Posted on 06/09/2018 11:41:14 PM PDT by Kaslin
Big Oil is having an incredible impact, again, in Texas. Midland, TX is experiencing such a booming shale-oil economy that truck drivers are making more than $100,000. In turn, smaller businesses are forced to either raise their wages or extend hours to retain workers. But, this successful economy has what some say are a few downsides as well. With increased wages comes increased rents and labor shortages in public positions. Regardless, the region’s industry is providing bevy of economic benefits that could last for a very long time, reports the Los Angeles Times.
Midland has an astoundingly low 2.1% unemployment rate due to the success of companies such as Chevron and Aveda Transportation & Energy Services Inc. Thanks to recent technology developments and decreased regulations, a swath of land roughly 75,000 square miles accounts for “30% of all U.S. [shale-oil] output.” Plus, “booming U.S. shale production is fueling record crude oil exports, with shipments reaching an all-time high of 1.76 million barrels a day in April.”
As these companies grow, they need more workers. In order to be competitive, some are offering truck drivers as much $140,000 a year for transportation services. This provides many Americans who cannot afford a 4 year degree to instead opt for a two year degree and a commercial driver’s license.
“A CDL is a golden ticket around here,” said Steve Sauceda, who runs the workforce training program at New Mexico Junior College. “You are employable just about anywhere.”
Other folks such as Jazmin Jimenez, age 24, earn $28 dollars working in the industry.
“It is crazy,” she said after completing a two-week training program for a well-pump checker position with Chevron Corp. “Honestly I never thought I’d see myself at an oilfield company. But now that I’m here -- I think this is it.”
Jimenez, a former government employee, is not alone. Which is causing headaches for the town’s public services. Midland currently needs to fill 100 teaching positions and dozens of bus driver positions. But, this surplus of oil has enabled the Midland government to see a 34% increase of sales-tax collections during each of the last four months. Which has the mayor, Jerry Morales, asking for a raise for government employees in hopes of attracting more.
Morales also owns a private restaurant. So many employees have left for the oil business that Morales"now issues paychecks weekly, instead of twice monthly, and offers more opportunities for overtime hours" to keep his staff on hand.
He tells his private sector workers, “If you’ll stay with me, I can give you three-quarters of what the oil will give you but you don’t have to get dirty or worry about getting hurt.”
As for his public sector workers, Morales is not quite sure how to retain individuals from leaving aside from offering the aforementioned raises which have to be approved.
Big Oil has seen booms in the region and across America before. But, the workers who have left their old jobs for Midland seem rather pleased.
“This will be my best year yet,” said Jeremiah Fleming, who used to work the shale industry in North Dakota. “I wouldn’t want to go anywhere else.”
Still, not everybody is happy about the recent change in economy.
Typically, as is happening now, residents complain "about poor service and long lines at McDonald’s and the Walmart and their favorite Tex-Mex joints. Rents soar." When, it goes bust, the wages come falling back down and those problems go away as the labor market evens out. But, as Jimenez told the LA Times, "she’ll take the money as long as it lasts."
Uh-oh, I’ll bet Nasty Peloser won’t be happy about this. A city with a booming economy and low unemployment...the horror!
Who will care for the poor and the downtrodden? Workers could just all pitch in and
instead they’re all building their own little wall,
that keeps them from being a part of it all,
and you’ve gotta be part of it all...
Damn capitalism.
Wages and interest rates must go up to rebalance the economy. That’s why recipricol tarrifs are so important until we truly have free trade. The tarrifs support the necessary higher wages.
Trying to find a motel/hotel room in that area is a nightmare. When I make road trips across Texas I have to plan to make the drive across shale country with no stops for the night.
“Trying to find a motel/hotel room in that area is a nightmare.”
Harkening back to a previous oil boom time there in the early 80s that included a construction boom. My company had a crew working a project there and I took down some material that was ready to install on the job. The crew leader had to make a concerted effort to ensure I had a room for the one night I would spend there before returning to Oklahoma. It came with a warning from our guys to be sure to shake out your boots in the morning because scorpions liked to get in there overnight. I wonder if the same goes for the hard-to-get rooms today???
“Trying to find a motel/hotel room in that area is a nightmare. When I make road trips across Texas I have to plan to make the drive across shale country with no stops for the night.”
Yeh, same with a TT or RV. Forget about finding a RV Park with an open slot to overnight. Just keep on trucking...
BIG JOBS BUMP!
of course she won’t.
How soon will we see businesses using H1 VISAS to hire cheap foreign truck drivers? Because their arn’t enough American citizens who want to do these jobs. /s
Just sickening!! Low life truck drivers making so much money while leftist indoctrinated college grads can’t find a job and have to live in their parents basements and go out and protest all day long. And to top it off, the truck drivertards probably voted for Trump!
(Just exercising the left side of my brain today)
Seriously, we were at a Flying J truck stop a couple months ago and a young 20’s something couple walked in. They were truck drivers from Colorado. They could not believe the money they were making while all their friends back home did not want to work.
Not here. My 18 year old just got his CDL to drive the big rigs.
He has a volunteer summer commitment and already has a $50,000 a year job lined up in August.
just a few years back, we arrived at Monahans Texas and learned of the activity. Help wanted signs were all over. Workers coming in with their Trailers could not find places to park them. All the RV parks were over flowing.
We staayed three days just driving around, soaking it all in. The most lasting memory is all the white pickup trucks. They were everywhere constantly buzzing around on the dirt rods leading to seeming nothingness from seeming nothingness. Most had just one person on some purrposeful mission. That was just the beginning of the fracking revolution.
Current DOT minimum age to hold a CDL is 23. I’m not aware of any changes.
What you mean is, if there actually are some new tariffs, there will be immediate inflation of goods prices and then wages.
Never in all my years would I imagine a good paying job would be a bad thing.
Thank you, Democrats.
Try timing your trips for stopovers on the weekends. A lot of the motels fill up Sunday through Thursday with the more skilled workers going home for the weekend.
My BIL has to travel to Midland and now gets a room in Sweetwater vs. 500.00 a night @ a podunk hotel in Midland. YIKES.
I do mean that, but it is important that interest rates go up. That will stabilize housing prices, avoiding another bubble collapse, and allow seniors to gain interest income.
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