Cheap Oil Price is Not good!!!!
 

Not matter what anyone say, the lower/cheap oil prices is not good for the US economy nor Global economy. Let's hope and pray everyone can survive this down wave....

http://money.cnn.com/2015/01/15/news...html?iid=HP_LN

http://oilpro.com/post/9729/oil-serv...-just-got-real

"Oil Service Leader Schlumberger Cuts 9,000 Jobs - It Just Got Real."

I have the perfect solution. An executive order for a floating assessment on refiners to maintain oil prices at a minimum of $100/bbl. Congress could never agree on such a thing. The charge would be passed on to consumers and the price of gasoline would return to $4/gallon. This assessment money would be dedicated to repair highways and bridges. While the president is writing executive orders, he could write one to lower the national speed limit back to 55 mph. This would not only save millions of lives but it would reduce green house gas emissions and save the planet from global warming, I mean global climate change. This would make the voters so happy that they would surely elect another democrat and continue to save the environment.

Been with slb 9 yrs... Survived the layoff in 2008/2009, praying i get thru this one. Just caught wind 25% pay cut also on the horizon.

Dang man. I have been with them almost 5 years now. That is the first I hear about a paycut. Good luck to you. What segment do you work in? Im in DT&R.

Well Guys..I'm a 3rd party contractor.. I just got cut loose in SW TX.. WHERE IT WAS BOOMING... When I say buckle up..It's going to be a slaughter... 10's of 1000's unemployed in next qtr..

Sorry the hear about that....hoping and praying things turn around soon.

Good luck to you as well! PM sent... we may know each other... I am in D&M.

I've been with D&M (pathfinder) for a bout 4.5 years now..they made some cuts today...made it through this time.Praying I make it through , if another comes around


Sent from my iPhone using Tapatalk

Man that sucks and I hope things turn fast and get you guys back working !

Freaken sad how the hard working has to pay

Prayers for everyone in the oil field. Looking really bad if you're part of a drilling company in North Dakota or Texas, specifically shale fracking.

http://www.vox.com/2014/12/16/740170...prices-falling

^Yep^




Sent

Not to be joking about the situation, this is serious dumping onto the crude market.
We need a national program for recovery. This would not be allowed if the another nation was dumping corn or rice or chickens into the US for the purpose of monopolizing the market. This is not supply and demand, it is unfair competition. If action is not taken soon, serious consequences will result.

Please elaborate.


Sent

OPEC is flooding the market to drive prices down and hurt the smaller American companies. They made it clear they didn't like the smaller companies taking advantage of the shale oil having theirs hands in OPEC's cookie jar. Therefore they are driving prices down and taking our oil out of the picture so they can have full control back.

Cheap Oil Price is Not good!!!!
 

Our heavy increase in production had nothing to do with a surplus?


I'm just devil's advocate
Sent

sure, but they felt threatened and were in fear of losing market share. among other things.

just like a walmart in a small town. they can either give up a piece of the pie and let the mom & pops thrive or they can drop prices to the floor and drive the mom & pops to the unemployment line and keep all the market or gain some

In the long term, capitalism works and price downturns lead to increasing production efficiency and reducing production costs.

As far as governmental policies go, the focus should be on reducing governmental requirements and policies that increase production costs and artificially deflate demand. Here is a checklist of things the feds could change:

1. Repeal ObamaCare to decrease the cost of labor for employers in the production, transportation, and refining sectors. This will increase competitiveness with foreign produces with far cheaper labor costs.

2. Reduce unneeded regulation and required approval processes.

3. Open the door to cheaper and more efficient transportation and refining through speedy approvals and reduced regulation.

4. Repeal all ethanol subsidies and requirements that reduce demand for oil because it is replaced with subsidized ethanol.

Roger, our own gooberment is one of our worst enemies in this

could this be a tactic to crush Russia's economy?
and in the meantime bring to price of labor down?
don't we all take advantage when the price of oil is high? Salaries go up?

I think it last six-nine months......and I think some of the work going on now is pregnant work......meaning you can't stop it now.

I know rigs are being shut down
We lost a handful of orders Friday that were "put on hold"

I was at a rig last night and I was told if things don't improve in the near future all of their rigs will be stacked! As a matter of fact the one I was at last night will be stacked after they finish this well! Not good and this is a major supplier of land rigs!

I work for a drilling company and although it does suck to be in the oilfield it is great for all other aspects of the American economy to have low oil prices. It is either boom or bust in this business and this is the third bust I have seen. After you have been through one you tend to not get as many toys and really try to save and invest what you can.

Can't really feel sorry for people with 2 duck leases 2 or 3 deer leases 40 thousand dollar boat. A camp and a camper 4 wheelers big diesel truck sports car and a 300 thousand dollar house. And nothing put aside for hard times.

Gotta spend it before you even make it, it's the American Dream!


Sent

I feel sorry for the comma key on your keyboard....
He must be so lonely having to reside on a keyboard that belongs to a grown azz man who can not form a proper sentence because he doesn't understand how or where a comma should be used.

Not sure what the purpose of this post is but most of the people who have the things you just listed are small to medium sized businesses owners who made their money on the hardwork of the same people that they will be laying off in the near future.

Saw this today , no name but if true has to make you wonder how hard it would be to lose a job after 38. Years

We don't know what this guy had going on, and people who planned for retirement don't usually contemplate suicide... After 38 years I would assume he is at least 55


Sent

I've received a pink slip a few times in my life but never contemplated suicide.

I was taught to believe in my faith and never give up. Life is too precious to give up on

Suicide is a chicken **** and selfish thing to do too your family.

Godspeed to his friends and family.

First off I didn't realize I was posting on a website dedicated to the proper use of English grammar and punctuation.
Second I was posting from my smart phone at work it was a lot quicker and easier to skip the commas. I assumed even an obviously highly educated person as yourself could understand what I was attempting to say with or without commas. Unfortunately I over estimated your ability and for that I truly apologize.
Let me try to explain Although I listed a number of material possessions that a person may own I was not implying one person owned all the stated items. I was only stating a number of items a person may have purchased or is in the process of purchasing before putting a certain amount of money aside in the unfortunate event that they employment may be terminated.
Although it would be unfortunate that someone would lose their job I would have a hard time feeling sympathy for someone who did not plan for future economic instability.
Unfortunately I did not put commas in the above post. Since you are obviously a comma expert here are several ,,,,,,,,,,,,,, feel free to place them where you see fit. Think of it as a puzzle once you put them in the right places you will be able to decipher the message above.

I don't give a **** about the commas man. I just said that bc I dont think this thread is the right place to put people down who have not saved their money the way you think they should have. What's aboit to happen is going to be ****tty for a lot of people in LA and you pointing out their shortcomings doesn't help the situation at all. I think your post makes you sound like an *******. That's why I pointed out your lack of comma use.

Have a good night. Im hitting the sack so I can waste my money on shooting ducks in the morning.

^but he has point.
Lafayette blew up in the mid to late 90s with 30 -40 something a barrel oil. The it goes to 100 and everyone acts like it will stay that way.
They all pretend they haven't seen this before.

Oh no what are we going to do. We can't charge 100/hr per service hand.
We can't charge 30/gal for soap.
We can't double or triple the cost on anything.
What are we to do ?

Yes it's terrible.
But we will survive it and everyone will be buying super dutys and can ams again.

I've been working shutdowns in Fort Mac Canada Oil Sands region for years, two days ago I got notice that my services were not needed this spring due to cut backs, not a good thing....I also work in Kazakhstan, I have work scheduled for May, was told this is a go but my fall work there probably will not happen unless something changes, this is a Chevron/Exxon owned facility, I'm prepared to weather the storm for a bit but hope things change sooner than later...

Do you think the keystone fiasco contributed to the cutbacks?

??? Really ???

What do you work for?
I work to enjoy life and live it to my fullest and I know over 1000 or more in the oil industry and not one signal person has all what you listed above
I know more farmers who have more than "us" oil field guys

It don't matter what you have or how many camps , duck leases , deer leases or toys you have

Most people have enough spare money to live in a hard time but how much do you actually keep on hand ?

I'm sure a lot could live a few months but then you have to start using retirement ?

I feel sorry for anyone who loses a job .. From McDonalds to CEO of Exxon

...
 

No not at all

So you, personally no over 1,000 people that don't have any type of hunting lease, a diesel truck or an atv of some sort?

I don't believe you know 500 people, much less what they own.


Sent

Yea I know that many in the oil industry
I have been too over 300 platforms in my career or more so I have meet lots of people

And he noted guys who have "2" deer leases 2 or 3 duck leases

Not one person had what he listed alone

Yes most have deer leases but split with other people most have duck leases split with other people

But we have over 10,000 people here

So does one person alone have what this guy listed ?
2 duck leases
2 or 3 deer leases
300k+ house
40K boat
Camp
Camper
Big diesel truck
ATV
And sports car

If one person has this dude is my hero !!

Every person I ever met owns all of those things, except for the sports car because that's not salt life.


Sent

http://fortune.com/2014/12/08/oil-prices-drop-impact/

Cuts coming. But still a ways to go til the s*** really hits the fan.

I personally know someone who had 3 deer leases 2 in Texas 1 in Louisiana. He also has a camp in toledo bend probably a 20,000 boat couple of 4 wheelers one of those golf cart looking things don't know what they are called. House maybe 150 to 200 range and just bought couple of acres of water front south of Lake Charles. He's not a farmer or business owner but I'm sure he makes plenty. So your still hung up on someone having everything I said, it's not about that. It's about being in a industry that has cycles and not planning for it. If you want to spend all your money living for the moment knock yourself out but when it goes south don't come on here wringing your hands saying poor me. If it doesn't apply to you that's fine. I'm not trying to put anyone down go get all the stuff you can afford and then some. I ain't mad at ya.

I've got maybe 50% of the list, can I be your hero???

This really took a worng turn. Can we get back to discussing the issue? Don't believe I saw where anyone was saying poor poor pitiful me and sticking their hand out, so lets get pas that.

Very good read


Sent

Well there was the post about the guys that committed suicide because he got laid off, that was a bit pitiful and poor poor me.


Sent

Agreed. Well said.

My good friends dad sold his oil field service company at the beginning of October for LOTS OF MILLIONS. They said if he would have sold one month later it could have been for a qtr of the price.

While hunting on his personal 4k acre high fence ranch last month I started talking to him about his thoughts about the decline. His comment that hit me the hardest was, "I was charging them erroneous rates, and they were paying it without blinking an eye. My lowest paid employees were making 3xs what they should have been. But as long as they were paying I was charging!"

It's about time the market has had a reality check. How many oil field workers have you heard over the last 10 years talk about "man they send me off for 14 days and I probably work 3 days of that and they pay me $$$$$$$$$$$$!"

Not saying they all were like this, but ALOT of them were/are. I just hope/pray that we all can keep our heads above water for the duration. Including myself.

Well said.

He had to pay his guys 3xs what HE thought they were worth, because a lack of quality people. Supply and demand... Funny though how many seem to think it's still 1985 and labor should be 10 bucks an hour. Heck 100k with a family of four is tight. I'm glad to see oilmen make a handsome living. It's hard work, they're away from family a lot, and sacrifice a lot. I for one hope 90-100$ per barrel comes back soon and the hard working men and women can continue enjoying the fruits of their labor. God's speed oilmen. Remember if the worst happens and you lose it all, you'll still have family and friends AND everything is temporary. You WILL survive and you WILL once again be gainfully employed. Never give up and never lose Faith.

Yea, that's what it was. Demand was excruciatingly high and supply was at a staggering low for a High School educated 20 year old male to go work 14 days a month and make $100k/year.

ARTIFICIAL VALUATION OF A PRODUCT OR SERVICE CAUSED IT. If a product or service is linked to an artificially demanded, supplied or valued product it will in turn be subject to ARTIFICIAL demand, supply, or value. He was charging Oil companies 3xs what he needed to bc they were selling oil at 3xs what it needed to be at. Either the service companies are going to have go back to lower margins and tighter cost efficient operations or they will not make it. Its all directly related to the value of the dollar, or in this case the value of the barrel.

Or they will have to review their business model and decide if it feasible to have the business anymore.

You are correct everyone in the oil field probably have made the most money ever his year or with in last 3

But is that the employee fault ? If they are going to pay us stupid money we sure the hell are going to take it hand down

My relief started 5 years ago ... Today he makes $17 an hour more than when he was hired !!
That is stupid pay increase but do I blame him ? Hell no !! Because he was offered a job for that price and we either match it or they leave !!

Not about blame at all for me.......
It's about understanding.......what goes up most time comes down.
The oil business is cyclical for sure......unless you are wanting the "gas surcharge" to go down.......that has not changed. We spend 750K a year in frieght.......not a long putt to figure out that the surcharge pounded us a few years back.