Unemployment rate rises for NM cities...

Unemployment rate rises for NM cities as other metros recover

There are 394 comments on the Business Journal story from Jul 2, 2013, titled Unemployment rate rises for NM cities as other metros recover. In it, Business Journal reports that:

The unemployment rate in New Mexico and its four major metropolitan areas increased in May, according to the U.S. Bureau of Labor Statistics.

Join the discussion below, or Read more at Business Journal.

Ben Around

United States

#164 Jul 12, 2013
Atomic Cafe wrote:
If you don't think the New Mexico Pit Rule has harmed the state's economy by increasing costs to the industry, you are wrong:
http://ford.nmt.edu/react/pitrules_index.html
http://www.abqjournal.com/opinion/guest_colum...
The "PIT RULE" requires closed loop drilling. I have heard the rule can increase drilling costs by $40-$70,000/well. There is no increase in operating costs one the well is producing, because surface discharge of produced water has not been allowed for +/-20years.
Shytepumper

Albuquerque, NM

#165 Jul 13, 2013
Fracker wrote:
<quoted text>
Didn't say cost of nat gas extraction in NM is "so much higher", jes said cost of extraction is higher than market prices at the moment thats why we're holding off until we get a much better idea of price trajectory. The regulations do add a cost to extraction but that is a known qty and can be planned for.
I'm in Farmington but my ISP is wireless verizon air card and it picks my access point based on that sites availability. I have no control over it.
Good jargon there! Almost makes you sound like a professional! And if it weren't for EVERY OTHER natural gas industry worker in New Mexico disagreeing with you, you might be believable.

But at least you finally admitted that the cost of extraction is higher here than in every other natural gas state in the nation, and that's a start. You're coming around! Meanwhile, the drilling infrastructure, which is all the drilling, and drilling support businesses, and all the qualified and experienced hands, have left, or are leaving, New Mexico for greener pastures everywhere else natural gas IS profitable at today's prices.(That's everywhere but New Mexico.) And New Mexico loses all that tax revenue, and economic prosperity. And the ripple effect continues as every other business, retail, restaurants, housing, etc. all feel the pinch because there is less money to spend.
Ben Dover

Albuquerque, NM

#166 Jul 13, 2013
Ben Around wrote:
<quoted text>The "PIT RULE" requires closed loop drilling. I have heard the rule can increase drilling costs by $40-$70,000/well. There is no increase in operating costs one the well is producing, because surface discharge of produced water has not been allowed for +/-20years.
Drilling costs ARE part of operating costs. The price of drilling a well must be amortized over the projected life of the well.
short term

Huntsville, AL

#167 Jul 13, 2013
Shytepumper wrote:
<quoted text>

.
narrow special interest vs. long-term, more important values.

You may make a temporary small buck in a glutted marketplace by pumping shyte into our groundwater and soils, but protection is worth it.
Atomic Cafe

Albuquerque, NM

#168 Jul 13, 2013
short term wrote:
<quoted text>
narrow special interest vs. long-term, more important values.
You may make a temporary small buck in a glutted marketplace by pumping shyte into our groundwater and soils, but protection is worth it.
If making billions of dollars off of something for nearly half the nation's history is a "temporary small buck" to you, then we need MORE "small buck" industries like that. And who says the marketplace is glutted? It's sure doesn't seem glutted to every other natural gas state that's seen growth in the industry while New Mexico drove the industry away. And again we see you are still clinging to the old nonsense about pollution. Even the state has finally seen the light by rolling back some of the Pit Rule regs. Too bad it's too little, to late to save the industry in the near term. It will be better for the long run, though, if the natural gas business ever trusts New Mexico politics enough to do business here again. You live in Santa Fe, right. You should head down to the roundhouse and see how our state legislature feels about losing all that tax revenue. It's put those big spending Democrats in a tight spot, that's for sure!
Atomic Cafe

Albuquerque, NM

#169 Jul 13, 2013
Katia wrote:
You can't get a job in New Mexico unless you're somebody's brother-in-law.
Guess that means you better marry well!
Atomic Cafe

Albuquerque, NM

#170 Jul 13, 2013
The wrote:
<quoted text>
first link shows that state is actually making it easier for small producers to fill out forms and comply with existing safeguards.
The second is an opinion piece with the typical self-serving whining of someone that doesn't want to follow rules that benefit our land and water and the rest of us in the long term.
Yeah making it easy to fill out the increasingly complicated paperwork process. Just like government, which always steals away your rights, and then give you back a few of them and acts like their doing you a favor. And no, the second is NOT an opinion piece, it state actual facts, which is something you liberals ignore when the facts don't support your argument. As usual, you always side with your government and the regulators always say that they don't have anything to do with driving business away, while the ones who are actuall stuck paying the bills get ignored. I suppose your a big fan of going through TSA checkpoints at the airport, right? After all, President Obama says they are necessary to protect your safety. You must like the DOJ wiretaps and them reading your mail, too, since the government says it's for your own good.
Ben Around

United States

#171 Jul 13, 2013
Ben Dover wrote:
<quoted text>
Drilling costs ARE part of operating costs. The price of drilling a well must be amortized over the projected life of the well.
You are right. The entire drilling costs are charged against the reserves, as they are produced, over a period of MANY YEARS. However, my point was that the costs associated with the "pit rule" is much lower that the numbers indicated. Also, if a well is so marginal that it can't absorb an initial capital expense increase of $40-$70,000, the well would probably not be drilled in the first place. The fact is, that an average gas well in NM produces LESS that 300MCFD. With current prices of +/-$3.25/MCF, and gathering, treating, and transportation costs that can be 50% of the value, the economics just aren't there.
Atomic Cafe

Albuquerque, NM

#172 Jul 13, 2013
And wrote:
<quoted text>
in Governor Martinez these industries have bought themselves a corrupt partner whose appointees have taken the environment department apart, reassigning those that have the technical knowledge to the agency equivalent of Siberia or driving them out and not replacing staff.
The example of the electrical inspection is relevant since her appointees allowed hundreds of wells to be operated without proper inspections and most of them were deficient. The direction of her administration is to let the polluters regulate themselves and don't require anything that challenges certain industries to take into account anything except their narrow interests.
Please point out links to all the news stories about folks getting electrocuted at well sites because of faulty well wiring, because I can't seem to find any. It's almost as if those kinds of stories don't exist! And bravo for Governor Martinez using the authority given to her by the people of the state! If she was successful in getting government off the backs of industry through executive action, I certainly support her in her efforts, then that's all the more reason for people to vote for her again because she wants everyone to be able to get a job. The interests of oil and gas ARE in the best interest of New Mexico.
Atomic Cafe

Albuquerque, NM

#173 Jul 13, 2013
Fracker wrote:
<quoted text>
Didn't say cost of nat gas extraction in NM is "so much higher", jes said cost of extraction is higher than market prices at the moment thats why we're holding off until we get a much better idea of price trajectory. The regulations do add a cost to extraction but that is a known qty and can be planned for.
I'm in Farmington but my ISP is wireless verizon air card and it picks my access point based on that sites availability. I have no control over it.
OK. So the regulation DO add costs, as I've been saying all along. And those costs are what's driving the natural gas business out of New Mexico. Thank you for FINALLY agreeing with me. I see an earlier poster caught on to the artificially businesslike tone of your posts..I was skeptical too. In that vein, all I can say is that I "concur with the earlier poster".
Ben Around

United States

#174 Jul 13, 2013
Atomic Cafe wrote:
<quoted text>
Wow! You've written quite a detailed diatribe there that shows you know little about drilling in New Mexico. You don't seem to understand that New Mexico laws only apply inside New Mexico, but that Federal lands cross state boundaries.(A New Mexico cop cannot go across a state line to enforce Texas law, but a BLM ranger can go across a state line on BLM land to enforce FEDERAL law) Almost 50 percent of drilling in New Mexico takes place on Federal lands, where royalties are paid to the Federal government for what's underneath, and the Federal government gets the same royalty on Federal land regardless of which side of a state boundary the drilling takes place from. But the pit rule DOES apply on the SURFACE of Federal Lands. Water rights in New Mexico predate oil and gas rights, and go all the way back to SPANISH water law. They are quite a different animal, wholly separate from oil and gas, and involve mostly surface rights, as deep drilling for water was unknown 300 years ago. And no, the cost to drill horizontally is NOT overly expensive, especially when both short term expenses (up front cost increased as much as a quarter-million dollars due to the Pit Rule) and LONG term liability expenses of the New Mexico Pit Rule are considered. Technology in horizontal drilling has come a long way.
IF what you say was true (and it isn't!) what is the benefit to the state of NM to drill on Federal land in NM? No tax revenue and no royaly payments to the state. There ar NO NM jobs created lost in the drilling in bordering states, because the state line is transparent to the operations group. If they currently operate from an neighboring state, they aren't going to move or hire personel in NM.
Atomic Cafe

Albuquerque, NM

#175 Jul 13, 2013
Ben Around wrote:
<quoted text>The "PIT RULE" requires closed loop drilling. I have heard the rule can increase drilling costs by $40-$70,000/well. There is no increase in operating costs one the well is producing, because surface discharge of produced water has not been allowed for +/-20years.
What makes you think that drilling costs aren't part of production? Everything that is made has up front costs. The price of a new car doesn't just include the labor to build it, the steel had to be bought and paid for too, and all the union legacy costs are in there too, and all the costs associate with all the environmental regulations. And your 40 to 70 grand number is a tad low. Try up to $200,000-$250,000 per well by the time everything associated with the pit rule, including increased permitting and environmental fees are factored in. Thankfully Governor Martinez has succeeded in her push to get at least SOME of the over-regulation of the oil and gas business relieved. She's doing exactly what the voters sent her to Santa Fe to do!
another

Huntsville, AL

#177 Jul 13, 2013
Atomic Cafe wrote:
<quoted text>

. I suppose your a big fan of going through TSA checkpoints at the airport, right? After all, President Obama says they are necessary to protect your safety. You must like the DOJ wiretaps and them reading your mail, too, since the government says it's for your own good.
lunatic, off-topic post.
another

Huntsville, AL

#178 Jul 13, 2013
Atomic Cafe wrote:
<quoted text>
Please point out links to all the news stories about folks getting electrocuted at well sites
.
bonehead post.

http://www.forconstructionpros.com/press_rele...
Atomic Cafe

Albuquerque, NM

#179 Jul 13, 2013
Ben Around wrote:
<quoted text>IF what you say was true (and it isn't!) what is the benefit to the state of NM to drill on Federal land in NM? No tax revenue and no royaly payments to the state. There ar NO NM jobs created lost in the drilling in bordering states, because the state line is transparent to the operations group. If they currently operate from an neighboring state, they aren't going to move or hire personel in NM.
The western United States have HUGE amounts of Federal lands. 42 percent of New Mexico if Federal land. If you don't drill there, you aren't drilling. And yes, there ARE tax revenues to the state for wells drilled on Federal Land. New Mexico has a state income tax. Employees pay it. New Mexico has a gross receipts tax, rather than a sales tax. EVERYTHING other than groceries and medicine is taxed in New Mexico, including contracted labor. New Mexico required licensing fees and environmental fees before the pit rule, and if the fees are too high, and the operation moves out of state, New Mexico gets nothing. Only so many wells are allowed per unit of land. If New Mexico is out of picture, there isn't enough work for everyone, so someone leaves and goes elsewhere, and takes their jobs with them. That's just simple economics.

We can go on and on, but the bottom line is STILL this: EVERY natural gas state has seen growth, except for New Mexico. The state with the most restrictive business environment for the natural gas business is New Mexico. The number are NOT a coincidence, they are cause and effect.
Atomic Cafe

Albuquerque, NM

#180 Jul 13, 2013
another wrote:
<quoted text>
lunatic, off-topic post.
Obviously you are a fan of big government, and since you refuse to answer, you must support all those things. I never doubted it for a second.
Atomic Cafe

Albuquerque, NM

#181 Jul 13, 2013
another wrote:
Bwaaaahaaahaaa! That was in Texas, jackass. You should move to Texas so you can bitch about their government.
as usual

Huntsville, AL

#182 Jul 13, 2013
Atomic Cafe wrote:
<quoted text>
That was in Texas,t.
you have nothing but stupid insults. So the point about corruption by the Martinez administration neglecting safety issues around electricity on well sites is invalid because this poor guy died in Texas?
as usual

Huntsville, AL

#183 Jul 13, 2013
Atomic Cafe wrote:
<quoted text>

.
Nope, like our fine Congressman - now Senator - Tom Udall I was very wary of the Patriot Act and giving more power to the entrenched national security establishment that transcends administrations and was taken to its zenith under Cheney/Bush. The national security establishment, religious zealots, women haters, nativists, the gun lobby and the defense, financial and extraction industries hold too much power and influence in this country. Right wingers are the their biggest tools, but everybody has surrendered too much. Of course, the right wing are always the first to criticize any security breach or attempt at rational reforms.

But the TSA has nothing to do with your corporate toadyism, denial of basic science and short-term thinking.
Atomic Cafe

Albuquerque, NM

#185 Jul 13, 2013
as usual wrote:
<quoted text>
Nope, like our fine Congressman - now Senator - Tom Udall I was very wary of the Patriot Act and giving more power to the entrenched national security establishment that transcends administrations and was taken to its zenith under Cheney/Bush. The national security establishment, religious zealots, women haters, nativists, the gun lobby and the defense, financial and extraction industries hold too much power and influence in this country. Right wingers are the their biggest tools, but everybody has surrendered too much. Of course, the right wing are always the first to criticize any security breach or attempt at rational reforms.
But the TSA has nothing to do with your corporate toadyism, denial of basic science and short-term thinking.
You sure got a long enemies list there! Forgot to mention the boogyman, though.

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