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Started By
Message
re: U.S. Oil Majors cutting jobs despite pro-oil & gas policy changes
Posted on 9/15/25 at 10:40 am to boogiewoogie1978
Posted on 9/15/25 at 10:40 am to boogiewoogie1978
quote:
More profit. And they wonder why people hate them.
What are their profit margins compared to other industries? Check that out, and then get back to me on why people should hate them.
Gross profit alone doesn't tell the entire story, and yes...companies need to show profit so they can gain shareholders to keep investing in them to develop new projects.
3
Posted on 9/15/25 at 10:42 am to Powerman
quote:
And oil prices are subject to the decisions of OPEC nations as well
To some extent. They were unable to raise the prices when they tried.
They have to balance covering their social welfare programs with enough sales.
Posted on 9/15/25 at 10:52 am to ragincajun03
They do that shite every few years.
I hope the cost savings out weigh the loss of technical knowledge they loose.
Seems like a 10-12 year cycle.
I hope the cost savings out weigh the loss of technical knowledge they loose.
Seems like a 10-12 year cycle.
Posted on 9/15/25 at 10:54 am to ragincajun03
Here's what you need to know: pretty much the very top aim of the administration is to have oil prices be a lot lower (like, in the 40s). Don't be surprised when it actually happens.
Posted on 9/15/25 at 11:09 am to ragincajun03
quote:
Gross profit alone doesn't tell the entire story, and yes...companies need to show profit so they can gain shareholders to keep investing in them to develop new projects.
Oil and gas stocks are not growth stocks. They haven’t been for a long time. They’re nothing more than dividend stocks now days.
Posted on 9/15/25 at 11:12 am to Big Scrub TX
quote:
Here's what you need to know: pretty much the very top aim of the administration is to have oil prices be a lot lower (like, in the 40s). Don't be surprised when it actually happens.
The administration can want $10 oil all it wants, but you’re not going to see majors drive oil to a net loss price. Exxon is cash positive around $45 a barrel right now, with an aim for being so in the $30s in the next ten years. No one, and I mean no one, cares or will push for a cheap price just because an administration wants one.
I want a $50 iPhone, but that isn’t happening.
Posted on 9/15/25 at 11:20 am to Pfft
“They do that shite every few years.”
Joined the industry in the 80…
Many of the comments about improved technology and workflow are valid .. but this has been going on forever… heck we use to map with paper.. pencils .. my new tech was an electric pencil sharpener and electric eraser… had to argue with accounting for that eraser.
We all went through the Unix.. dos.. computing workstation.. pc.. neural networks ( baby AI .. from the 90)…
Industry does this every few years.. price goes up.. everyone drill.. little companies form.. Saudi gets mad .. open their legacy oil valves.. prices goes down. Ma goes out of business .. pa gets bought out.. big oil lays off.. service companies lay off ..
Wash repeat .. and fwiw you only hear about the big layoffs in the news.. but I guarantee there are many more that happen quietly and the companies just keep the back door oiled.
Bottom line .. all about economics .. you are just a column in the HR spreadsheet.
Joined the industry in the 80…
Many of the comments about improved technology and workflow are valid .. but this has been going on forever… heck we use to map with paper.. pencils .. my new tech was an electric pencil sharpener and electric eraser… had to argue with accounting for that eraser.
We all went through the Unix.. dos.. computing workstation.. pc.. neural networks ( baby AI .. from the 90)…
Industry does this every few years.. price goes up.. everyone drill.. little companies form.. Saudi gets mad .. open their legacy oil valves.. prices goes down. Ma goes out of business .. pa gets bought out.. big oil lays off.. service companies lay off ..
Wash repeat .. and fwiw you only hear about the big layoffs in the news.. but I guarantee there are many more that happen quietly and the companies just keep the back door oiled.
Bottom line .. all about economics .. you are just a column in the HR spreadsheet.
Posted on 9/15/25 at 11:21 am to Pfft
(no message)
This post was edited on 9/15/25 at 11:23 am
Posted on 9/15/25 at 11:26 am to AllDayEveryDay
quote:
Seems they are realizing they didn't need all the people they acquired when buying all those smaller companies.
MBA 101
Acquire company
Eliminate inevitable redundant roles
Do more with new/same assets at lower fixed cost per unit
This is as new to O&G (or business in general) as Germans are to WWs.
Oil price forward curve, M&A valuation, scaling…
May technical, economic, commercial, organizational decisions always Trump political ones.
Pun may or may not be intended.
Posted on 9/15/25 at 11:49 am to slidingstop
quote:I wondered about that too. Some, less than majority, of these "big" companies played the Green Game and found out it was rigged.
how many of these layoffs are in "green energy" that the majors have been abandoning or scaling back on due to the realization that "green energy" isn't what its cracked up to be?
There's also other factors, coming at the same time:
- AI replacing some people? (O&G is heavy data driven)
- Low demand from what looks like a slowing economy (lag & reduction in govt spending? tariffs? all of above)?
- Production did not really dip for years now
- Halt to exports (lag) during the late Biden years and haven't caught back up?
Posted on 9/15/25 at 11:55 am to Powerman
quote:
Drill baby drill is one of the dumbest chants ever
Yep.
Posted on 9/15/25 at 11:55 am to ragincajun03
This is typical ups & downs of the oilfield. That's why I got out after 15 years. I'm much happier in my current job.
Posted on 9/15/25 at 12:00 pm to castorinho
quote:
Ehh, they're choosing to, in the name of efficiency. Which is fine, but to say they're forced is a bit too much.
Nobody had a gun to their head, sure. But their primarily obligation is to act in the best financial interests of the shareholders.
Big haircuts all around to stop that bleeding 100% of the time, because the impact of not doing so could drag the company into a serious bind of investors bail and their market cap tanks too far.
Posted on 9/15/25 at 12:10 pm to CollegeFBRules
quote:It will happen in spite of what oil majors may or may not want.
The administration can want $10 oil all it wants, but you’re not going to see majors drive oil to a net loss price. Exxon is cash positive around $45 a barrel right now, with an aim for being so in the $30s in the next ten years. No one, and I mean no one, cares or will push for a cheap price just because an administration wants one.
Posted on 9/15/25 at 12:17 pm to Big Scrub TX
Possibly.. but not driven by US politics..
“Examples of costs by region/type
Middle East (Onshore): Some of the cheapest production, with costs often under $10 per barrel.
US Shale: Costs vary but are generally higher, with estimates around $50-$60 for some wells.
Canadian Oil Sands: Very expensive, with breakeven prices in the $70s per barrel.
Offshore Norway: Higher costs than onshore Middle Eastern fields, at around $21 per barrel.
Basic economics for products and opportunities for mergers and acquisitions
“Examples of costs by region/type
Middle East (Onshore): Some of the cheapest production, with costs often under $10 per barrel.
US Shale: Costs vary but are generally higher, with estimates around $50-$60 for some wells.
Canadian Oil Sands: Very expensive, with breakeven prices in the $70s per barrel.
Offshore Norway: Higher costs than onshore Middle Eastern fields, at around $21 per barrel.
Basic economics for products and opportunities for mergers and acquisitions
Posted on 9/15/25 at 12:22 pm to Thecoz
quote:
Middle East (Onshore): Some of the cheapest production, with costs often under $10 per barrel.
The thing that is still helping us here is it sounds like the Saudi government needs something like $80+ to balance their budget with all the programs they have and want. Gotta build that 100 mile long city on a bridge.
Posted on 9/15/25 at 12:24 pm to Potchafa
quote:
Been in it for 27 years now. It's been very fruitful and provided a life I would have never dreamed of. Sacrificing half my life out here is worth for my family!
Respect!
Posted on 9/15/25 at 12:26 pm to ragincajun03
Every company is cutting jobs no matter profitability. Just look at Microsoft. The market is absolutely horrid.
My old company have been laying off for two years. Finally hit me in June. Luckily I had already started looking around and just recently landed at a great company with a nice pay increase and fully remote. Ended well for me fortunately. Lots of my other ex-coworkers have not been as fortunate
My old company have been laying off for two years. Finally hit me in June. Luckily I had already started looking around and just recently landed at a great company with a nice pay increase and fully remote. Ended well for me fortunately. Lots of my other ex-coworkers have not been as fortunate
This post was edited on 9/15/25 at 12:36 pm
Posted on 9/15/25 at 12:28 pm to Powerman
quote:
Drill baby drill is one of the dumbest chants ever
No it’s not. It perfectly encapsulates the policies to make energy more abundant - lowering regulations, making more leases available, etc.
Posted on 9/15/25 at 12:32 pm to ragincajun03
quote:
What are their profit margins compared to other industries? Check that out, and then get back to me on why people should hate them.
quote:
Industry Typical Net Profit Margin
Oil & Gas (Upstream) 10–30%
Technology (Software) 20–35%
Technology (Hardware) 5–15%
Pharmaceuticals 15–25%
Financial Services 10–20%
Retail (General) 2–5%
Automotive 3–8%
Telecommunications 8–12%
Utilities 5–10%
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