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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5334)	8/13/2005 2:13:18 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Imbalance of trade -- Colorado roughnecks uneasy about influx of Chinese workers By Gargi Chakrabarty, Rocky Mountain News August 11, 2005 Brent Rouse has been working in Colorado's oil and natural gas fields for the past 12 years. And he doesn't pull any punches about his thoughts on energy companies bringing in rigs and workers from China to drill wells in western Colorado. "I don't think people really understand the problem it's going to cause to have Chinese rigs and crews out here," Rouse said. He works on a rig in Garfield County's Piceance Basin, drilling wells for Oklahoma-based Williams Cos. Inc. "We don't want Chinese workers out here because they'll do the work for $10 or $12 an hour. All that will do is lower our pay rates." Rig workers earn around $22 an hour, although experienced ones get as much as $30 an hour. Last week, a Chinese rig imported by Houston-based GTS Drilling began digging its first well near Parachute. It was set up by four engineers from China. Denver-based Golden Bear Drilling & Services is set to import two more rigs and workers from China in September. It plans to import 10 rigs and experienced Chinese crews to operate at least five of them in the region in the next couple of years. These companies say the imports from China are a simple solution to address the shortage of rigs and labor in the Rocky Mountain region - a shortage that is slowing energy production. Gohar Fayyaz, a field engineer with GTS Drilling, said the problem goes much deeper than training local workers for several months. That training scenario was suggested this week by U.S. Rep. John Salazar, a Democrat whose district includes Garfield County. "It takes more than a few months to get good crews," Fayyaz said. "This is hard and dangerous work. It is not easy to find people in rural Colorado who're willing to come by and work in a rig." Fayyaz said his company is planning to bring in another rig in summer 2006. Although Chinese engineers from HongHua are in Garfield County helping set up the rig, the rig is being operated by American crews. "Bringing a rig from China is like buying a Japanese car; I don't know why that's an issue," Fayyaz said. A retired doctor in Highlands Ranch is hoping to cash in on the trend by helping energy companies recruit dozens of oil and gas field workers from China. Xue-wei Wang, a surgeon who worked at the University of Colorado, has helped hundreds of Chinese citizens in past years to come to the U.S. for training. Wang set up the Denver-based USA Chinese Association for Science and Technology in 1991 - a nonprofit company designed to promote international business exchange, particularly with China. Wang's younger son, Wendal, a company vice president, is based in Beijing. "Hundreds of people (who come to the Beijing office) want to come here. But we have to select from them," Wang said. "We don't know if companies want these workers. When we know that, Wendal can interview them, and we can bring over 75 workers." Wang said the workers could come over for six months on visitors' visas. They could work in the oil and gas fields as well as train American labor. Howard Arnold, business representative of the United Association of Pipefitters Local Union 208, warns that large-scale imports of Chinese workers could cause problems. "I don't buy this shortage argument. It is bogus," said Howard Arnold, business representative of the United Association of Pipefitters Local Union No. 208. "It doesn't take a four-year degree to be a roughneck on a drilling rig. Basically, the companies are trying to make more money by bringing in people and machines from China." Although most rig workers don't belong to unions, Arnold said there could be labor unrest if companies start bringing in Chinese workers. "If we lose jobs a little bit at a time, soon Americans will be displaced, and they won't be able to afford to go to hospitals or buy a house," Arnold said. "There will be a backlash because of that. "Companies talk about global economy. That is because they are looking for returns to shareholders." chakrabartyg@RockyMountainNews.com or 303-892-2976 rockymountainnews.com