I’m guess I’m not really like many in the US that are applauding the low gas prices at the pump. Since I work in the oil and gas industry I am watching, first hand (again), unrest in our industry. This time the havoc low “per barrel” oil prices are wreaking is palpable.
Way back when, in 1979, during the second “oil crisis” in the US. I was witness to similar devastating effects in reverse. I was in high school out in West Texas. I remember filling my 71 Pontiac Le Mans up on a Monday for 75¢ per gallon and watching as overnight the prices were up to $1.17 . . . and they just kept going up. The cause for those sharp upticks was geopolitical in nature. (Read more over on Wikipedia.)
In both cases, analysts’ expectations and prognostications were way off. In the here and now, sharp investment cutbacks by crude producers are not effectively offsetting what should be the positive impact of cheap gasoline on our collective consumer spending.
I read this in USA Today:
The gloom pervading the industry has intensified in recent weeks with each drip of bad news about major oil companies’ capital spending cuts, layoffs and financial losses spreading to the broader stock market and global economy. Oil companies have cut 232,000 jobs the past 14 months, according to oil producer Continental Resources, which tracks layoffs. Such losses hurt consumer spending.
Both in 1979 and now, the sad stories of layoffs; families in financial crises (losing homes and trucks); kids unable to proceed to college or having to drop out because of money woes; shrinking retirement investment portfolios’ and losing friends and family as they moved away from the oil patch in search of a job . . . These are a reality once again.
Job Search: The job search process is often protracted and humiliating. That’s right, I said humiliating. Most are prepared to make less than they were bringing in before, but in this economy the term “under-employed” is being defined in a whole new way.
Fear: I was blissfully unaware of the fear that hung over the heads of the adults in my life during the 1979 oil crises. As an adult, I hear about it weekly. The fear of “losing your job.” It reminds me of thick smoke from a grass fire. It makes it difficult to breathe and impairs your vision. You just keep your head down and try to survive.
Perspective: In 1979, my teenage perspective included 1) more of my paycheck going into my 71 Pontiac Le Mans and 2) many of my friends at church and school moving away. Pretty narrow, but I was a teenager.
I Can Do More: In 2016, my adult perspective is much more broad, my view is more cynical but the lingering sadness feels the same with one exception. As a kid, it never occurred to me that I could help with such a large problem. As an adult, I want desperately to be part of the solution – at least locally. I am contacted at least 4-5 times a week by members in my network about a job or job prospects. I can only agree to pass their resumes along if I come across open positions that “might possibly” work for them. That’s it. That is all I can do. It is so frustrating not to be able to do more and so the sadness, this time, is more deeply felt.
I guess there a couple more things I can do. You can do it as well. I can educate myself on the best possible presidential candidates, participate in the democratic process (in whatever form that takes) and vote for the person I hope can turn this country around. I will participate, even if in my old age I find the entire process more feckless each cycle. This I know for sure: The current president is just adding insult to injury by proposing increased taxes on oil production.
Last but not least, I can pray. Not near enough of that going on these days.
It is my hope that all of my oil and gas industry family and friends fare well in the difficult days ahead.
Cross-posted on LinkedIn.
