

http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPMR_PTE_NUS_DPG&f=W

Almost, but not quite. We are now about the same as the end of May 2008.

[Roccus]

In ‘08 the price of gas never reached $4 around here.....close, but topped at about $3.90. Today it is $4.20 here in North-Central WV.

[thackney]

Interesting. California is still about 30¢ behind their 2008 peak.

http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPM0_PTE_SCA_DPG&f=W

[Roccus]

http://www.westvirginiagasprices.com/index.aspx?area=Buckhannon

[thackney]

There are definite difference in areas, and not the same differences as usual.

[VeniVidiVici]

“We’re definitely back in heavy growth mode,” said Billy Stein, recruiting manager for Aker Solutions, a Norwegian engineering and construction company with offices in Houston.

Well, I'm sure the Democrats will take care of THAT soon enough.

[Roccus]

Charleston is always higher than my rural area. However, WV taxes are .155/gal LESS than CA......it just doesn’t make sense to me.

[thackney]

I would guess WV doesn't have enough competition in their market based upon the following curve.

Your area seems to jump up quicker and fall back slower than the average. I guess your regional difference is due to local retailers and/or wholesale suppliers.