Comments on: Rough necks and rig hands: Wyoming’s booming gas industry http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/ for students and teachers of AP and IB Economics Sat, 22 Nov 2008 10:38:21 +0000 http://wordpress.org/?v=2.6.3 By: Welker’s Wikinomics Blog - for students and teachers of AP and IB Economics » Quit cutting chemistry class! http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/#comment-3188 Welker’s Wikinomics Blog - for students and teachers of AP and IB Economics » Quit cutting chemistry class! Sun, 04 Nov 2007 13:02:26 +0000 http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/#comment-3188 [...] it, ships and pipelines to transport it) and labor (engineers to design the rigs and drills, roughnecks to work the rigs, and perhaps most importantly, highly skilled scientists): Over a quarter of the [...] [...] it, ships and pipelines to transport it) and labor (engineers to design the rigs and drills, roughnecks to work the rigs, and perhaps most importantly, highly skilled scientists): Over a quarter of the [...]

]]> By: Howard Lin http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/#comment-1538 Howard Lin Sun, 12 Aug 2007 14:17:05 +0000 http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/#comment-1538 1. When there was a shortage of gas in year 2000, people must find other way of supplying energy. In Wyoming, it happens to be the development of natural gas. When there is a low supply and a high demand, then it will cause inflation. 2. As the graph has shown, the labor market in Wyoming gas industry is most likely to be perfectly competitive in the future, because of the low skilled labor and high wages, the recent increase of population by 40%, and the unemployment percentage close to only one percent, everyone would want to come to this place to work. It will then start to be incredibly competitive, and the wage will slowly drop down again. 3. I assume wage takers don't (or don't need to) put a lot of effort into their work, and wage makers are the ones that earns what they deserve. Base on that definition, the natural gas workers would be wage takers. 4. There is always a positive and negative side. If Wyoming has a low skilled labor and high wages, then some other place would be the exact opposite. When one business blooms, another will suffer. It all happens in a chain reaction. 5. It would create a lot of problems because when a labor worker sees labor workers from other companies earn two to three times more than them, it can easily be a disaster. It might cause a union strike…etc. This is why “the number of retail and entertainment outfits in Sublette county” fallen “even as disposable income soared”. 1. When there was a shortage of gas in year 2000, people must find other way of supplying energy. In Wyoming, it happens to be the development of natural gas. When there is a low supply and a high demand, then it will cause inflation.
2. As the graph has shown, the labor market in Wyoming gas industry is most likely to be perfectly competitive in the future, because of the low skilled labor and high wages, the recent increase of population by 40%, and the unemployment percentage close to only one percent, everyone would want to come to this place to work. It will then start to be incredibly competitive, and the wage will slowly drop down again.
3. I assume wage takers don’t (or don’t need to) put a lot of effort into their work, and wage makers are the ones that earns what they deserve. Base on that definition, the natural gas workers would be wage takers.
4. There is always a positive and negative side. If Wyoming has a low skilled labor and high wages, then some other place would be the exact opposite. When one business blooms, another will suffer. It all happens in a chain reaction.
5. It would create a lot of problems because when a labor worker sees labor workers from other companies earn two to three times more than them, it can easily be a disaster. It might cause a union strike…etc. This is why “the number of retail and entertainment outfits in Sublette county” fallen “even as disposable income soared”.

]]> By: manon http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/#comment-406 manon Sun, 22 Jul 2007 12:27:01 +0000 http://welkerswikinomics.com/blog/2007/06/07/rough-necks-and-rig-hands-wyomings-booming-gas-industry-2/#comment-406 1. In 2000, there were oil shortages, meaning that the quantity of oil demanded exceeded the quantity of oil which was being supplied. This meant that prices either had to be increased in order to decrease the quantity demanded (with the law of demand) or more oil had to be drilled to make up for the high quantity demanded. 2. The labor market in the Wyoming gas industry is most likely perfectly competitve. This is apparent due to the fact that the population of Sublette county drastically increased at the time of the gas boom, indicating low barriers to entry and a large amount of competitiveness. 3. Gas companish in Wyoming seem to be wage takers, as they were able to increase their tax revenue by such a large amount by 2006. (i don't know, we didn't learn this :)) 4. Low unemployment and high wages are usually regarded to be good for a country's economy. However, in this case, there was solely low unemployment and high wages in the gas-sector of the economy, while other sectors of the economy completely unrelated to gas and oil perished. Furthermore, high wages make it difficult for businessmen to start up their own business as high costs deminish the opportunities for high profits. 5. The number of retail and entertainment outfits in Sublette county have fallen even as disposable income soared due to the fact that all sectors of the economy unrelated to gas or oil were "in paralysis". 1. In 2000, there were oil shortages, meaning that the quantity of oil demanded exceeded the quantity of oil which was being supplied. This meant that prices either had to be increased in order to decrease the quantity demanded (with the law of demand) or more oil had to be drilled to make up for the high quantity demanded.

2. The labor market in the Wyoming gas industry is most likely perfectly competitve. This is apparent due to the fact that the population of Sublette county drastically increased at the time of the gas boom, indicating low barriers to entry and a large amount of competitiveness.

3. Gas companish in Wyoming seem to be wage takers, as they were able to increase their tax revenue by such a large amount by 2006. (i don’t know, we didn’t learn this :))

4. Low unemployment and high wages are usually regarded to be good for a country’s economy. However, in this case, there was solely low unemployment and high wages in the gas-sector of the economy, while other sectors of the economy completely unrelated to gas and oil perished. Furthermore, high wages make it difficult for businessmen to start up their own business as high costs deminish the opportunities for high profits.

5. The number of retail and entertainment outfits in Sublette county have fallen even as disposable income soared due to the fact that all sectors of the economy unrelated to gas or oil were “in paralysis”.

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