Oil Patch Jobs Are Leaving Fast

[Mike]

#1 It is being projected that the U.S. oil rig count will decline by 15 percent in the first quarter of 2015 alone. And when there are less rigs operating, less workers are needed so people get fired.

#2 Last week, 55 more oil rigs shut down. That was the largest single week decline in the United States in 24 years.

#3 Oilfield services provider Baker Hughes has announced that it plans to lay off 7,000 workers.

#4 Schlumberger, a big player in the energy industry, has announced plans to get rid of 9,000 workers.

#5 Suncor Energy is eliminating 1,000 workers from their oil projects up in Canada.

#6 Halliburton's energy industry operations have slowed down dramatically, so they gave pink slips to 1,000 workers last month.

#7 Diamondback Energy just slashed their capital expenditure budget 40 percent to just $450 million.

#8 Elevation Resources plans to cut their capital expenditure budget from $227 million to $100 million.

#9 Concho Resources says that it plans to reduce the number of rigs that it is operating from 35 to 25.

#10 Tullow Oil has reduced their exploration budget from approximately a billion dollars to about 200 million dollars.

#11 Henry Resources President Danny Campbell has announced that his company is reducing activity "by up to 40 percent".

#12 The Federal Reserve Bank of Dallas is projecting that 140,000 jobs related to the energy industry will be lost in the state of Texas alone during 2015.

 

[loomixguy]

Less hybrid vigor available at Wet Willy's, I would assume.

 

[Brad S]

Ya but those oil workers can trade their $2500/week oil patch job for a $200/week Obama job.

 

[hypocritexposer]

Kinda glad the CDN$ is down a bit...

 

[loomixguy]

With the jobs leaving faster than the Fatman at a Weight Watcher's meeting, there ought to be some real bargains on nice late model pickups pretty soon. Plenty of them all tricked out, you can bet.

 

[iwannabeacowboy]

With the jobs leaving faster than the Fatman at a Weight Watcher's meeting, there ought to be some real bargains on nice late model pickups pretty soon. Plenty of them all tricked out, you can bet.

Not looking for one too late, but I thought the same thing.

 

[backhoeboogie]

With the jobs leaving faster than the Fatman at a Weight Watcher's meeting, there ought to be some real bargains on nice late model pickups pretty soon. Plenty of them all tricked out, you can bet.

Not looking for one too late, but I thought the same thing.

Welding rigs.

 

[Steve]

I do understand Obama and the saudi's wanting to "punish" Putin for invading another country and using oil prices to do it....


BUT ,... it certainly reminds me of the last time a liberal president embargoed Russia..

Tangible effects of the embargo were negligible, with the Soviet Union simply acquiring grain from alternative sources in South America and Europe.[1] Commodity prices dropped following the embargo, contributing to a severe farm crisis.

sadly the Mid-West is paying the price again

 

[littlejoe]

I do understand Obama and the saudi's wanting to "punish" Putin for invading another country and using oil prices to do it....


BUT ,... it certainly reminds me of the last time a liberal president embargoed Russia..

Tangible effects of the embargo were negligible, with the Soviet Union simply acquiring grain from alternative sources in South America and Europe.[1] Commodity prices dropped following the embargo, contributing to a severe farm crisis.

sadly the Mid-West is paying the price again

How does mid-west suffer from low oil prices?

For me, it's double edged---used to be, anybody that called himself a 'consultant' would cost you $1,000 per day, what with wages, vehicle, expenses and anything else he thought he could charge for.

Lately, it's been closer to 2k. And I use consultant's--beats paying salary for somebody I don't need most of the time, and I can get better help, at least supposedly.

Anyway, we need one of these 'washouts' every so often to give suppliers a reality check and sort 'em out.

On the other hand, my net has dropped substantially.

On the other hand---so have my costs and we are only drilling to fulfill commitments, hold leases, etc. I will lease with 'commitment to drill' and one does what one said he would---win, lose, or aggravate.

If it continues long enuf and bad enuf---we will continue to pick up iron and do more and more of our own work. Lots of good young guys who could use a leg up, end up with increasing equity, and make us all some $$.

 

[mrj]

More reasonable fuel prices is great!

But some say the cattle market follows the oil market, and cite quite a few examples over many years...........so that bites when your living if from cattle.

It seems to me that much of the prosperity of this country (from farming and natural, renewable resources gained by the physical work, rather than government desk jobs or speculation on commodities and other types of business) was enhanced, maybe even allowed by, low cost fuel.

mrj

 

[Traveler]

More reasonable fuel prices is great!

But some say the cattle market follows the oil market, and cite quite a few examples over many years...........so that bites when your living if from cattle.

It seems to me that much of the prosperity of this country (from farming and natural, renewable resources gained by the physical work, rather than government desk jobs or speculation on commodities and other types of business) was enhanced, maybe even allowed by, low cost fuel.

mrj

The low cost fuel would be like a tax break to many consumers, worldwide for that matter, and a loss of income to a relative few. Hopefully there isn't a part of the equation I'm missing that would hurt beef prices.

 

[George]

Why is everyone talking about "low fuel prices" When Barry took office they were still giving Bush hell that he allowed gas to be as high as $1.689

Remember he was allowing his oil buddies to get rich - - - they never accused Barry of causing the hi prices as he was their golden boy.

I guess it is still Bush's fault!

What short memories we have!!!

 

[Faster horses]

Why is everyone talking about "low fuel prices" When Barry took office they were still giving Bush hell that he allowed gas to be as high as $1.689

Remember he was allowing his oil buddies to get rich - - - they never accused Barry of causing the hi prices as he was their golden boy.

I guess it is still Bush's fault!

What short memories we have!!!

Excellent post, George. I'm glad you brought that up!

 

[cowman52]

Have two son in laws I the oil patch, both in service after drilling, if this is going to slack off it ain't shook down to their jobs, both are getting 12 hr shifts, no cutbacks in future, 2 sand loading sites here in town going full blast, 2 more in the works, sand plant 70 miles away running 100 trucks 7 days a week, can't keep drivers. San Antonio nursery is short 100 workers due to hands going to oil field. One builder in midland has 3 crews doing landscaping, goal is home finished every 3 days, he just ordered 50 thou in plants for next week.
The news keeps harping on how the slow down is coming, it sure might, but it ain't near as fragile as everyone is preaching. Drilling permits published daily in paper are about the same, 9 to 12 every day. Rig moving co just up the road wanting another 50 hands, same for most others.

 

[hypocritexposer]

Have two son in laws I the oil patch, both in service after drilling, if this is going to slack off it ain't shook down to their jobs, both are getting 12 hr shifts, no cutbacks in future, 2 sand loading sites here in town going full blast, 2 more in the works, sand plant 70 miles away running 100 trucks 7 days a week, can't keep drivers. San Antonio nursery is short 100 workers due to hands going to oil field. One builder in midland has 3 crews doing landscaping, goal is home finished every 3 days, he just ordered 50 thou in plants for next week.
The news keeps harping on how the slow down is coming, it sure might, but it ain't near as fragile as everyone is preaching. Drilling permits published daily in paper are about the same, 9 to 12 every day. Rig moving co just up the road wanting another 50 hands, same for most others.

Not hearing of massive layoffs in Alberta either...

but, if it does happen...why not renegotiate wages? I'm sure guys will work for $20 instead of $40, if it means not working at Tim's for $15

How long do you restrict supply, before prices once again start to rise?

 

[Big Muddy rancher]

Have two son in laws I the oil patch, both in service after drilling, if this is going to slack off it ain't shook down to their jobs, both are getting 12 hr shifts, no cutbacks in future, 2 sand loading sites here in town going full blast, 2 more in the works, sand plant 70 miles away running 100 trucks 7 days a week, can't keep drivers. San Antonio nursery is short 100 workers due to hands going to oil field. One builder in midland has 3 crews doing landscaping, goal is home finished every 3 days, he just ordered 50 thou in plants for next week.
The news keeps harping on how the slow down is coming, it sure might, but it ain't near as fragile as everyone is preaching. Drilling permits published daily in paper are about the same, 9 to 12 every day. Rig moving co just up the road wanting another 50 hands, same for most others.

Not hearing of massive layoffs in Alberta either...

but, if it does happen...why not renegotiate wages? I'm sure guys will work for $20 instead of $40, if it means not working at Tim's for $15

How long do you restrict supply, before prices once again start to rise?

Some of the guys around here figure this will be used to make a correction in wages and service costs.

 

[iwannabeacowboy]

I'm not saying it's more than it is, but these 12 rigs weren't sitting like this last time I came through.

Midland hasn't slowed down much yet, but if this stays up very long I think it will.

There's still plenty of trailers stacked up in man camps, but there's obviously fewer than there was. With all the new housing/apartments being thrown up, if much of a correction occurs, I sure wouldn't want to have a lot in real-estate.

 

[cowman52]

Sarah Palin and the drill baby drill mantra was ridiculed, laughed at, and the elites were sure there wasn't enough oil anywhere to make $2 gas a reality. Well, that came to pass and now the goal is for it to go to hell in a hand basket just as fast as possible. Let's swear fracing causes earthquakes, a 9000 ft disposal well ruins all the water within 1000 miles, the lack of manpower can't be made up for, and on and on.
As bad as the country needs the money from oil, taxes, and all else the oil patch has brought in, there will be people who swear it will die and will piss on one foot and kick it off with the other till it does, or just say it was all part of the master plan like the idiot on Monday did.

 

[loomixguy]

First post seen on the truck & trailer site I belong to on Facebook where the kid said he was laid off from the oil patch & needed to pawn the truck off for "what he owed on it". $600/month payment and 25 K still owed on a Chevy with 170,000 miles tells me he is gonna end up taking considerably less. Bankers musta had very liberal lending policies for kids working in the oil patch.....

 

[Faster horses]

First post seen on the truck & trailer site I belong to on Facebook where the kid said he was laid off from the oil patch & needed to pawn the truck off for "what he owed on it". $600/month payment and 25 K still owed on a Chevy with 170,000 miles tells me he is gonna end up taking considerably less. Bankers musta had very liberal lending policies for kids working in the oil patch.....

Some companies have another company that pays for the owners of the pickups to 'use' their own outfits. I forget what it's called......but a lot of companies use the same company (the name is Road Runner or something similar--now I am going to find out for sure what it is) but the employee can buy a pickup because of that........and the only way it works for them in the end is if they are disciplined enough to get that pickup paid off right away. I know people who did, and they are okay. I know people who didn't and they are in the same situation as the kid you mentioned. I don't think they had to borrow the money from the bank in this situation. Not positive, though.