N. California College of Construction News Blog

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October 29,2012

Posted by nahetsblog on October 29, 2012

IMPROVED ECONOMY IS DRAWING ILLEGAL IMMIGRANTS ,MORE HEADING NORTH THAN SOUTH

One of the unintended consequence of an improving economy is for the first time since July of 2007 the number of Mexicans (illegal or otherwise ) coming to the United States is more than the number heading south. The numbers are not exact but a research report conducted by the University of Southern California and a Mexican government-sponsored research group using data from both the United States and the Mexican governments and interviews came to this conclusion.For example, in 2000 their was 770,000 that came to the United States (illegal and legal ) in 2010 that number was 140,000 that is a huge difference.

USA TODAY,s QUARTERLY REPORT SAYS 2013 IS GOING TO BE LESS PAINFUL THAN2012

The economy is going to improve slowly through 2013,according to a survey of 48 economist done by the USA TODAY newspaper.But as usual they premise their predictions on the fact that congress does not do anything that will hinder the growth,the economy is expected to grow at a rate of 2.3% that is a modest improvement over this years 1.65 %. The unemployment rate now stands at 7.8% and it is predicted to average 7.6% next year,we have been adding jobs at a rate of about 125,000 per month , next year it is predicted to be about 175,000 jobs per month.Business investment growth is has been 4.2 % over last year, next year that rate is predicted to be about 7.5%. The Fed has promised to keep buying mortgage backed securities and also has promised to keep the short-term interest rates about where they are now.

UNITED STATES OIL PRODUCTION ON PACE TO SURPASS SAUDI ARABIA

Due to the high price of a barrel of oil and the new technologies for extracting the oil we have been increasing our production by about 7 or 8 percent per year and at this rate we are going to surpass Saudi Arabia either in 2013 or 2014,that is assuming that Saudi Arabia keeps their production where it is right now.The boom has surprised everyone, including the experts.The Energy Department has predicted that next year crude production should hit 11.4 million barrels per day,that is just below the Saudies production of 11.6 million barrels per day.Even with the increases over the last four years we still are not even close to what we consume,current consumption is just a little over 18 million barrels per day.Even though the increase in domestic production has not shown up at the pump it has created a lot of jobs,a lot,and how do you know it has not showed up at the pump? one year ago the pundits were predicting that because of the election this fall and that the Obama administration was touting the green energy that we were going to be paying $4.50 to$5.00 per gallon this summer,and that has not happened,so maybe we have seen it at the pump we just do not know it.

One of the biggest reasons we are seeing an increase domestically is our new found ability to get oil out of rock that used to be to difficult or impossible,to free the oil and gas out of the rock they use a technique called "fracking" that is where they pump water,sand and chemicals into the well,this fracking method has unlocked enormous amounts of oil and gas.This long period of high prices has given the drillers the motivation they need to expand and search for new areas.

These increases have been a boom for the local economies,the states that have seen the biggest boom are North Dakota,Oklahoma,Wyoming,Montana and Texas,after BP oil spill in the gulf the production waned,it is now starting to climb back to where it was.The two states that have the most shale that can be fracked are North Dakota and Texas.

One concern that some people have is the long term effects of fracking are unknown, their is a concern that some of the chemicals that are used in that method could end up in the water table,it might be years before we find out.

Caterpillar known as a bellwether company for judging the health of the worlds mining and heavy equipment construction has three main sectors in their business,heavy equipment,mining and power services, lately they have made huge investments in their mining and equipment sectors.

99.99% of the time it does not matter whether the President is a Democrat or a Republican,but when it comes to education it does matter. Democrats tend to care more about the blue collar jobs then their counter-parts.Republicans tend to care more about the 2 and 4 year schools, CDL schools,welding schools,heavy equipment operators schools or heating & air conditioning repair schools will be better off with a Democrat than a Republican,of course that is my opinion.

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