How Has the Recession Impacted the Oil Industry?
Posted on 04. Jan, 2010 by Jaron Miller in Business, Economics, Oil Industry
Oklahoma Oil Well
The Oil Industry takes the Heat
A call for change in the oil industry has been resounded loudly across the nation and the halls of Congress: “We need to create renewable energy to replace oil”, “we need more wind & solar energy”, “we must become independent of foreign oil”.
Did you know that less than half of every barrel of crude oil is turned into gasoline? The rest is used to make over 6000 other products that we use everyday. The following is a small list of some of the most common uses for petroleum products: Small list of petroleum products. How many can you think of?
Impact of Oil Industry on our Society
When we look at the impact of how the recession has affected the oil industry, we have to look at all the industries that the oil industry affects. When you read in your local news papers or listen on the radio that consumers have bought fewer disposable items this year, or just fewer products as gifts this year, like: basketballs, footballs, fishing rods and lipstick – those sales are affecting the oil industry and the millions of people who are employed by the selling of products that are made from petroleum based products. If CD Player sales are down – so is oil production – so is labor to make CD Players, and perhaps somebody was layed off this year because CD Player production was down.
As in any recession, not any one facet can be seem independently from another. How, one might ask, can the loss of sales in the winter sport industry possibly have negative consequences for the oil industry? Think about it: Skis are made from oil based raw material. Fewer skis are purchased, because not as many people can afford their winter vacation. Not only are those at the manufacturing plant affected, but so are, once again, the sales clerk in the sport article industry; and really anybody to do with winter sports: the hotel concierge, the snow plow driver, the laundry service providing clean linen for hotel guests. Fewer customers all around equate to reduced purchasing power all the way around, coupled with unemployment mixes into an almost disastrous cocktail to deepen the recession.
When one product changes the fabric of society
Oil has been around for a long time and will continue to play an integral part of our future. No matter how much there needs to be change, change will not happen overnight. There is no quick fix to reduce our dependence on oil; it is too ingrained in our every day lives. Perhaps within 50 years we will see new products and technology that will help us replace all of the other consumables that we use that are made out of petroleum. The recession has changed the way we purchase products and the amount of products that we consume, but they are all tied together. One area touches another.
Until that day arrives, one company, Miller Oil Field Equipment and Repair, is striving to do their part in helping the oil field industry. They believe if they can help domestic oil rigs and oil drilling equipment run as smoothly and efficiently as possible they will produce more domestic oil and support American jobs and build the U.S. economy.
Are All Companies Affected by the Recession?
Posted on 01. Jan, 2010 by Editor in Economics, Finance
The following article is reprinted with permission:
“What Companies Are Least Affected by the Recession?
Author: Joseph Shalaby
The recession creates a huge impact on many companies from all sectors of the business world. Each week brings news of banks capsizing, companies closing their doors, major retailers downsizing the number of their locations, and more. It’s a cause-and-effect scenario that has people spending less money as they either scramble to create a savings account, pay off escalating debt, or meet the ever-rising cost of daily living. In turn, businesses and companies around the world begin to slump as sales falter.
While it is certainly true that many companies are struggling to stay vibrant or even just to make ends meet, there are those companies and businesses that seem to be holding their own. In fact, some of these companies are even experiencing an upswing in sales as they pick up new customers.
Companies that Sell Basic Necessities Survive a Recession
In particular, companies that manufacturer the basic necessities of life are least affected by the recession. People still need to eat, wash their laundry, clean their homes, practice personal hygiene, and feed their pets. Discount giants such as BJs, Costco, and Aldi continue to open their doors week after week as consumers arrive to purchase necessities and simple pleasures. Discount stores such as Walmart, Kmart, Kohls, Target, and discount pet stores continue to sell to loyal customers as well as new ones looking for less expensive goods than they are used to buying.
Company health care giants such as Johnson & Johnson continue to see profits despite the economic downturn. Likewise, companies producing articles for daily use such as Procter & Gamble and Kraft Foods also carry on without experiencing too much of a pinch in their sales quotas. Fast food restaurants also continue to hold strong ground against the effects of the recession as more and more people opt for a less expensive meal out.
Companies that Sell Simple Pleasures Survive a Recession
Discretionary types of spending that are the first to be given up include expensive meals or nights out on the town. In turn, the alternatives that people select to replace these activities are going to experience a surge of increased consumerism. So, as more and more people stay home to save on gas while avoiding big ticket expenses, companies selling computer hardware and peripherals, basic needs, and simple pleasures are holding their own.
Companies selling the simple pleasures in life, also referred to as guilty pleasures or sin stocks, will continue to do well as many consumers attempt to keep their spending habits under control with small indulgences. These simple pleasures include such items as gourmet chocolates, beer, alcohol, cigarettes, DVDs, CDs, and video games.
Since parents aim to keep their children happy, even in times of economic trouble, toys will continue to be another big seller. In fact, the Toy Industry states that toy companies tend to maintain their profitability during a recession, although there will be a few fallouts as not every company within an industry is going to survive. In general, the flexibility to change with the times and produce affordable toys to meet the needs of both parents and children alike helps toy companies to hang in there.
Joseph Shalaby is a leading expert in loan modifications and loss mitigation and is a Mortgage Broker in Southern California with nearly 10 years of expertise in the real estate industry. He works with the American Law Firm who is one of the largest loss mitigation law firms on the western side of the United States. American Law Firm is a prominent authority on mortgage crisis resolution, including: Loan Modifications.
Article Source: ArticlesBase.com – What Companies Are Least Affected by the Recession?”
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Residential Carbon Tax – The Next Great Revenue Stream
Posted on 30. Sep, 2009 by M.L. Zupan in Economics, Politics
Meet the NEW Carbon Tax!
The carbon tax may not be called a carbon tax when Congress gets finished with it, but a tax is a tax no matter how small. Besides, how else is the government going to retrieve some of those trillions of dollars in bailout money?
In Europe, the carbon tax is already a reality. But first, what is a carbon tax? It is a specific amount of money — let us say $25.00 — applied to individuals, based on a calculation of how much carbon emissions the government feels that you should be responsible for – your Carbon Footprint.
For more information on what a “Carbon Footprint” is, read: Reduce your Carbon Footprint – Five Painless Steps.
The average person, is responsible for approximately 11 – 25 tons of carbon emissions per/year or more being released into our atmosphere. A carbon tax would be per/ metric ton. So, if you have a carbon footprint of 15 metric tons (or commonly referred to as 15 tons of CO2) – then, every year you would pay an additional $375 per/year as your share of carbon tax. That is: 15 x $25.00 = $375.00
Calculate your Carbon Footprint using our mini carbon calculator.
If the carbon tax was only on a per/household basis – that would mean that the additional revenue to the government would be: 110,000,000 x $375 (that is if every persons emissions output was equal and there are 110 million households in the United States = $41 billion dollars. That is enough money to fund the Iraqi war for an additional 41 days.
It is only a matter of time. If Americans do not do something about their own carbon responsibility – then the government will find a way to do it for you. That is a fact of history that is continually repeated.
Cap and Trade or Carbon Tax – that is the question. For more information about what is being discussed in the halls of Congress – read the following report from Senate.gov:
It all boils down to money. But in the end – is the problem of carbon emissions and greenhouse gases really solved?
Immigration – When Working Becomes a Crime!
Posted on 13. Jan, 2009 by Editor in Economics, Feature, U.S.
A Nation of Immigrants
Immigration in 1630 - No Work, Poor Working Conditions, Hope of a Better Life
In the early spring of 1630, a small band of one hundred and eighty immigrants set sail from Plymouth, England under the leadership of Rev. John Wareham of Exeter and Rev. John Meverick. They landed and founded what was known as Dorchester, Massachussetts – which is now a part of Boston; and also founded Windsor, Connecticut five years later in 1635.
The history of immigration to this land is well recorded. People came here to escape religious persecution, to find work, to live without the threat of government stealing their livelihood away. They wanted life - without persecution; liberty - opportunity to work and provide for ones family; and the pursuit of happiness – the freedom to worship and raise a family in peace.
Liberty Enlighting the World - Call Out to the Oppressed
As late as 1883 America was still a shining hope for those who were seeking a better life from the oppressions that they were under – and the United States recognized those oppressions and called out to the world – come to America, where you can live and be free!
Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!
– excerpt from Emma Lazarus poem – The New Colossus
It was the voice of “Liberty Enlighting the World” – later to be known as the “Statue of Liberty” that called out as a symbol of hope to those who were oppressed and down-trodden.
Unfortunately that is no longer the case. Now she stands there with her words of freedom and promise of hope – a place where all men are created equal and all are welcome who desire a better life then the one they have – now she is like the little gatekeeper puppet in the movie “Robots”, who sits at the gates that are suppose to always be open, and slams the door in the faces of those who try to enter.
When Working Becomes a Crime of Convenience
The United States has turned what has made this great nation into a crime.
Immigration is not about keeping these men and women out of this country because they are stealing American Jobs. It has become about keeping them oppressed in their own countries so that American corporations can exploit their labor force without having to comply with U.S. Labor Laws. U.S. Corporations want to keep trade relations with China, Mexico, etc… in order to pay them very little and work them extremely hard. The United States created NAFTA because we love their business but we don’t want their people.
Jerome R. Corsi writes in his new book, The Lake Great USA, his theory on how the United States, Mexico, and Canada will merge together as one North American Union:
In his new book, “The Late Great USA: The Coming Merger With Mexico and Canada,” Corsi weaves a sprawling theory in which multinational companies, the Bush administration, the Council on Foreign Relations, Democratic-leaning college professors and the governments of Mexico and Canada, among others, are all working — not necessarily together, but in harmony — to create a “North American Union.” This NAU, Corsi says, will be similar to the European Union, breaking down national boundaries, establishing a single North American currency and potentially even leading to a rewriting of the Bill of Rights.
What about U.S. Job being taken away from Immigrants?
What about them? How many Americans are fighting for orange picking jobs? How many Americans are willing to work hard at a landscaping job – landscaping doesn’t pay that much to the average American who has to keep up with the Jones.
What about the illegal workers who are putting a burden on the health, medical, state and local taxes industry? If they were legal – made U.S. Citizens, then they would pay taxes, pay for valid drivers licenses, pay medical care and become model citizens. They would also get paid legitimate wages and employers who do exploit non-legal immigrants would be forced to pay fair and equal wage.
In an article posted by The Onion – Illegal Immigrants Returning To Mexico For American Jobs; a young man returned to Mexico so that he could work for “Maytag” as a spot-welder for $22.00 per/DAY! Other companies that have set up manufacturing plants in Mexico include: Hoover, GM (is building a new plant in Mexico – perhaps with new bailout money), Whirlpool, U.S. Manufacturing Corporation, plastic manufacturers, tool & die companies, to name just a few.
Manufacturers can expect to pay a wage of approximately US$2.50 an hour for unskilled work, although wages can vary in different regions and cities. Compare that to some Asian countries, where business operators pay less than US$1 an hour in wages, Mexico represents smaller cost savings.
The New York Times reported in an article on Jan. 12, 2009; Push on Immigration is Said to Shift Focus – that immigration crimes have increased by over 70,000 last year. The crime of hope, of a better life, of a hard, honest days work, of wanting just a little more for your family – increased by over 70,000 people.
Perhaps the United States should look at the individual that wants to come to America a little differently when deciding whether or not to allow them to stay – and perhaps the United States should make it easier to become Citizens? These are questions that will undoubtedly be discussed during this next presidency.
Next: we will look at the definition of a “Crime” and see if these thousands of people should be labeled “criminals” – or just “desperate”. We will take a closer look at conditions in Mexico (as our closest neighbor) to give our readers a better understanding of what these people are going through.
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Oklahoma – Fuel Prices – Feeling the Difference!
Posted on 26. Oct, 2008 by Editor in Economics
How Low Will Gas Prices Go?
Across the Nation people are enjoying lower prices at the pumps. Many people are saying: “Whew! What a relief.” According to an article by “The Associated Press” the national average (as of Oct. 26th, 2008) is $2.73 – and while that may seem like a relief from the near $4.00 per/gallon average just a couple of months ago, does it match the over 50% decrease in crude oil prices over the last two months?
Oklahoman’s have been especially enjoying the pocket book relief at the pumps. In Oklahoma City the average price per/gallon is $2.16 and at least seven station in Oklahoma City are below $2.00 – coming it at $1.99.
Although Oklahoma is feeling more relief – should they be feeling comfortable with the current prices?
Looking back at the comparison of crude oil prices in August 2005 (just before the price per/barrel started climbing through the roof) the price per/ barrel was approximately $64.00. At the same time the national fuel pump average was $2.37 according to an article published by CBS News on August 11, 2005 entitled High Gas Prices Trickle Down. Unless math has changed since I was a kid – there is still almost a forty cent average discrepancy in the price per/barrel today then in the price per/barrel three years ago. Why is that?
Prices need to come down – and the oil barons need to understand that the American People are not satisfied with $2.75 price per/gallon for fuel. Things you can do to decrease the demand for supply would be – walk once or twice a week when you normally drive, ride with a friend once a week, use the bus systems more often. By being vigilant with these things we will be letting OPEC and the other oil barons that we are not satisfied with current pricing and we are not going to stop utilizing energy saving techniques until the prices come down. So help to decrease our dependence of foreign oil and help to bring pricing back down to acceptable levels.
