Many people get frustrated quickly when gas prices go up. It means higher expenses at the pump whether you're traveling for business or pleasure, and rising gas prices often lead to rising prices in other commodities as well.
Since people tend to spend an average of 80 cents of every dollar saved on gas on personal indulgences, many industries struggle with those increases.
In the mining and oil industry, however, rising gas prices aren't a reason to complain--and gas prices that are at the highest they've been since 2014 put us in an ideal position to celebrate.
We like it when gas prices head up for a number of key reasons.
Reason #1: Increased Costs Mean Increased Jobs
When gas prices go up, hiring increases for most industries related to oil and gas. As a result, new jobs are often created.
This means lower unemployment rates and a greater ability to place highly competent workers who might otherwise be overlooked--a key part of our mission.
In fact, the American Petroleum Institute predicts that the number of jobs in the sector will increase by 1.3 million through 2030.
So not only does this indicate increased employment opportunities for those breaking into the mining industry, it also means that individuals currently in the industry will be able to more easily acquire jobs in their chosen field.
Reason #2: The Mining Industry Gets Hopping
The mining and processing of sand used in the fracking process is a highly valuable commodity that is impacted greatly by the rise in gas prices.
When the price of gas goes up, fracking is more profitable. Consequently, work increases and higher quantities of the special silica sand used in this process are needed.
Since Resource Erectors has several clients who work in this industry, we have a front seat to exactly how much more work can be created when gas prices increase.
This means increased demand in a number of areas, including more employees to produce more sand.
Reason #3: Salaries Increase Along with Demand
When gas prices go up, salaries also increase--and not just in the gas and oil industries directly.
Workers who are responsible for mining silica sand and others in support industries will find that their salaries rise to meet the demand in work required in order to keep up with production.
Therefore, greater financial stability avails for many families who're able to hold down these jobs. There may also be increased opportunities for overtime available, which is particularly valuable for families who may be struggling to make ends meet.
Another reason salaries go up is due to lack of available talent to run new plant operations opening across the country. You see, rising gas prices and new technologies now allows frac sand to be utilized from deposits situated closer to the shale plays, significantly reducing transportation costs of the material.
Yet, finding the hourly labor as well as supervisors is often a challenge for these companies, thus, the offering of better salary incentives.
Reason #4: Job Stability Improves for Mining Workers
Job stability is an important commodity for many miners.
Thanks to rising gas prices, many of them are able to experience increased job stability, trusting that they'll be able to stay in their position as long as demand remains high.
Overall, this can lead to a more stable economy, since mining workers who are comfortable with their job stability are more likely to engage in spending in a number of realms: homes, vehicles, eating out, vacations, and more.
So higher gas prices may be a headache for many Americans, but for those who work in the mining industry or other gas supply support industries, rising gas prices can spell significant relief. If you work in the mining industry and need a new job and looking for stability in your career, contact us. We'll work with you to find the best company fit that supports your career goals and position you to help meet increased demand as gas prices continue to rise.