We are hearing of tons of layoffs that are happening and are likely to happen in the near future for people in the gas an oil industries in the United Sates.
There is plenty of talk about mass layoffs and huge unemployment lines and a country going into a recession. but is this true? Will the country go broke when the gasoline companies across the country just disconnect, shutdown, and stop drilling?
You have to ask what happened when they started drilling.
Well the answer is pretty obvious.
The price of oil went up. Why would they drill more if there was no incentive? Just as you understand they will slow down drilling because of less pay off, then you have to understand they started drilling more and employing more people when the price was thick and juicy. Right?
That’s all fine and dandy. But to the end consumer when the prices go up, we have less money to spend on other things. So. Plenty of other companies went out of business and lots of people were laid off. shipping companies (18 wheeler type shipping) had to raise prices to cover their new overhead of high gas prices. So prices to a lot of shelved items that these truck would ship, had to go up so the merchant can make a profit.
Now that gasoline prices are low, people are out buying things they couldn’t afford just a few months ago. People are living their lives a bit more comfortable.
Sure the U.S. gas and oil industry is taking hit, but it seems to be the hit it needed.
The U.S. gas and oil industry has crippled the USA for the past 11 years with it’s excessively high oil prices. Now we the consumers can consume again, and the companies that produce the items that are not funded by oil can boom again.
Our local stores can pop back up because consumers can buy things. Items that are made from petroleum will be produced more because the it takes to make the petroleum will cost less. for example; plastics, paints, and plenty other items.
Though we can feel bad for the thousand people losing their jobs, we can also feel excited for the thousands who will soon be employed in other and new industries.