re: Oil field layoffs are really hitting SLa

You heard wrong

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When do we start calling for the heads of other industries for making money while they can? I've never seen that before. But big oil and their record profits have been the fricking devil fo

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Good grief you are ignorant. If oil companies have so much control over gas prices, then why are they killing their own business right now? Do you not understand commodity markets?

Ignorant and a communist, too.

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he First Cut

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Dude... It was sarcasm.

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I'm just for the working man period

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So the white collar employee doesn't work?

Rediculous[sic].

During boom times, do any of these companies take their profits and invest them elsewhere, or do they just continually reinvest in drilling and field development?

You would think that some would have some cash saved up after 5+ years of drilling at $100 oil in the Eagle Ford and Bakken-but it seems they just continue to expand, hiring more people to expand operations, and now are in over their heads.

Much of their money goes towards expansion, but a lot of it goes towards continuing normal operations and developing technology as the easy to find/produce oil is used up. Plus, many of these companies actually increased dividends significantly over the past few years. Looking at XOM, they steadily increased as they went from $.42 per share each quarter in 2009 to $.73 recently so lots of the money went back to shareholders.

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A lot of the young guys who had never been through a downturn were surprised the most. They were out partying and buying boats and ridiculously expensive trucks and things along those lines during the boom, instead of saving any of it.

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Like someone said before- it's cyclical. The older guys always tell the younger guys to save their money bc when it's bad it's damn bad. The younger guys who don't listen get to experience what's happening right now. They'll get laid off, the older guys get their early retirement, and the younger guys will be the older guys warning the new guys about the next downturn.

Really damn sorry for anyone losing their job right now. We're overseas (husband in O&G), but will likely be sent back home which scares the hell out of me. Best to everyone involved

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Sounds like the fats being trimmed. Good.

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A year ago, yes. Now- no. Essential positions are being let go, and their work is put upon another position who now has three jobs. Yes, he still has a job. Yes, they're happy to have one and will do whatever it takes. But it's not like middle mgmt guys who have nothing to do, or nonessential labor are the only ones being trimmed. Far from it.

Transcanada announced yesterday they're cutting 20% of their management. Rank and file layoffs to follow.

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but a lot of it goes towards continuing normal operations

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This is what people outside of the industry fail to understand. Yes, the annual income statements are eye-popping, but vastly larger portion of their annual profits are reinvested in capital upkeep of existing assets than in other industries. What so many don't understand is that hydrocarbon wells continually require work over to continue the ability to flow. That capital investment comes from the "record profits" that communist outsiders complain about. Without the profits, there's no capital to reinvest, and production quickly declines. When production declines, demand is met elsewhere, as in the Middle East. We were finally gaining independence from the region and that trend will now reverse.