re: Halliburton just have a round of layoffs I’m guessing?

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I thought shale was profitable at $40/barrel? I know initially it wasn’t, but I know places have gotten more and more efficient.

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It's entirely dependent on the basin. Delaware basin is the most economical but I believe they need around $35 to break even. I think Delaware may be the only basin that can turn a profit at $40.

One company that is in some pretty serious trouble is Apache. They went all in on the Alpine High play and it was full of wet gas that can't be sold and drastically shortens the production lifespan of the oil. They have shut down all of their US upstream operations.

I almost went to work for Gordon awhile back before I got picked up. Glad I didn't now. I have given up on ever getting back to D&C.

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One company that is in some pretty serious trouble is Apache. They went all in on the Alpine High play and it was full of wet gas that can't be sold and drastically shortens the production lifespan of the oil. They have shut down all of their US upstream operations.

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Apache definitely screwed up on Alpine high but they also have good assets that can make money at a $40's price environment in Egypt and Suriname discoveries. There are a lot of others in way worse shape, starting with crying Harold Hamm's Continental Resources, Mark Papa's failed Centennial, and OXY who looks like they made the mistake of the century. I guess 90% of these publics will be bankrupt within a year, some should probably file now.

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Apache definitely screwed up on Alpine high but they also have good assets that can make money at a $40's price environment in Egypt and Suriname discoveries. There are a lot of others in way worse shape, starting with crying Harold Hamm's Continental Resources, Mark Papa's failed Centennial, and OXY who looks like they made the mistake of the century. I guess 90% of these publics will be bankrupt within a year, some should probably file now.

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You're right about Apache. They may survive this with their overseas assets but they did shut down their North Sea operations too. Continental is facing certain doom. Oxy is one that I'm following closely. They made an epic blunder with that Anadarko acquisition. Oxy has a pretty big presence overseas but they are probably the largest operator on some very shaky ground. You would have to think they are staring straight at bankruptcy or getting bought up but how many companies are big enough to buy up Oxy's assets? Maybe they will split off their US assets and just become international?

Halliburton lays off 1,000 workers at Houston headquarters

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Houston-based Halliburton has laid off 1,000 workers at its headquarters.

Company officials said in a statement released to KPRC 2 on Wednesday the layoffs were due to “the unforeseeable, dramatic” downturn in energy markets caused by the coronavirus. “The reductions are in addition to layoffs across the Company’s global operations,” the statement read. “These actions are difficult but necessary as we adjust our business to customers’ decreased activity.”

This is just the latest round of layoffs the company has made since announcing a 60-day furlough of 3,500 workers in March.

More than 200 workers at Halliburton facilities in Oklahoma and 36 workers at a facility in Louisiana were laid off in April.

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When you "this" I assume you are talking about the oil collapse.

Yes it will. Many of the people that I know that have lost their jobs all expect to find something before the end of year back into O&G. Most people think, it will comeback enough by year end to start bringing people back to work.

If you are just talking about Halliburton, then no. The specific layoffs from Halliburton are too small to make a major difference.

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MI Swaco is SLB not HAL.

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that was my mistake, I read HAL and had SLB on the brain

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But yes SLB drives every company they buy into the ground. Look at Pathfinder.

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when I was at SLB I was in Testing and there were a ton of Big Blue Thru and Thru types from all over the world in our office. They had incredible stories of incompetence and sheer stupidity of SLB destroying acquisitions around the world. I thoroughly enjoyed those discussions.

Retired from Hal after 35 years in 2016. In 1982 the price collapsed and we laid off 40% of the folks in our shop in SE Louisiana. People said the price was never going to go back up. When it went back up over 60 they said it would never come down. It did. And they said it would never go back up. When it hit 100 bucks a barrel they said the same. This has been going on for years. This time is worse because it is both a supply and a demand issue. These companies need to do what they have to to remain solvent, but we need to look at the long term. I know the Saudis and Russians are. And they are not thinking oil is going to stay at $25/bbl for long. They will watch us lay off highly trained workers and decommission expensive equipment, maybe even plug and abandon offshore fields until our ability to resume production is severely impacted and then they will raise the price. I am all for burning up their cheap oil in the short term, but it would be foolish to let them cripple the US oil business long term, for both economic and national security reasons.

I'm still gainfully employed, bozo.