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Global Oil Layoffs Top 100,000 as Job Pilgrims’ Dreams Shatter
Posted on 2/12/15 at 1:52 am
Posted on 2/12/15 at 1:52 am
quote:
Engineers were in high demand in 2012, when oil prices exceeded $100 a barrel, making the move across the world a no- brainer. Within two years, though, oil plunged to less than half the 2012 price and Zappa lost her job as a safety analyst. Now she’s worried her husband, who also works in the commodities industry, could also lose his job.
Such anxieties are rising at a time when the number of energy jobs cut globally have climbed well above 100,000 as once-bustling oil hubs in Scotland, Australia and Brazil, among other countries, empty out, according to Swift Worldwide Resources, a staffing firm with offices across the world.
quote:
The outlook isn’t brightening. After briefly rising above $50 this month, U.S. crude fell again Wednesday to settle at $48.84 a barrel. Citigroup Inc. said oil could drop to “the $20 range” by April as oversupplies build.
Further Tightening
quote:
How long it will take for the job carnage to stop is now the main question confronting industry workers. Executives at companies including BP Plc and Royal Dutch Shell Plc have announced spending cuts of more than $40 billion and assured investors they’re ready to tighten further if the market doesn’t recover significantly.
quote:
Around the North Sea, where drilling is serviced largely from Aberdeen, Scotland and Stavanger, Norway, job cuts now exceed 11,500, according to DNB Markets and Unite, the U.K.’s largest labor union. As many as 30,000 more may disappear, according to Menon Business Economics AS. BP wrote down the value of its North Sea operations by $3.6 billion, and CEO Bob Dudley on Feb. 3 gave dire warnings about the region’s future.
MSN Money
14
Posted on 2/12/15 at 1:54 am to Street Hawk
quote:
Citigroup Inc. said oil could drop to “the $20 range” by April as oversupplies build.
Posted on 2/12/15 at 2:10 am to Jim Rockford
Yeah, that's something I don't know how to feel about. This state would be in a full blown crisis though with that price.
And the OT would be inconsolable.
Posted on 2/12/15 at 2:27 am to Street Hawk
Engineering is a waste of a degree. I've been trying to tell you guys. Its basically on the same level as house keeping or handyman.
Posted on 2/12/15 at 5:34 am to Sentrius
quote:
ah, that's something I don't know how to feel about. This state would be in a full blown crisis though with that price.
The world would be in full blown crisis. Global economic downturn.
Posted on 2/12/15 at 5:34 am to LakeViewLSU
quote:
Engineering is a waste of a degree. I've been trying to tell you guys. Its basically on the same level as house keeping or handyman.
Yeh right
Posted on 2/12/15 at 5:44 am to redstick13
quote:
Global Oil Layoffs Top 100,000 as Job Pilgrims’ Dreams Shatter quote: ah, that's something I don't know how to feel about. This state would be in a full blown crisis though with that price. The world would be in full blown crisis. Global economic downturn.
Absolutely. The "I can fill my car for $30" crowd won't even need to spend that because they won't have a dry cleaning, bartending, banking, teaching, engineering, managing etc...job to drive to.
That is not a good forecast in an extremely shaky global economy as it is.
Now a full frontal assault by Putin in Ukaraine and Iran launching a tactical nuclear weapon towards Isreal will get the price up. War is always good for the economy.
Posted on 2/12/15 at 5:53 am to Martini
The US is living in a shell right now enjoying a good economy while many parts of the world are not. Everyone better hope all these smaller companies (like Goodrich in TMS) aren't overextended with huge bank loans. It won't be good when all of them start defaulting on their loans.
Posted on 2/12/15 at 5:58 am to redstick13
Big Oil is too big to fail.
Posted on 2/12/15 at 6:01 am to fightin tigers
quote:so was Rome
Big Oil is too big to fail.
Posted on 2/12/15 at 6:03 am to ForeverLSU02
Last I checked, Rome is still a city.
Posted on 2/12/15 at 6:05 am to Street Hawk
record profits for years, huge booms...
One downturn.
then layoffs?
The price will bounce back up. Maybe some of these companies over extended themselves.
I know some people want us all to think low oil prices are the end of the world, because it's the end of THEIR world. Gasoline has shot up thirty cents in the last week.
I don't see how these companies weren't better prepared for a downturn. It is a shame that people are losing jobs, and I think gas should stick around $2.50 but I don't buy into the doom and gloom that most oil and gas people are selling. Plus, my industry performs better in recessions and economic downturns anyway.
(but I do feel empathy towards the local OG guys, just don't see how companies weren't insulated for this. It's been what, two months since oil dropped...
They couldn't sustain for two months?
One downturn.
then layoffs?
The price will bounce back up. Maybe some of these companies over extended themselves.
I know some people want us all to think low oil prices are the end of the world, because it's the end of THEIR world. Gasoline has shot up thirty cents in the last week.
I don't see how these companies weren't better prepared for a downturn. It is a shame that people are losing jobs, and I think gas should stick around $2.50 but I don't buy into the doom and gloom that most oil and gas people are selling. Plus, my industry performs better in recessions and economic downturns anyway.
(but I do feel empathy towards the local OG guys, just don't see how companies weren't insulated for this. It's been what, two months since oil dropped...
They couldn't sustain for two months?
Posted on 2/12/15 at 6:06 am to Street Hawk
I am never a chicken little, but the sky is precariously close to falling.
Posted on 2/12/15 at 6:06 am to fightin tigers
On a capital level the larger oilfield companies are sitting on mountains of cash due to most holding off investment spending during the Obama administration. Unfortunately, layoffs are still happening but it's mostly done to protect its stock price.
Posted on 2/12/15 at 6:10 am to fightin tigers
quote:
Last I checked, Rome is still a city.
Yes, but not an empire.
Posted on 2/12/15 at 6:11 am to redstick13
quote:
The world would be in full blown crisis. Global economic downturn.
Some parts of this country will be in crisis, as will certain other regions of the world. Meanwhile, many other areas will benefit from tens of trillions of dollars being freed up as the cost of producing and transporting nearly everything goes down.
I'm not gloating over the oil patch's misfortune, but it is what it is, and far from being a disaster, it's a net economic plus for most of the world.
Posted on 2/12/15 at 6:12 am to roguetiger15
quote:
, layoffs are still happening but it's mostly done to protect its stock price.
exactly..
Where is all this capital they took in?
I was always taught a company should have 1.5x the fixed expenses for two operating months, at minimum on hand at all times. I could, with my tiny group not run a single job for two months, and not have a single layoff.
I feel bad for the guys losing jobs, but again record profits for years and years. Someone has the money. Rather than give their wealth up, they would rather fire thousands in the industry.
Posted on 2/12/15 at 6:13 am to Napoleon
quote:
1.5x the fixed expenses for two operating months
so three months?
Posted on 2/12/15 at 6:15 am to Jim Rockford
quote:
it's a net economic plus for most of the world.
and this is also true.
Our profits have gone up since we spend 35% less on fuel now. That was the number three expense I had.
Shipping and other fixed costs haven't really dropped as they should to match though. We feel more doom and gloom here, simply because so many here are in the industry. Everyone else, is seeing a better return as they are paying less to operate, profits are higher and costs are down. OG guys don't want to see this, but it is very true.
Posted on 2/12/15 at 6:16 am to Street Hawk
Oil being near $100/barrel is only a recent phenomenon, as it has been closer to $20-30 for the most of this century. Just because some oil companies overextended themselves because oil was overpriced doesn't mean it's the end of the world.
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