Cheap Oil Price is Not good!!!!

[Nickt87]

[quote=irokcj5;737107]

Originally Posted by Nickt87

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.

yep it was tough finding young men that could write a sentence, read and understand a procedure, perform simple math, pass a drug test, and have a work ethic needed to do the quality work in a safe manner. That coupled with the fast increase in drilling, it was tough to keep the good guys because competition for their technical expertise. Service companies didn't drive the price of oil up. The large number of small operators starting up to get into the business, and even the more established companies leasing as many rigs they could caused a shortage of workers. I sit on several industry committees, including API, COS, and OOC, and lack of the number of quality workers has been a hot topic for the past 5-6 years. I just can't believe the annomosity I see on here for the blue collar guys finally getting ahead. And I'm not a blue collar guy. I just respect the h3ll out of them.

No one is upset with the blue collar guy, don't get it misunderstood. And it won't only be the blue collar guy to take a hit, it will be everyone that is directly and indirectly related to O&G(all of us). I'm a non-essential employee in the oil and gas industry, I understand the risk for ALL of us.

No one said the service companies drove the price of oil up either. They took advantage of an opportunity when it was there, but bottom line is that the margins were very high. Margins can be much lower and still be sufficient enough to operate the business in the black. That's what it will take to survive the dip. How the businesses decide to be more cost efficient is up to them. If the business decides its not worth it to operate than that's up to them too.

Oh, and the Human Resource shortage has been the story of this country for years even when the unemployment rate was at 9%, and not only in the oil industry. It's what happens when the culture of a country believes that everything is granted to them and they choose to work for ridiculous wages or they prefer to not work at all.