Oil patch cuts - question

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Wouldn't laying off all these people cause production to reduce, which reduces supply, which would help stabilize prices?

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production doesn't stop overnight when the drilling does, it's going take a while for producing wells to slow

watch rig count numbers for a true predictor of what production will do over the next few years

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We keep hearing about all these cuts to oil and gas companies - have already happened and will happen in the future.

It's well established that supply outstrips demand now.

Wouldn't laying off all these people cause production to reduce, which reduces supply, which would help stabilize prices?

Or, are they just laying off secretaries and repairmen?

Are they just doing more with less? Are all the people they are laying off really not needed and were just fluff from when times were rich?

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This only addresses part of your question, but relatively recent developments in the drilling process over the last few years have created a situation where the reduction in personnel does not correlate to the same drop in production or potential production that it would have even a few years ago. As an example, over the last 3-5 years the time it takes to drill an Eagle Ford well has gone from around 40 days to less than a week, and the other technological improvements mean these newer wells are better producers as well. What that means for a company is that it can do in a week what would've taken easily a month+ in 2012, or in a month it can match a 2012 month with 1/5 the personnel and equipment.