Page 8 - MIN TTC 5 DEC 2015

U.S. NEWS A7
Saturday 5 December 2015

US Financial Front:

While job growth lifts most of US economy, oil patch suffers

JOSH BOAK duction running high. next several days, bringing crease hiring. He expects cession. Yet OPEC ended
AP Economics Writer One measure of the dam- them to their lowest level companies to automate its meeting Friday with
WASHINGTON (AP) — The age: Even as the overall since March 2009, said Tom more work with robots and plans to keep the oil flow-
falling oil and gasoline U.S. stock market rocketed Kloza, global head of ener- other machines. ing. OPEC will maintain its
prices that for months have up 2 percent on Friday, an gy analysis at the Oil Price “The industry will be more current production lev-
coincided with strong U.S. index of oil and gas stocks Information Service. efficient; it won’t need as els of 31.5 million barrels a
hiring have helped most tracked by the New York “There is going to be a lot many people as it did be- day, roughly a third of the
Americans. Stock Exchange fell 0.5 per- more money for consum- fore,” Bullock said. global supply. By preserv-
But they’ve come at a cent. ers to spend,” Kloza said. The world’s appetite for all ing market share for mem-
painful cost for workers in The industry’s layoffs are ex- “Whether they spend it fossil fuels has been erod- bers such as Saudi Arabia,
the energy and mining sec- pected to pile up as ener- and that leads to more jobs ed by anemic economic OPEC will continue to flood
tor: 122,300 lost jobs in the gy companies try to shore is an open question.” growth. China has slowed, the market with more oil
past year. up their finances in light of The outlook is rather differ- Europe is stumbling and than people want, which
Even as workers nationwide the sharply lower prices. ent in oil country. Japan has lapsed into re- then depresses prices.q

A pair of tanker trucks parked next to pumps at an oil-producing well in McKenzie County, N.D.

Lower fossil fuel prices have come at a painful cost: 122,300 lost jobs in the energy sector over

the past year. The November 2015 jobs report showed a sharp contrast between the overall

economy and the ailing fossil fuels industry. (AP Photo/Charles Rex Arbogast)

are earning slightly more “This is likely going to con- Since August, Texas’ un-
than they did a year ago, tinue for six months or so as employment rate has risen
average wages have tum- things settle out,” said Ken as the state has shed oil
bled 1.5 percent to $26.72 Medlock, an economist and related manufactur-
an hour for energy produc- and Senior director at Rice ing jobs, according to the
tion workers. University’s Center for Ener- Bureau of Labor Statistics.
The November jobs report gy Studies in Houston. More than 17 percent of
that the government re- Medlock said the rapid hir- the mining jobs — which
leased Friday illustrates the ing that energy companies include oil and natural gas
divide between the broad embarked on five years — have disappeared from
economy and the ailing ago as fracking unlocked North Dakota in the past
fossil fuels industry: Over- oil and natural gas from year.
all, U.S. employers added shale won’t likely return Other fossil fuels, including
a robust 211,000 jobs, and soon. There will be less im- natural gas and coal, have
the unemployment rate petus to develop fields and also collapsed in price. The
held steady at a healthy increase production as result is fewer mining jobs
5 percent. But the energy long as prices stay low. in coal-rich states such
industry, reeling from fall- For most American con- as West Virginia and Ken-
ing oil prices and weaken- sumers and companies, tucky.
ing global demand, shed cheaper energy has been Bruce Bullock, director of
11,300 jobs. an unexpected gift. Driv- the Maguire Energy Insti-
In just 18 months, oil prices ers are paying less for gas- tute at Southern Method-
have cratered from $107 oline. Jet fuel costs have ist University in Dallas, said
a barrel to roughly $40. plummeted for airlines and he expects more industry
And gasoline prices have shipping firms. Heating oil bankruptcies and merg-
plunged from around $3.70 expenses have dipped ers, both of which will cost
a gallon to $2.05. Those ahead of winter. some employees their jobs.
prices could be poised to Average gas prices na- Even if prices recover, Bull-
fall further, with OPEC de- tionwide are likely to slide ock said he doubts that
ciding Friday to keep pro- below $2 a gallon in the the industry will quickly in-