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The Chip Board Archive 18

A Lesson in Trickle Down Economics

Let me start by saying that I know quite a few of you (Mostly the Bush Haters) don’t believe in trickle down Economics.

And I cant say that in some cases those people are right so I can respect their opinions. However what I would like to do here is show a real case of how this effects many people including myself.

For the past 25 years I have been employed indirectly by "Big Oil" As an employee of an Engineering company most of our clients were included in what many people refer to as the "Evil Empire". Shell, BP, Conoco, Exxon-Mobil, Chevron, Valero, were all clients of mine at one time or another.

Most recently I am involved with 2 large upgrades for Conoco Phillips in plants in 2 different parts of the country. Our firm is Engineering and designing over a billion dollars TIC over the next 2 years.

Recently Conoco Phillips has put these projects on hold as they are "Re-evaluating" their options and there is a very good chance that these projects along with many other of their projects will be shelved because the profit just isn't there anymore and it is economically unfeasible to spend that kind on money at this time.

So what happens? Well for starters our company will have to lay off hundreds of engineers and designers that are no longer needed. so what's a few hundred people? Well since the plants wont be designed they wont need construction teams that total nearly 4,000 pipefitters, ironworkers, carpenters, electricians, ect, ect, ect.

Since there will also be no new units Conoco Phillips will also no longer need employees to operate these units or safety support either.

Those are the direct employees. Now lets look at the indirects? No longer will we be ordering materials or equipment so the Pipe Shops, Steel fabricators, vessel constructors, pump manufacturers, inspectors, drivers, riggers, rental equipment places, safety suppliers
and many, many other places will no longer have any work and they will have to lay off their employees.

Now on to the third market. Without thousands of people in these locations these towns where the units were to be erected will be hit hard. No one will be visiting the bars, restaurants, movie theaters. No one renting apartments, houses, hotel rooms. In fact without these units
those towns will become a shell of what they might otherwise be had these plants been built.

Not only will these towns get hit, what about the employees back in my office that will be laid off as well. No more eating out for those folks.

With the restaurants and bars getting no more business, can they afford to keep ordering from their suppliers? All of a sudden all those people who are secondary customers of these places are hurting as well.

Now, I don’t agree with CEO's with multi million doillar packages and I don’t agree with many of the things that these "Big Oil" companies do but it sure makes you think.

So next time you want to forward an email about boycotting the local gas stations to get back at that Evil Big Oil company, please remember that these copmanies do all the work and employ millions of people both directly and indirectly for about 6% of the profits while 15-18% goes to your government so they can measure the flow rate of ketshup and mustard.

Just wanted to get people thinking………..

Doug

Messages In This Thread

A Lesson in Trickle Down Economics
Thank you, Doug.
Thank you, Doug...
Trickle Down Economics is why we are in this mess.
I was just giving an example Ken.
Doug, Don't worry about losing jobs...
Hey, Glenn, Screw the $500.00...
Excellent Doug!
Re: A Lesson in Trickle Down Economics
Yes, when times are good the Oil companies make
Re: Yes, when times are good the Oil companies mak
Oh, but times were good, Our industry has
Ya got me Norm, its Exxon Mobil's fault that the
I think this might better be "Trickle Up"
Who is paying $4.00 a gallon? I filled up for
I don't want to attack the Evil Oil Co
Yes, today they are, but tomorrow under an Obama
An old mans view...
Doug don't you get tired of the same old flaming
Fred, I actually do. I started out saying that
Re: Fred, I actually do. I started out saying that
Re: Fred, I actually do. I started out saying that
Re: Fred, I actually do. I started out saying that
Norm, My post was not really directed at you, but

Copyright 2022 David Spragg