Cheap Oil Price is Not good!!!!

[jlincecum]

Originally Posted by "W"

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 !!

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.

[Goooh]

Originally Posted by Sightwindow

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.

Very good read


Sent

[Goooh]

Originally Posted by jlincecum

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.

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

[MathGeek]

Originally Posted by Bluechip

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.

Agreed. Well said.

[Nickt87]

Originally Posted by Clampy

^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.

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.

[Sightwindow]

Originally Posted by Nickt87

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.

[irokcj5]

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.

[Nickt87]

Originally Posted by irokcj5

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.

["W"]

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 !!

[simplepeddler]

Originally Posted by "W"

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.

[Nickt87]

Originally Posted by "W"

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 blaming at all. One would be a fool to pass it up.

I blame the companies creating the fantasy land that so many have been living in. Very similar to the housing balloon crash. Finance companies, appraisers, and realtors creating a fantasy land and then the main people that get hit and lose it all are the hard working people that thought they had it figured it out when they bought that home.

[tmm]

I'm glad prices are low. I filled up my truck the other day for less than $40.

Soon, I'm hoping to fly to Costa Rica round trip for $400.

I'm in maintenance for an oilfield service company and yeah- we're cutting "fat" from the crews but it's about time.

Fracking is bad for the environment anyways- so if we don't need to do it, we should be glad.

If you've got skills and are hardworking, you either won't get laid off or in the end you'll be better off for it.

[tmm]

Also, remember what the world "economy" means. If you look at it objectively- lower prices are good for the economy.

For too long (and still) we have an anti-economy.

[tmm]

Third thought in a row:

Oil prices were artificially high, now they're artificially low. Both times because of politics and power, not market.

[tmm]

Four:

Welfare is welfare, whether it's subsidized oil or subsidized groceries or subsidized houses.

I was the one paying for all the consumerism from people who were getting rich from inflated wages off of inflated prices.

Now, I get a break.

["W"]

As long as they leave me alone ,my pay alone ,my area alone for next 15 years where I can retire !!

I'm good

[tmm]

In 2008 I was in Florida working in the consumer marine industry for 10 years.

Fuel prices strained the market and the housing crises finished it off.

Both were due to BS market influence. Now I work maintenance in the oilfield and it seems that I'll likely experience similar effects from similarly BS market influences.

One of the certainties I can take from these experiences:

Don't expect to be left alone.

[irokcj5]

[QUOTE=Nickt87;737026]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.

[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.

[irokcj5]

[quote=Nickt87;737113]

Originally Posted by irokcj5

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.

+1000 on that last statement. Good luck, bud.