Hey Oilfield Guys!!

[bphillips]

I'm a pumper in a company position. I'll be around for a while...I hope. Lol.

Yep that's generally what I go do if it gets bad enough for me to not a have a rig

[KR-oldmexico]

Again it is not that big of a %. Please back up your statement with proof and not just a statement. It will help with the discussion.


I attached a link since I can't get the spacing correct.

http://www.texastransparency.org/State_Finance/Budget_Finance/Reports/Revenue_by_Source/

Tax Collections by Major Tax

from 2012 Revenue in $ % of Total
Sales Tax $25,943,807,086 26.2%
Motor Vehicle Sales Taxes $3,878,379,684 3.9%
Motor Fuels Taxes $3,221,502,038 3.3%
Franchise Tax $4,798,699,188 4.8%
Insurance Taxes $1,764,153,450 1.8%
Natural Gas Production Tax $1,495,202,962 1.5%
Cigarette and Tobacco Tax $1,598,089,091 1.6%
Alcoholic Beverages Taxes $976,893,685 1.0%
Oil Production Tax $2,990,890,113 3.0%
Inheritance Tax ($10,293,450) 0.0
Utility Taxes $434,870,937 0.4%
Hotel Tax $441,131,849 0.4%
Other Taxes $247,719,032 0.3%
Total Taxes $47,781,045,666 48.2%

Why would you use numbers and stats from 2012??????????

No one is saying that Oil is the most important industry in Texas but rather that the economy will feel and take a big hit if oil goes bust as some say! I not know why you have such a hard on against the oil business.......... You have also yet to share exactly what you do for a living........

I obviously depend on the oil and gas industry! I have invested everything I own in the service company that I own and stand to loose a lot along with the 175 people that I employ........ So please excuse my biast views and hope that the oil business finds a balance of profitable market value and more affordable fuel for the end user. I certainly hope whatever business that you are in, construction or whatever holds strong and doesn't crash along with us!.....

Good luck and God bless!

[bphillips]

Won't most jobs in the O/G industry still be there even if prices go down. What % of those numbers listed are crude oil exploration? How many of those will return to or go to NG? Production, refinery, generation will still be at same levels or higher, which i would guess is the largest percent of those jobs.

Prayers for all that are going to go thru rough times. I'm hoping technology will catch up, drive fracking cost down, and keep everyone working even at lower prices.

There would be layoffs across the board BUT that would take a crash not a slowdown. If the drilling stops though not longer after everything else will slow down. Drilling will be the first to go then on down the line in the order it takes to get to the coast. I don't see a "crash" coming just a pretty good slowdown. I could be happy with $70-$80 oil personally.

Fuel cost affects us all. My fuel bill in my truck alone is over 1k month.

[Skinny]

Yep that's generally what I go do if it gets bad enough for me to not a have a rig

It pays my bills.

[bloodtrailer28]

Why would you use numbers and stats from 2012??????????

No one is saying that Oil is the most important industry in Texas but rather that the economy will feel and take a big hit if oil goes bust as some say! I not know why you have such a hard on against the oil business.......... You have also yet to share exactly what you do for a living........

I obviously depend on the oil and gas industry! I have invested everything I own in the service company that I own and stand to loose a lot along with the 175 people that I employ........ So please excuse my biast views and hope that the oil business finds a balance of profitable market value and more affordable fuel for the end user. I certainly hope whatever business that you are in, construction or whatever holds strong and doesn't crash along with us!.....

Good luck and God bless!

I havent taken part in this discussion but have kept up with it and read most of the comments and I have seen a few say its the most important industry in Texas and the whole economy will fall with it if it does tank. Also I havent seen one person say that they want the oil industry to bust....may have missed it but I dont think so. I think we would all be happy to find a haply medium.

[KR-oldmexico]

I havent taken part in this discussion but have kept up with it and read most of the comments and I have seen a few say its the most important industry in Texas and the whole economy will fall with it if it does tank. Also I havent seen one person say that they want the oil industry to bust....may have missed it but I dont think so. I think we would all be happy to find a haply medium.

I guess I missed that some said it drives the whole economy......... But that (as I admitted earlier) could be from bias views on the oil industry that caused me not to catch those comments! No matter what, oil is big in Texas and a bust will,effect the economy in a large way in certain geographic areas.... Maybe not the metroplex areas but many, many rural areas across the state!

[Take Dead Aim]

Why would you use numbers and stats from 2012??????????

No one is saying that Oil is the most important industry in Texas but rather that the economy will feel and take a big hit if oil goes bust as some say! I not know why you have such a hard on against the oil business.......... You have also yet to share exactly what you do for a living........

I obviously depend on the oil and gas industry! I have invested everything I own in the service company that I own and stand to loose a lot along with the 175 people that I employ........ So please excuse my biast views and hope that the oil business finds a balance of profitable market value and more affordable fuel for the end user. I certainly hope whatever business that you are in, construction or whatever holds strong and doesn't crash along with us!.....

Good luck and God bless!

Sorry for using 2012 numbers. I was still working and grab the most recent info I could find quickly. I didn't see 2013 and 2014 wont be out for a few months. I was the first and one of the only few to actually post factual info and not just some regurgitated nonsense that they heard from someone else. I actually took a little time today and a bunch over the last 20 years to keep up with what happens and why. There have been many post if not most in this thread from people stating a crash to the Texas economy. Not sure how you missed them. If you will also go back and read my post I stated that I own a heavy site and utility construction company. I have employed between 10- 196 people at one time over the last 15 years. My family and I also have royalties on both oil and gas in a couple different areas around the state. I also have to different investments in actual wells. Not huge commitment on the wells but still money non the less.

So now that you know that, if you will take the time to actually read and comprehend what I have been saying you will see that I am not on either side of this battle. I am just stating what I feel is factual information. Factual in the fact that I have done actual research and time invested in my beliefs. History doesn't lie. Something that 99% of the people haven't done. If I seem curt it because I have spent a ton of time researching and trying to educate only to have people like you tell me I full of it. You can have all the biased view you want that doesn't make it the correct view though. I not here to try and change anyone's mind but rather just inform them. Some if not most in this thread want no part of it.

Again history doesn't lie. There never has been a recession/fall in the US market due to falling oil prices. Rising oil prices yes but falling no. I know we are talking Texas here so that is a little different. Yes lower oil prices will affect the Texas economy and especially those areas tied to O/G but a lot of that money does change hands. It goes out of the hands of those involved in O/G and is spread across to the pockets of all of those living in the US. Some of the money is lost forever. People in O/G lose it, the state loses sales tax dollars, town will dwindle back to nothing because all they ever count on is $ form O/G. My thought is those towns need to diversify. If they never do they will be in this same boat again. I know everyone on this site hates Austin/area but one good thing it does is bring in a multitude of types of business. You have technology with the likes of IBM, Dell, Samsung, Texas Inst. Green with solar and wind companies. Multiple gun makers and more coming. Multiple Universities. Many state employees. That is what it takes to be successful. Being a one trick pony especially when that trick is a commodity is asking for trouble. That enough for tonight.

[CoolHandLuke]

With the good comes the bad! The auto industry is about the implement the same stringent lending practices as the home mortgage industry has taken in the last few years. The irresponsible spending on the part if a lot the people be it the o&g or elsewhere has to stop. Getting an auto loan is about to be a pia as buying a new home. That is a promise!

[CoolHandLuke]

That last post was not a dig at the o&g guys. I have just seen quite a few guys griping about lifted 70k trucks being repoed. That is in any industry.

[CaptainRedbeard]

makes me laugh. I'm not even 30 and went through the last tank a few years ago. These new guys spend it faster than they can make it.

[Aggie_bowtech]

Lots of people bitter about young guys with lifted trucks. What Dave Ramsey says is...live differently now to live differently later. Not live differently like go buy the biggest truck you can right now to look cool but live more on the scrimpy side now to invest it and retire with more. Anyhow, regardless of how other people spend their money, it's not up to us to condemn them or judge them....

I thought he OPs point was great with a little helpful advice to everyone to be advised that the O/G industry won't be up and up forever. This is obviously becoming a tense topic now with the prices going down on oil. I'm not in the O/G market but I do agree that it has an affect on the Texas economy, I believe everyone gets that.

I don't like the jokes about how stupid people are by living outside of their means in just the O/G market. That's the new American way, right??? Even worse, people are talking about how they don't feel bad for them and can't wait to buy their repo'd trucks. Don't make fun of the guys working 120 hours a week that are enjoying having some credit, make fun of the people that don't work that take all of our money in welfare, etc. If I worked 120 hours a week I would probably buy a bunch of bad arse crap too!

[KR-oldmexico]

Sorry for using 2012 numbers. I was still working and grab the most recent info I could find quickly. I didn't see 2013 and 2014 wont be out for a few months. I was the first and one of the only few to actually post factual info and not just some regurgitated nonsense that they heard from someone else. I actually took a little time today and a bunch over the last 20 years to keep up with what happens and why. There have been many post if not most in this thread from people stating a crash to the Texas economy. Not sure how you missed them. If you will also go back and read my post I stated that I own a heavy site and utility construction company. I have employed between 10- 196 people at one time over the last 15 years. My family and I also have royalties on both oil and gas in a couple different areas around the state. I also have to different investments in actual wells. Not huge commitment on the wells but still money non the less.

So now that you know that, if you will take the time to actually read and comprehend what I have been saying you will see that I am not on either side of this battle. I am just stating what I feel is factual information. Factual in the fact that I have done actual research and time invested in my beliefs. History doesn't lie. Something that 99% of the people haven't done. If I seem curt it because I have spent a ton of time researching and trying to educate only to have people like you tell me I full of it. You can have all the biased view you want that doesn't make it the correct view though. I not here to try and change anyone's mind but rather just inform them. Some if not most in this thread want no part of it.

Again history doesn't lie. There never has been a recession/fall in the US market due to falling oil prices. Rising oil prices yes but falling no. I know we are talking Texas here so that is a little different. Yes lower oil prices will affect the Texas economy and especially those areas tied to O/G but a lot of that money does change hands. It goes out of the hands of those involved in O/G and is spread across to the pockets of all of those living in the US. Some of the money is lost forever. People in O/G lose it, the state loses sales tax dollars, town will dwindle back to nothing because all they ever count on is $ form O/G. My thought is those towns need to diversify. If they never do they will be in this same boat again. I know everyone on this site hates Austin/area but one good thing it does is bring in a multitude of types of business. You have technology with the likes of IBM, Dell, Samsung, Texas Inst. Green with solar and wind companies. Multiple gun makers and more coming. Multiple Universities. Many state employees. That is what it takes to be successful. Being a one trick pony especially when that trick is a commodity is asking for trouble. That enough for tonight.

I'm not sure where I've said one time you are full of it!! I've simply said that it will have a larger effect on our economy that you say. Your research is fantastic, congrats and good job, yet its 2 years out of date and a lot has happened in the O&G industry in 2 years! You tell me, but The true effect of what the oil and gas industry has on the entire economy would be hard to track...... You take out the DFW area and the the Austin area of the mix and tell me what the major contributor to the economy (housing markets/values, new car sales, ATV sales, land sales,etc) in the Houston, San Antonio, San Angelo, Midland/Odessa, Victoria and Laredo just naming the major cities. Far as all the small communities across the state that will be effected and you saying they diversify well that's a hell of a plan but I guess it's just not that easy. See the small rural communities that we live in Dont have many options to diversify and again it's just not that simple....... I'll wait for you research and suggestions on those.

I've talked to a lot of investment banks over the last 2 weeks and according to them the O&G industry is still a sturdy long term target for them and their money so hopefully that's a positive sign moving forward.

Again.... I've not one time said you are full of it but rather have disagreed with you on the full effect on the economy! It's my belief that the STATEWIDE housing market and real estate market will suffer, new vehicle sales will suffer, etc, etc, etc..... Anyway we can beat this ole horse to death and I guess time will tell one way or the other!

In the mean time I hope and pray we can all find a balance in our industries so that everyone wins and benefits from thriving, profitable and affordable markets!

[kyle1974]

Hey Oilfield Guys!!

20 % of the states payroll.

Billions paid in taxes.

Compared to the overall average of other industries combined, the O&G sector pays more than double.

Billions in construction projects (that you can tout as a construction industry success) I brought up the Exxon project that is a multi billion dollar deal.... Wonder if that's another construction industry success?



Several have posted it, you choose to ignore it.

[KR-oldmexico]

20 % of the states payroll.

Billions paid in taxes.

Compared to the overall average of other industries combined, the O&G sector pays more than double.

Billions in construction projects (that you can tout as a construction industry success) I brought up the Exxon project that is a multi billion dollar deal.... Wonder if that's another construction industry success?



Several have posted it, you choose to ignore it.

I also just did a little research..............

They have the oil & gas industry and the pipline & transportation industry separate from O&G in all the economic reports. In the more recent report and news stories its a much larger percentage... However I do the what he's saying and our great state of Texas is a very diverse state which is wonderful.

I still believe and the fall of O&G will put a major dent on the markets and tax revenues (the economy)!

[kyle1974]

Hey Oilfield Guys!!

I also just did a little research..............

They have the oil & gas industry and the pipline & transportation industry separate from O&G in all the economic reports. In the more recent report and news stories its a much larger percentage... However I do the what he's saying and our great state of Texas is a very diverse state which is wonderful.

I still believe and the fall of O&G will put a major dent on the markets and tax revenues (the economy)!

Without a doubt there will be an impact.

Overall, it's the highest paying industry in Texas. When you have entry level people making 60-90k a year that may be forced to take a job paying half that, how can that not have an effect on the overall economy?

It is good we have diversity here, but I think some folks are underestimating the importance of the O&G sector as to why some of those other industries are successful.