Thursday, February 15, 2007

Refinery mishaps boost energy prices

Energy prices rebounded Feb. 13, with crude again approaching the $60/bbl barrier following disruptions at two US refineries and a report from Paris-based International Energy Agency hiking its estimate of world demand for oil and reducing its outlook for supplies.

IEA estimated 2006 demand increased to 84.5 million b/d from 84.4 million b/d, while 2007 demand is now figured at 86 million b/d, up from a prior estimate of 85.8 million b/d, primarily because of upward revisions of China's demand for petroleum. EIA's estimate of crude production from sources outside the Organization of Petroleum Exporting Countries was reduced to 50.5 million b/d (OGJ Online, Feb. 13, 2007).

A Feb. 12 power failure cut off steam to Sunoco Inc.'s 175,000 b/d Marcus Hook refinery in Pennsylvania. The facility shut down temporarily but was in the process of restarting the afternoon of Feb. 13. Valero Energy Corp. also reported a small fire but no injuries at its 180,000 b/d Delaware City, Del., refinery.

US inventories
The US Energy Information Administration said Feb. 14 that commercial inventories of US crude continued to decline during the week ended Feb. 9, down by 600,000 bbl to 323.9 million bbl. That followed a loss of 400,000 bbl the prior week. Gasoline stocks fell by 2 million bbl to 225.2 million bbl in the most recent period. Distillate fuel inventories dropped 3 million bbl to 133.3 million bbl. Most of that decrease was in heating oil as a result of cold weather, but diesel stocks also declined slightly.

Imports of crude into the US increased by 37,000 b/d to 9.6 million b/d during the same week. The input of crude into US refineries, however, dipped by 1,000 b/d to 14.8 million b/d, with units operating at 86.6% of capacity. Gasoline production declined to 8.9 million b/d, while distillate production increased to 4.1 million b/d.

Energy prices
The March contract for benchmark US light, sweet crudes rebounded by $1.25 to close at $59.06/bbl after trading as high as $59.60/bbl Feb. 13 on the New York Mercantile Exchange. The April contract regained $1.22 to $59.85/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.24 to $59.06/bbl. The March contract for reformulated blend stock for oxygenate blending (RBOB) reclaimed 5.64¢ to $1.61/gal on NYMEX. Heating oil for the same month was up 4.78¢ to $1.69/gal.

The March natural gas contract increased by 14.1¢ to $7.37/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., escalated by 29.5¢ to $8.07/MMbtu.

In London, the March IPE contract for North Sea Brent crude increased 43¢ to $57.03/bbl. Gas oil for the same month gained $4.75 to $516.75/tonne.
However, the average price for OPEC's basket of 11 benchmark crudes dropped 68¢ to $53.26/bbl on Feb. 13.

Contact Sam Fletcher at samf@ogjonline.com.
Copyright © 2007: PennWell Corporation, Tulsa, OK; All Rights Reserved.

Tuesday, February 13, 2007

Salary Negotiation

Get yourself into the habit of recognizing when you have been doing a good job for an extended period. This is the classic signal that you're ready for a promotion, a pay increase, or both. Learn the etiquette about pay talk on the job. Then get yourself into the habit of asking for what you deserve.
What have you done for them lately?First, you need to be able to explain the logic behind the hunch that says you're ready for more. You need evidence to show your manager that you deserve it. No one is paying closer attention to your work than you are. What have you done for your company lately? The company wants to know.
One way to document your contribution to your company is to keep a job diary. Every week, or even every day, write down what you did and how it helped meet the company's objectives. Keep lists or spreadsheets, because managers like to count things. Remember that attributes such as positive attitude, willingness to put in overtime, and quality of work, are essential. Include a few good stories about your work in the diary to illustrate what you added.
From all this documentation you should be able to create a list of several compelling reasons why you deserve a pay increase.
How often can you ask for a raise or promotion? You probably get a performance review once a year or once every six months. Companies often schedule salary reviews to coincide with these performance reviews.
If you work for a company that has been around for a while, you might have to wait a year before your first salary review. But if you work at a startup and cash is tight at the beginning, you might be able to get a performance review after working there for three or six months, or after a significant round of financing. If it has been more than a year since your last pay increase, it is probably time to ask for a raise.
A promotion, usually accompanied by a raise, acknowledges that you are ready for additional responsibilities. Even without a pay increase, a promotion can help further your career by signaling to future employers how your career has progressed.
How much should you ask for?As with any negotiation, you should know what you're worth before you ask for more. Find out the market range for your job by doing research through compensation tools such as the Salary Wizard, then consider where you should fall within that range given your skills and accomplishments.
It is not unheard of for a company to adjust a salary considerably when presented with better information about the value of a job. But some companies offer only modest increases, even for outstanding performance. Use the rumor mill and the human resources office to find out about what types of raises are customary. Just don't ask your coworkers what they are earning.
A cost-of-living increase that keeps pace with inflation is not a real raise. If inflation is 4 percent and your raise is 4 percent, you are just staying even.

Linda Jenkins, Salary.com contributor

Monday, February 12, 2007

Crude price closes at new high for 2007

HOUSTON, Feb. 12 -- The March contract for benchmark US light, sweet crudes couldn't sustain its break through the $60/bbl price ceiling Feb. 9, but managed to hang onto the highest closing for a front-month contract in the New York market so far this year.
The contract traded as high as $60.80/bbl Feb. 9 before finishing at $59.89/bbl, up 18¢ for the day on the New York Mercantile Exchange.
"Oil prices struggled early in the week, particularly after US...inventory data revealed a much greater-than-expected build in gasoline stocks concurrent with a draw in crude inventories whereas a strong build was anticipated," said Robert S. Morris, Banc of America Securities LLC, New York. "However, continued colder-than-normal temperatures along with reported improved compliance [by members of the Organization of Petroleum Exporting Countries] with recent production cuts ultimately gained the upper hand. In addition, geopolitical tensions moved more to the forefront ahead of the [United Nations] Security Council's Feb. 20 meeting to review sanctions imposed on Iran in December while Iran has remained vocally defiant with regard to its uranium enrichment program despite these sanctions."
Olivier Jakob, managing director of Petromatrix GMBH, Zug, Switzerland, said, "One of the key fundamental inputs of the week was the decision by Nigeria to curtail its February and March lifting programs. Since those programs were already nominated, it had to announce force majeure. By [Feb. 9] the full assessment of the situation was still not clear as to the extent of how many barrels will really be not available (apart from just being pushed forward to later dates)."
Moreover, he said, "Hibernia in Canada announced it was shutting down in mid-February for a month (production was 180,000 b/d in December but only around 120,000 b/d in January). The combination of the Hibernia outage, the Nigerian cuts, and the lower North Sea programs would take out about 15 million bbl of prompt sweet Atlantic basin crude oil availabilities and should start to tighten the crude oil physical market as refiners will start to embark on the purchasing list for the spring runs."
By spring, said Jakob, "We still should have the US strategic petroleum reserves looking to refill 11 million bbl and the North Sea oil platforms engaging in their seasonal maintenance."
Nevertheless, crude futures prices were lower in morning trading Feb. 12 in New York "on the news that OPEC believes the world oil markets will be over supplied by 300,000 b/d during the second quarter, even after the latest round of production cuts," said analysts in the Houston office of Raymond James & Associates Inc. "Saudi Aramco has announced it will increase crude shipments to Asia in March. In accordance with the OPEC production cuts, Aramco supplied 14% less than contracted volumes to Asia in February. Currently, Aramco is planning to supply only 7% less than contracted volumes for March," they said.
In other news, Jakob reported, "The price of ethanol in the Midwest went up on the back of barge movement disruption on the Illinois and upper Mississippi because of the cold and ice, but corn prices also rose, as well as natural gas. This winter was clement until the last 2 weeks. With the transportation hurdles surrounding ethanol, we will watch in coming winters for more pronounced logistic disruption, making winter weather a pricing element to be taken in account."
Energy pricesThe April contract for benchmark US light, sweet crudes gained 20¢ to $60.63/bbl Feb. 9 on NYMEX. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by 18¢ to $59.90/bbl. Heating oil for March delivery inched up by 0.01¢ but remained virtually unchanged at $1.73/gal on NYMEX. The March contract for reformulated blend stock for oxygenate blending (RBOB) climbed by 2.15¢ to $1.61/gal.
The March natural gas contract slipped by 4.4¢ to $7.83/MMbtu on NYMEX. On the US spot market, however, natural gas at Henry Hub, La., increased by 9.5¢ to $8.15/MMbtu. "Over the past month, US natural gas prices have had a great run, as a return to more seasonal temperatures has helped eliminate the year-over-year gas storage overhang. Now that US gas inventories are no longer as bloated and US gas supply and demand has come more into balance, gas prices should trade closer to a 1:7 ratio with crude prices, said Raymond James analysts.
"With the 12-month gas price strip now around $8.50/Mcf, the futures market is now appropriately pricing in a more constructive long-term natural gas outlook. If these higher US natural gas prices hold, the stock market's anticipated meltdown in the US drilling market may not be as severe as current gas weighted stocks are discounting. When the stock market psychology shifts toward a more bullish US drilling activity outlook, we should see a renewed interest in the beaten down North American natural gas levered stocks," they said.
In London, the March IPE contract for North Sea Brent crude dipped by 2¢ to $59.01/bbl. However, gas oil for February increased by $11.50 to $526.25/tonne.
The average price for OPEC's basket of 11 benchmark crudes increased by $1.47 to $54.99/bbl on Feb. 9. So far this year, OPEC's basket price has averaged $51.55/bbl, down from $61.08/bbl for all of 2006.
Contact Sam Fletcher at samf@ogjonline.com.

Monday, November 20, 2006

Murphy Oil Announces Management Changes

Murphy Oil Corporation (NYSE: MUR) announced today the following management changes effective January 1, 2007.David Wood, currently in charge of international exploration and production operations, will become Executive Vice President with responsibility for worldwide exploration and production operations. Mr. Wood will report to Murphy President and CEO Claiborne P. Deming. Murphy’s exploration and production offices will be centralized in Houston, Texas, and the New Orleans office will be closed. John Higgins who has been in charge of exploration and production operations in the Gulf of Mexico will retire. Harvey Doerr, currently in charge of Canadian operations, will become Executive Vice President with responsibility for worldwide refining and marketing operations and all strategic planning activities. Mr. Doerr will be based at the corporate headquarters in El Dorado, Arkansas and will report to Murphy President and CEO Claiborne P. Deming. Bill Stobaugh, Sr. Vice President – Planning, will report to Mr. Doerr. W. Mike Hulse, currently Executive Vice President – Downstream Operations, will retire from the Company. Kevin G. Fitzgerald, currently Murphy’s Treasurer will become Senior Vice President and Chief Financial Officer with responsibility for all financial and accounting activities of Murphy. Mr. Fitzgerald will report to Murphy President and CEO Claiborne P. Deming. John Eckart, currently Murphy’s Controller will become Vice President and Controller with responsibility for all accounting operations. He will report to Mr. Fitzgerald.Mindy West, currently Murphy’s Director of Investor Relations will become Vice President and Treasurer with responsibility for all of Murphy’s treasury functions and investor relations. Ms. West will report to Mr. Fitzgerald

Tuesday, August 29, 2006

"A" Players Unwelcome - Reevaluating the Role of B Players

From ERE TODAY: 8/29/2006 by Raghav Singh
Recently I attended a meeting of HR executives at the leadership development center of a big company based in Minneapolis. The subject of the meeting was recruiting challenges, particularly the difficulty in finding top talent–the A players. Appropriately enough, on one wall of the facility was a saying: "So easy to find an army, so hard to find a general." This was attributed to some ancient Chinese philosopher (apparently no one in China has had anything interesting to say in the last 2,000 years). Of course they might have just found it in a fortune cookie, but it sounds better if attributed to Sun Tzu. But deeper thought brought the realization that this statement was not exactly profound. Old man Sun was probably in a philosophical slump when he came up with this one. He was only stating the obvious: good leaders are hard to find. Few are called, even fewer are chosen.
But even finding a good army is hard. An army represents all the people the general depends on to get the job done. For every A player an organization has there needs to be lots of B players. And this is where recruiting needs to focus its energies. A players are hard to find but there aren't that many jobs that require A players either. Dave Lefkow recently wrote about recruiting B players and I couldn't agree more. So why do recruiters always strive to hire the "best"? Part of the reason is no organization likes to admit they accept anything but the best. But this creates unrealistic expectations and unnecessary pressure on recruiting. Hiring the best may be possible for an organization with an unlimited budget, but that doesn't apply to anyone I know. Leave aside the fact that an organization with all A players would likely implode under the weight of all those egos; one reason Enron turned out to be such a fiasco was because it was packed with hotshots. The B players, like whistleblower Sherron Watkins, were shunted aside.
The Need for B Players
An article in USA Today summed up the problem very well.
When employers aren't busy weeding out the bottom 10% of their workforce, they've been trying to steal the A players from the competition in a battle to lure the best. But some of those employers are coming around to the realization that failure and success might not lie among the weakest and strongest links, but in the solid middle, the B players, the 75% of workers who have been all but ignored. Companies have been trying to capture the "unicorns," but the focus is starting to shift to the horses, the B players.
Research by Harvard professor Tom DeLong has shown that while A players can make enormous contributions to performance, companies' long-term performance — even survival — depends far more on the unsung commitment and contributions of their B players. These capable, steady performers are the best supporting actors of the corporate world. They counterbalance the ambitions of the company's high-performing visionaries. Unfortunately, organizations rarely learn to value their B players in ways that are gratifying for either the company or these employees. DeLong also claims that his research shows that there is no evidence that A players are any smarter than B players — the difference is temperament.
That last part, the temperament, also highlights another problem with A players. They need to be continuously challenged and rewarded, else they will leave. A players are much higher risks for turnover than B players. For this reason a colleague of mine has coined a term that describes B players well: "competent stayables." These are the people who get the results (a point underscored by Lawrence Bossidy and Ram Charan in their bestseller Execution: The Discipline of Getting Things Done). A players have the vision, but B players are the ones who execute. And execution is ultimately what makes the difference between failure and success — the best ideas are worthless if not well-executed.
Recruiting B Players
So what do we need to do to get better at finding and hiring the competent stayables? The first thing is to get out of the mindset about only hiring the best. That was never true for even the best recruiters — it always meant the best of what was available. Start ignoring the drivel that relying on B players can only lead to failure. One prominent writer who ought to know better claims that hiring A players is the only way to build a great team: "A players hire A players; B players hire C players — meaning that great people hire great people. On the other hand, mediocre people hire candidates who are not as good as they are, so they can feel superior to them."
This kind of feel-good nonsense or seat-of-the-pants wisdom is precisely why so many are so fixated on hiring A players. Recruiting processes and the systems that support them are also designed to identify the best by screening out all others. This lengthens the time and adds to the cost of recruiting. Organizations need to change the focus of recruiting efforts to identifying those candidates looking for stability and longevity, but also challenging work. Hiring B players doesn't mean settling for people who are not interested in being challenged.
It also requires changing screening criteria to look for candidates with a track record of execution, not long lists of accomplishments. There may also be a need to consider compensation packages that are not heavily dependent on pay-for-performance. For all the good that pay-for-performance does, it is primarily best for motivating A players. B players that produce dependable performance will suffer if compensation is determined by meeting ever higher targets.
B players also want a life outside the office. These are not the workaholics interested in working 16-hour days. They want advancement, but not at any price. Look for evidence of that in identifying them. DeLong's research suggests that some of the best B players are former A players who have chosen different motivations than the ones they had in the past. These may be some of a company's best hires because they can fill in for A players when needed, having been there before.
Recruiters need to radically rethink how they approach recruiting, getting away from the ridiculous goal of hiring only A players. B players are the middle 60% to 70% of employees who consistently perform in their current role. They may not stand out like the As, but companies would be unable to function without them. Instead of chasing the fantasy of always hiring the best, recruiters would be better off and far more effective if they channeled their efforts to identifying and hiring B players. Forget Sun Tzu.

Monday, August 07, 2006

Tight gas market aids refiners, punishes consumers

By Nicole Gaudiano
GANNETT NEWS SERVICE
The oil-refining industry may have helped create a gasoline market that’s so tight, some industry experts and critics say any hurricane, pipeline break or other disruption is likely to cause price spikes.During unprofitable times in the 1990s, some refiners’ internal memos show that they wanted to reduce refining capacity to boost profits. The industry dismisses those memos’ significance — and the notion that it tightly controls supply — but ultimately, its investments in refining capacity haven’t kept pace with the growth in demand.Today, there are fewer refineries and fewer, but more profitable, refining companies.
Refiners also reduced the amount of gas they keep in reserve to use as a cushion during disruptions, and some companies limited production in the Midwest in 2000 for the sole purpose of maximizing profits.Those moves are legal and considered to be sound business practices. But they contribute to higher prices at the pump.Some members of Congress and consumer advocates say the oil industry has taken such practices to anti-competitive extremes that ultimately hurt consumers.“Gasoline is not Starbucks coffee,” said Tyson Slocum, director of Public Citizen’s energy program. “It is a critical commodity that should not be subject to the whims of the supplier.”The price of crude oil is the largest determinant of the price of gasoline, accounting for about half of the cost of a gallon and most of oil-producing companies’ profits.But crude must be refined into gasoline, and disruptions in that process can lead to sharp price increases. That’s especially the case today, as the demand for gas grows faster than U.S. refining capacity.
"It will not make a difference if Saudi Arabia ships an extra million or 2 million barrels of crude oil to the United States,” Crown Prince Abdullah’s foreign affairs adviser, Adel Al-Jubeir, said this spring. “If you cannot refine it, it will not turn into gasoline and that will not turn into lower prices.”There were dozens more refineries in the 1990s, but they weren’t as profitable. Environmental regulations on the products and facilities required expensive updates, and some refining companies “didn’t make the economic cut,” said Bob Slaughter, president of the National Petrochemical and Refiners Association.Even as smaller, inefficient refin-eries closed, some in the industry worried about having too much refining capacity to turn a profit, according to “highly confidential” internal documents exposed in a 2001 investigation by Sen. Ron Wyden, D-Ore.An internal 1995 Chevron memo relays the warning an energy analyst made at an American Petroleum Institute convention: “If the U.S. petroleum industry doesn’t reduce its refining capacity, it will never see any substantial increase in refining margins (earnings divided by operating revenue).”Similarly, a Texaco executive in 1996 complained of “surplus refining capacity” and wrote that “significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline.”API’s chief economist, John Felmy, called the statements “purely musings” and said it’s “utter nonsense to argue that we’re tightly controlling supply.”“We’ve expanded capacity over the past 10 years, the equivalent of a new refinery every year,” Felmy said. “But these radical groups will come up and say things that are fundamentally untrue.”Further, the industry projects capacity increases of 1.4 million to 2 million barrels a day in the next four years.The Federal Trade Commission, in its investigation of post-Katrina gas prices, found no evidence suggesting that companies refused to sufficiently invest in new refineries to tighten supply and raise prices in the long run. Instead, the agency said the evidence suggested that further investment would have been unprofitable.Indeed, refining capacity increased by 12 percent since 1987. But U.S. demand for gasoline increased by 28 percent. Refineries are using nearly all of their capacity, compared with 83 percent in 1987.The U.S. refining companies that stayed in the business — 55 in 2006, compared with 188 in 1980 — are seeing the rewards.ExxonMobil’s refining and marketing segment ended last year with a 40 percent profit increase. The top independent refiners and marketers collectively scored a 92 percent increase.“We have grown and we’ve been in the right business at the right time,” Rich Marcogliese, Valero’s executive vice president of refining operations, said in an interview. “It is a great time to be in refining because the supply/demand balance for refined products is tight with good margins.”Valero led the independents earning $3.6 billion in profits, a 99 percent increase over 2004. The company grew from one refinery in 1996 to 18 today, becoming one of the largest U.S. refining operations after acquiring Premcor Inc. last year.Valero was one part of the industry’s consolidation. There were more than 2,600 mergers in the U.S. petroleum industry — about 13 percent in the refining and marketing sector — since the 1990s.The industry’s consolidation, mostly in the refining segment, has generally led to wholesale price increases averaging 1 to 2 cents a gallon, a 2004 Government Accountability Office study found. The FTC disputed the study, but the GAO has stood by its results.“If you are observing higher wholesale prices, you probably can expect higher retail prices, all things being equal,” said Godwin M. Agbara, who led the study.Refiners keep some gasoline on reserve at U.S. refineries or terminals to protect against price spikes in case of a disruption. But inventories have declined from 40 days of average U.S. consumption in the early 1980s to 23 days in 2004, a GAO report stated.Their move to a just-in-time delivery system mirrors other industries, and it may reduce gas prices because of lower storage fees. But it also can increase price volatility.On Aug. 26, just before Hurricane Katrina hit, U.S. inventories for gasoline were 194 million barrels, fewer than three days’ supply before hitting the minimum operating level, a Congressional Research Service study found.An Arizona attorney general’s report on post-Katrina gas prices argues that, while the practice may work under ideal conditions, every disruption caused by natural disaster, refinery outage or broken pipeline affects the tight supply-demand balance.“Petroleum markets quickly tighten and prices skyrocket,” the April 2006 report said. “Thus, consumers pay a high price for the oil companies’ profit maximization strategies.”Low inventories exacerbated refinery production problems and failures of pipelines serving the Midwest during the spring 2000 switch to reformulated gas. Midwest refiners, along with others across the nation, had allowed their inventories to dwindle as they waited for the price of crude to drop, the Federal Trade Commission found in an investigation.As the national average reached $1.67 a gallon, gas in Chicago soared to $2.13 and in Milwaukee to $2.02 that spring.On one hand, that price spike helps illustrate a complaint of refiners: boutique fuels. Chicago and Milwaukee relied exclusively on ethanol as a pollution-reducing additive, and refiners couldn’t easily import a substitute to ease the shortage, the FTC’s investigation found.“All these different fuels around the country — that’s effectively using up refining capacity,” Peter J. Robertson, Chevron Corp. vice chairman, said in an interview. “By having one flavor for Atlanta and one flavor for California and one flavor for Chicago means you can’t balance the system.”But the FTC also found that three companies, left unidentified in its report, had previously decided independently to maximize their profits by curtailing production. At least one other company had excess supply but withheld it from the market to keep prices high.“An executive of this company made clear that he would rather sell less gasoline and earn a higher margin on each gallon sold than sell more gasoline and earn a lower margin,” the report said.Despite such findings, the FTC determined the industry did nothing illegal and issued a warning that seemed targeted more toward consumers than refiners: “Unless gasoline demand abates or refining capacity grows, price spikes are likely to occur in the future in the Midwest and other areas of the country.”

Tuesday, July 18, 2006

Perils of Responding to Postings on Major Job Boards

This article originally appeared in the January 2, 2002 edition of the Wall Street Journal

Job seekers say they are becoming particularly disenchanted with big online job sites.
Users say the boards often have out-of-date listings and that inquiries go unacknowledged by potential employers. In fact, many users are finding that job hunts conducted solely online rarely produce jobs — a phenomenon made worse by the current economic downturn.

Take Grace Dubois. The 37-year-old Connersville, Ind., resident spends roughly five hours a day on the Web job hunting through job boards. Over the past nine months, the unemployed health-care administrator and nutrition consultant has applied for nearly 400 health-care industry jobs online. Yet she has landed only seven job interviews and not many responses from other potential employers.

“I don’t know if they’re even getting my resume,” Dubois complains. “When they list jobs on the Internet, there’s often no phone number or name, just an e-mail or a fax [number]. You don’t know where your resume is going. There’s no acknowledgment. The Internet has made a lot of people lazy.”

Posted vacancies are often out of date, Dubois says. She suspects some are designed merely to get information about job seekers into the databases of outside recruiters. Machines, not humans, often match job openings to candidates — one reason that Dubois receives numerous e-mails about irrelevant openings. “They keep sending me engineering jobs, which I don’t even ask for,” she says.

Her frustration is a far cry from the way Internet job hunts were supposed to go. The major online job boards offer hundreds of thousands of opportunities, providing job seekers an alternative to searching corporate Web sites and local newspaper help-wanted ads. To job hunters, they have held out the promise of getting a resume in front of a vast pool of potential employers with relative ease.

But despite the reach and apparent ease online job searches offer, a surprisingly small proportion of jobs get filled that way. Only 6 percent of hires for management-level jobs currently occur through any Internet site, compared with 61 percent for networking, according to a recent study by Drake Beam Morin, a New York firm that provides outplacement counseling services to big companies and advises job seekers on a variety of methods including the job boards.

Another study indicates most successful job-search contacts made online happened directly at corporate Web sites, not through job boards. At nine big public companies, which combined made more than 62,000 hires last year, 16 percent of total hires were initiated at the corporate Web site, according to the study, conducted by CareerXroads, a consulting company in Kendall Park, N.J., that publishes an annual guide to job boards and consults with companies on their Web sites. The percentage of hires made through the four biggest job boards, Monster.com (www.monster.com), Hotjobs.com (www.hotjobs.com), CareerBuilder (www.careerbuilder.com) and HeadHunter.net (www.headhunter.net), was far smaller — 1.4 percent, 0.39 percent, 0.29 percent and 0.27 percent, respectively.

Job seekers should use the Internet to collect information, says Mark Mehler, a CareerXroads principal. But he cautions them against over reliance on the Internet. People should remember “that in the majority of corporations in America, employee referrals are the No. 1 source of how people get hired,” he says.

Dimitri Boylan, president and chief executive of Hotjobs.com, says it’s not the job boards’ fault if some resumes attract few responses. “In terms of not getting a reply to a job, that’s primarily the company’s option,” he says, adding, “Right now, they are getting a lot of applicants.” Hotjobs.com Ltd. has agreed to be acquired by Yahoo Inc. Boylan acknowledges the chance that overloaded hiring managers will lose track of applicants. However, “it’s less so with an online system than it is with a box full of resumes,” he says.

Jeff Taylor, founder of Monster.com and a global director at the job board’s parent, TMP Worldwide Inc., acknowledges imperfections in database search tools. “I’ve said that I’ll go to my grave trying to improve database searching and tools,” he says, adding, “I feel pretty good about the way the system matches up skills with openings and will continue to improve it.” Barry Lawrence, a spokesman for CareerBuilder Inc., which recently acquired Headhunter.net, similarly defended the company’s sites. Job seekers are “just not as patient as they used to be,” he says, citing the current weakened job market.

“All job boards can do is bring you to the company’s front door,” says Tony Lee, general manager of CareerJournal.com (www.careerjournal.com), the executive career site of The Wall Street Journal. Savvy employers, he adds, use automated response systems, so job seekers know their resume has been received. Currently, the biggest complaint among job seekers using CareerJournal is that there aren’t enough listings: There are now roughly 23,000 jobs on the site, compared with about 35,000 a year ago, a result of the economic slowdown, Lee says.

In addition to the giant job boards, there are niche sites catering to professions ranging from accounting to weed science. But as the number of job boards has skyrocketed, so has competition among applicants using them — especially since the unemployment rate began to rise last year.

As a result, the frustrations of searching for a job in a slow economy happen at warp speed. “We’ve never gone through a recession with e-mail and with the Internet,” says Cary Smith, director of marketing technology for Cigna Corp., an employee-benefits provider based in Philadelphia. “It has become very easy to create a resume and then transmit it effortlessly and instantaneously to whomever you want to send it to.”

Indeed, the ease with which candidates can create and send out resumes online has meant that employers trying to fill a post can expect to be deluged. Daniel Parrillo, president of Strategi, a small Stockton, Calif., technology-recruiting firm, recently posted an opening for an engineering vice president on five job boards at 4 p.m. By the time he arrived at work the next morning, he had 321 electronic resumes from people whose experience ranged from chief operating officer to help-desk troubleshooter. Several days later, he still hadn’t even opened 71 of the responses.

“I probably do have one diamond in the rough in those 71 e-mails I still have to get to,” Parillo says. “But unfortunately, if I do find this person, they’re going to get into the process too late.” He estimates he’ll eventually respond to about 80 percent of the applicants, in most cases sending a “canned e-mail” note.