# Schlumberger 9,000 layoff?



## redexpress (Apr 5, 2010)

Just saw on Channel 13 that Schlumberger is laying off 9,000. I didn't catch if it was all at one time, and worldwide or what. Dang that is a bunch.


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## Lat22 (Apr 7, 2005)

Ouch. I hadn't seen that yet. This is why $1.67 gasoline is a bad thing.


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## Mr. Breeze (Jan 6, 2005)

IRS...layed off 12,000.


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## Bankin' On It (Feb 14, 2013)

Coca Cola laid of 1,200 worldwide and made national news. What is that...1%?


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## WoundedMinnow (Oct 11, 2011)

Its just starting!! Service companies are the canary in the coal mine or oil patch.


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## Wade Fisher (May 22, 2006)

Present.

Laid off yesterday. 

Perhaps more at play than the price per gallon.


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## w_r_ranch (Jan 14, 2005)

I'm just glad I'm retired... I saw 17 layoffs during my time there, it's never pretty.


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## poppadawg (Aug 10, 2007)

Gonna be alot more in the industry. Not good


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## BBCAT (Feb 2, 2010)

Yet the news industry keeps praising the falling gas prices. The uninformed don't see the domino effect in the background.


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## scwine (Sep 7, 2006)

Bad deal.......I will be unemployed Feb. 1st...the gig ends.


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## Tortuga (May 21, 2004)

Just the first 'ripple'....

Tsunami is just down the road...


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## Deany45 (Jul 24, 2011)

Just saw the story of Facebook from Channel 13. Reading the comments made me want to go punch people in the face. There are a bunch of uninformed idiots out there that have no idea how this affects everyone in this area.


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## cman (Apr 17, 2009)

Surprised oil companies are so susceptible to fluctuations after so many decades of practice. Us little guys have to prepare and weather fluctuations. 
Oil companies seem to gorge themselves on expansion in fat times like degenerate gamblers and then react so quickly with layoffs during downturns. 

I live in the energy corridor. It seems like no industry is as quick to expand as the oil industry.


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## OnedayScratch (May 23, 2012)

Yup. Kid EIT said yesterday, "boy I sure am happy gas is $1.80". I looked at him and said, no you're not". Then explained trickle down....


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## Goags (May 28, 2004)

Read this in RStone today(it comes free to the office, tho we don't display it)...maybe worth a thought? Not expecting alot of agreement from those in the industry.
http://www.rollingstone.com/politic...t-why-we-have-to-kiss-off-big-carbon-20150114


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## Jolly Roger (May 21, 2004)

cman said:


> Surprised oil companies are so susceptible to fluctuations after so many decades of practice. Us little guys have to prepare and weather fluctuations.
> Oil companies seem to gorge themselves on expansion in fat times like degenerate gamblers and then react so quickly with layoffs during downturns.
> 
> I live in the energy corridor. It seems like no industry is as quick to expand as the oil industry.


"expansion" as you call it is where oil companies make there money. They do not make money sitting still, wells play out. If it is not profitable to drill, no reason to drill. If who ever you worked for started losing money because the price of your product crashed, they would lay you off also.

The negative effect on Texas will be felt in ever sector. This is only one of what will be many examples of contracts with oil companies being cancelled.


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## cman (Apr 17, 2009)

By expansion I was referring to the millions of sf of office space in construction in my zip code alone.

http://wolffcompanies.com/news/construction-cranes-are-flying-in-the-energy-corridor/


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## Jolly Roger (May 21, 2004)

cman said:


> By expansion I was referring to the millions of sf of office space in construction in my zip code alone.


Takes a LOT of people to drill for oil, people take space.


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## cman (Apr 17, 2009)

No offence JR. You are obviously passionate about the oil industry. I'm not dissagreeing with your posts as they are pretty obvious. 
Expand- make money. 
Lose thousands of jobs- effect the economy. 

Just saying - Would be great if oil industry wasn't so unstable/all or nothing. Part of the fault is their own. Slow and steady wins the race at the end of the day right?


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## jamisjockey (Jul 30, 2009)

Middle east is trying to put Russia out of business and stick a knife in our shale. Problem is, if the ruble collapses, I don't see Putin not starting a shooting match over it.


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## InfamousJ (May 21, 2004)

Just think if you were a certified rig driller and nurse. You'd never go without a job and could switch every few years for a change in scenery. Hope those laid off get back on their feet soon with backup plans.


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## dwycoff (May 25, 2004)

jamisjockey said:


> Middle east is trying to put Russia out of business and stick a knife in our shale. Problem is, if the ruble collapses, I don't see Putin not starting a shooting match over it.


This is it - Saudia Arabia keeping their market share and driving the fracking companies out of business. Russia, Iran, and Venezuela will all be hit very hard because their economies depend on high oil prices. I don't now if tariffs is the right answer but something should be done to protect American business.


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## Tortuga (May 21, 2004)

Dunno about tariffs... We still import about half of the oil we use..

_"In point of fact, the United States has become ever more dependent upon imported or foreign oil. A mere thirty years ago, 28% of the oil consumed in the United States was imported. Today nearly 60% of the oil utilized and consumed in the United States is imported from other countries."

http://www.quoteoil.com/oil-imports.html

http://www.quoteoil.com/
_


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## dwycoff (May 25, 2004)

This from Bloomberg - â€œRising monthly crude oil production, which will approach 10 million barrels a day in late 2015, will help cut U.S. fuel imports to just 21 percent of domestic demand, the lowest since 1968,â€ Sieminski said.
http://www.bloomberg.com/news/2014-09-10/45-year-high-u-s-oil-output-may-cut-pump-price-imports.html

Point is just when we were close to getting self sufficient our "friends' the Saudis are doing their best to make sure our dollars go to them rather than keeping in the country.


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## Rubberback (Sep 9, 2008)

cman said:


> No offence JR. You are obviously passionate about the oil industry. I'm not dissagreeing with your posts as they are pretty obvious.
> Expand- make money.
> Lose thousands of jobs- effect the economy.
> 
> Just saying - Would be great if oil industry wasn't so unstable/all or nothing. Part of the fault is their own. Slow and steady wins the race at the end of the day right?


Agree!


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## InfamousJ (May 21, 2004)

Tortuga said:


> Dunno about tariffs... We still import about half of the oil we use..
> 
> _"In point of fact, the United States has become ever more dependent upon imported or foreign oil. A mere thirty years ago, 28% of the oil consumed in the United States was imported. Today nearly 60% of the oil utilized and consumed in the United States is imported from other countries."
> 
> ...


and just how much of that oil do your oil lamps burn at the castle?


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## Goags (May 28, 2004)

dwycoff said:


> This from Bloomberg - â€œRising monthly crude oil production, which will approach 10 million barrels a day in late 2015, will help cut U.S. fuel imports to just 21 percent of domestic demand, the lowest since 1968,â€ Sieminski said.
> http://www.bloomberg.com/news/2014-09-10/45-year-high-u-s-oil-output-may-cut-pump-price-imports.html
> 
> Point is just when we were close to getting self sufficient our "friends' the Saudis are doing their best to make sure our dollars go to them rather than keeping in the country.


And at the same time, the US oil industry is pushing to export our Tx sweet crude, because "we're not geared up to process that", but are for the Saudi's heavy crude?


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## Tortuga (May 21, 2004)

InfamousJ said:


> and just how much of that oil do your oil lamps burn at the castle?


Moot point, Infamoose....we use whale oil in our indoor lamps..less smokey than coal oil.


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## longhornbubba (Jul 7, 2006)

It's all about profits and shareholders nothing to do with anything else.


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## czbrian (Aug 16, 2011)

longhornbubba said:


> It's all about profits and shareholders nothing to do with anything else.


You would prefer they not lay anyone off and just have a bunch of employees with nothing to do sitting a big room? I'm pretty sure GM had that for a while prior to their bankruptcy thanks to their union contracts.


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## longhornbubba (Jul 7, 2006)

They all have something to do the profit margin is lower than they like.


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## dbarham (Aug 13, 2005)

They could stand to layoff some safety folks that campus in Rosharon has some pretty intense and ridiculous rules gets more foolish every yr I go there to work.


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## redexpress (Apr 5, 2010)

Goags said:


> And at the same time, the US oil industry is pushing to export our Tx sweet crude, because "we're not geared up to process that", but are for the Saudi's heavy crude?


That is correct. My plant went to Mayan mud years ago. A lot of dollars went into that, and it didn't happen overnight.
Last week the idiots on Fox26 Houston morning news were cheering when they reported that crude dropped again. I emailed them to remind them they were in the refining/petrochemical center of the world. I would be cheering when their advertising rates fell in half. No response.


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## longhornbubba (Jul 7, 2006)

So start lay offs at the top the ceo's make millions and produce nothing.


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## Mont (Nov 17, 1998)

I feel for you guys out of work. Next to family, having a job is the most important thing for me. I wish all of y'all luck in finding something else.


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## haparks (Apr 12, 2006)

and to think i applied just a couple of months ago


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## Goags (May 28, 2004)

redexpress said:


> That is correct. How long you reckon it takes to modify a refinery to run different crude stocks? A long time. My plant went to Mayan mud 20 years ago. A lot of dollars went into that, and it didn't happen overnight.
> Last week the idiots on Fox26 Houston morning news were cheering when they reported that crude dropped again. I emailed them to remind them they were in the refining/petrochemical center of the world. I would be cheering when their advertising rates fell in half. No response.


I don't doubt it takes a long time to modify refineries. My point was the idea of "oil independence"....never gonna happen if we don't retool for what we're producing.


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## Haute Pursuit (Jun 26, 2006)

longhornbubba said:


> So start lay offs at the top the ceo's make millions and produce nothing.


They produce the jobs.


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## Jolly Roger (May 21, 2004)

cman said:


> Just saying - Would be great if oil industry wasn't so unstable/all or nothing. Part of the fault is their own. Slow and steady wins the race at the end of the day right?


Sounds great, except for one little detail. Oil prices do not stay slow and steady. If the price of oil went up slowly then went down slowly then slow and steady would work great for the oil bizness. But just not the way the real world works

I am not passionate about the business, connected to it from exploration, midstream to refining, but not connected enough to lose my job over. My family learn a long time ago not to put all the eggs in one basket, and taught the lesson well. If the past is any indication of what is to come, the service industry takes the largest hit from oil crashes in Texas. Both oil related and non.


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## redexpress (Apr 5, 2010)

Goags said:


> I don't doubt it takes a long time to modify refineries. My point was the idea of "oil independence"....never gonna happen if we don't retool for what we're producing.


 I agree 100%. But the "shale revolution" is very recent development. It takes a while for big multinationals to study the economics and figure how to turn the big ship. By then it could be too late.
The price of crude dropping effects much more than just gasoline price. Natural gas, NGL's, LNG, etc. economics are all screwed up. It will take a while for the industry to digest what has happened. The most expensive wells (shale fractured) have been the ones producing a lot of condensates, NGL, and Nat Gas. The shale fracturing will be the first drilling to stop, except for those in the sweet spots and have to drill contracts.
Add to all this mess offshore Gulf of Mexico will start ramping up production this year. Those wells drilled after the BP disaster are coming on line. There is too much invested in those wells to shut them down.


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## scwine (Sep 7, 2006)

Mont said:


> I feel for you guys out of work. Next to family, having a job is the most important thing for me. I wish all of y'all luck in finding something else.


Thank you Mont...I'm 45 and really can't think of a time I have been in this position. I have my back against the wall, and I will survive.


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## Bearwolf34 (Sep 8, 2005)

It seems job stability in any business is a thing of the past. My employeer has no connection to oil/gas imdustry other than our equipment and trucks we run...yet weve lost about a third of our employees in the last 7 months and are in the process of getting rid of a whole business dept. employees are just another commodity.

Should have gotten a goobermint job, then again was told im the wrong color and not a female..smh


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## Jolly Roger (May 21, 2004)

Bearwolf34 said:


> It seems job stability in any business is a thing of the past. My employeer has no connection to oil/gas imdustry other than our equipment and trucks we run...yet weve lost about a third of our employees in the last 7 months and are in the process of getting rid of a whole business dept. employees are just another commodity.
> 
> Should have gotten a goobermint job, then again was told im the wrong color and not a female..smh


Every business in Texas is connected to oil/gas, it is the main driver of the state's economy.

Texas sells more oil to the US then Saudi Arabia.


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## Tortuga (May 21, 2004)

redexpress said:


> .
> Add to all this mess offshore Gulf of Mexico will start ramping up production this year. Those wells drilled after the BP disaster are coming on line. There is too much invested in those wells to shut them down.


Don't bet the farm on offshore drilling.....

_"Transoceanâ€™s 29 ultra-deepwater drilling rigs had accumulated 296 combined days of being out of service in the third quarter. That was an enormous increase over the previous two quarters â€" 110 days of out-of-service days in quarter two, and just 98 days in the first quarter. Even worse, the company expects the rigs to be inactive for a total of 435 days in the fourth quarter."
_


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## Marlingrinder (Mar 15, 2012)

On the bright side theres gonna be great deals on boats in the next few months!


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## FoghornLeghorn (Sep 11, 2012)

I pray for all you guys out there facing layoffs. Financial fear is the worst fear I ever deal with. Not being able to provide for your family is extremely stressful for us men to process mentally.


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## Goags (May 28, 2004)

FoghornLeghorn said:


> I pray for all you guys out there facing layoffs. Financial fear is the worst fear I ever deal with. Not being able to provide for your family is extremely stressful for us men to process mentally.


Absolutely!


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## redexpress (Apr 5, 2010)

Tortuga said:


> Don't bet the farm on offshore drilling.....
> 
> _"Transoceanâ€™s 29 ultra-deepwater drilling rigs had accumulated 296 combined days of being out of service in the third quarter. That was an enormous increase over the previous two quarters â€" 110 days of out-of-service days in quarter two, and just 98 days in the first quarter. Even worse, the company expects the rigs to be inactive for a total of 435 days in the fourth quarter."
> _


 Reading material:
https://rbnenergy.com/tubular-bells-gulf-of-mexico-oil-gains-exorcise-macondo-s-ghosts


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## 410MAN (Apr 26, 2005)

I'm in N East Tx, been here over 60 yes. Seen it go thru all cycles, been the floor covering biz 40+ yes. Been thru very slow times , we even rely on oil biz for customers , just tight up belt & hope ya got $ stuck back. .


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## Stuart (May 21, 2004)

Marlingrinder said:


> On the bright side theres gonna be great deals on boats in the next few months!


Bingo. And side by sides and deer leases and fancy trucks.


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## Texas Jeweler (Nov 6, 2007)

*Lay offs*



redexpress said:


> Just saw on Channel 13 that Schlumberger is laying off 9,000. I didn't catch if it was all at one time, and worldwide or what. Dang that is a bunch.


Halliburton, BP, Enterprise Products,,,it is coming on.


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## Tortuga (May 21, 2004)

redexpress said:


> Reading material:
> https://rbnenergy.com/tubular-bells-gulf-of-mexico-oil-gains-exorcise-macondo-s-ghosts


Thanks...I feel better now...I sure hope your guy is smarter than my guy.


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## redexpress (Apr 5, 2010)

Tortuga said:


> Thanks...I feel better now...I sure hope your guy is smarter than my guy.


doubtful


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## JDubya (Sep 26, 2012)

Stuart said:


> Bingo. And side by sides and deer leases and fancy trucks.


Maybe if I worked for Schlumberger I could afford that stuff


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## redexpress (Apr 5, 2010)

Texas Jeweler said:


> Halliburton, BP, Enterprise Products,,,it is coming on.


 Yep. I'm good I hope. Collecting a pension.
But, the son in law got laid off yesterday. 
Electrical Engineer. Engineering firm. Oil & Gas. 
Y'all hang on to your shorts, it could get ugly.
But it could pop right back in a few months. Maybe?


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## Main Frame 8 (Mar 16, 2007)

Best wishes to you guys / gals impacted by this.

Ran this race a few years back with the sub-prime automobile lending game. 

We're back in the game today but it was frustrating during the down times. 

Hate looking over my shoulder, waiting on the next cyclical event but that's the game we all play I guess.


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## Bird (May 10, 2005)

I think Texas will weather this pretty good. The bulk of the issue is from reduced global demand causing a market price correction. The US will continue to grow and use oil. I think the US will rebound faster than other countries, especially China which I suspect will suffer due to inflation in their economy. Being that China is an export driven economy with a global slowdown, especially in Europe and developed regions of Asia, they (China) are going to feel the hurt. The US is and has been for a very long time, a consumer economy. Because we produce a lot of oil and use a lot of oil I think we'll see a market price correction and the price of oil will rebound. Our economy and industry is probably more stable than most of the other major economies in the world. I would expect the cheaper fuel prices to have a trickle up effect on the economy and as oil prices rebound to a market corrected price, then oil companies and related service industries will start rehiring and then the trickle down effect to come into play. I just wish I knew when.


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## redexpress (Apr 5, 2010)

Bird said:


> I think Texas will weather this pretty good. The bulk of the issue is from reduced global demand causing a market price correction. The US will continue to grow and use oil. I think the US will rebound faster than other countries, especially China which I suspect will suffer due to inflation in their economy. Being that China is an export driven economy with a global slowdown, especially in Europe and developed regions of Asia, they (China) are going to feel the hurt. The US is and has been for a very long time, a consumer economy. Because we produce a lot of oil and use a lot of oil I think we'll see a market price correction and the price of oil will rebound. Our economy and industry is probably more stable than most of the other major economies in the world. I would expect the cheaper fuel prices to have a trickle up effect on the economy and as oil prices rebound to a market corrected price, then oil companies and related service industries will start rehiring and then the trickle down effect to come into play. I just wish I knew when.


 I would go along with that. Also, the big ethylene plant construction projects will soak up some of the skilled labor. 
When the rig laydowns start lowering output, we will get a bounce back.
This would be a good time for the super majors to start buying up smaller producers. Gain a lot of acreage for when the good times come back.


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## Deany45 (Jul 24, 2011)

redexpress said:


> I would go along with that. Also, the big ethylene plant construction projects will soak up some of the skilled labor.
> When the rig laydowns start lowering output, we will get a bounce back.
> This would be a good time for the super majors to start buying up smaller producers. Gain a lot of acreage for when the good times come back.


Yep. Now is the time to buy stock in the majors. They will survive and thrive again.


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## Payne346 (Jun 14, 2014)

Texas Jeweler, it's already started..... Enterprise has laid off around 100 folks so far. Not good for any of us.


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## Zeitgeist (Nov 10, 2011)

All you have to do is look at a chart to fathom the significance of the decline in the price of oil. In 6 months, the price has dropped 55%. This is a big deal. Layoffs mentioned by the OP are just the tip of the iceberg.


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## Blk Jck 224 (Oct 16, 2009)

Times like these makes the healthcare industry appear to look better...LOL...Stop the Jack on Sabine this Sunday & I will give free prostate exams!


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## redexpress (Apr 5, 2010)

Zeitgeist said:


> All you have to do is look at a chart to fathom the significance of the decline in the price of oil. In 6 months, the price has dropped 55%. This is a big deal. Layoffs mentioned by the OP are just the tip of the iceberg.


Help me out here you wizard...if there is a Chinese slowdown I assume they will cut back on US bond and treasury purchasing, thus raising interest rates to move them. But...if the Europeans are in the dumps and run to the US for safety and yield, will that offset the Chinese? And....prop the US stock market back up?


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## Zeitgeist (Nov 10, 2011)

redexpress said:


> Help me out here you wizard...if there is a Chinese slowdown I assume they will cut back on US bond and treasury purchasing, thus raising interest rates to move them. But...if the Europeans are in the dumps and run to the US for safety and yield, will that offset the Chinese? And....prop the US stock market back up?


 On the first question, the exact opposite has happened. The 10-Year hit a 20 month low yesterday. Markets are sending mixed signals as the dollar is in rally mode, yet gold is also rallying. Normally. there is an inverse relationship. Strong dollar/weak commodities. This has been true with all commodities, oil being the obvious example.

Something will break soon, It will manifest itself with a dollar correction, commodity rally or decline in bond prices.

With that said, the 10 year rate at a 20 month low and the implosion of the price of oil is a major warning sign of what is to come.


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## TIMBOv2 (Mar 18, 2010)

I heard on Wednesday evening that Haliburton was going to cut operations by 75%.


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## jdusek (Apr 7, 2006)

I don't like when people get laid off and worry about their family's. I am a manager and had the unpleasant duty of doing these. But back in 2007-2009 before they started getting oil from Egle Ford Shale and other shale's, gas was close 3 dollars a gallon. What happened was they hired fast and hard to get the money while it was there to be gotten. That is the way oil operates and other any other industry operates when there is money to be made. As a whole it is better for America's economy with cheap gas. I know jobs are lost but the jobs that are lost are from over expansion and in reality were only there as temporary as oil has always been.

In the end oil will go back up. The OPEC cartel can not afford this for long "outside of Saudi Arabia".


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## Salty Sargent (Dec 9, 2014)

Has any of the big oil companies lost money? Or just losing the super inflated profits they are accustom to?


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## txjustin (Jun 3, 2009)

Texas Jeweler said:


> Halliburton, BP, Enterprise Products,,,it is coming on.





Payne346 said:


> Texas Jeweler, it's already started..... Enterprise has laid off around 100 folks so far. Not good for any of us.


Those 3 have already announced layoffs. Many more to follow.


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## 47741 (Jan 5, 2010)

Salty Sargent said:


> Has any of the big oil companies lost money? Or just losing the super inflated profits they are accustom to?


SO sick of hearing this moronic line.


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## mstrelectricman (Jul 10, 2009)

Who didn't see this coming? I said on a gas price thread here when it first started that it wouldn't be good. When asked if the price would go below 2/gallon I said, "I hope not." And of course the knuckleheads all applaud the economic downturn so they can fill the tank cheaper. I also said if it keeps up the average dummy won't be able to buy gas at any price. So....


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## Salty Sargent (Dec 9, 2014)

SaltyTX said:


> SO sick of hearing this moronic line.


You didn't answer the question though. it wasn't a statement, it was a question.


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## 47741 (Jan 5, 2010)

Salty Sargent said:


> You didn't answer the question though. it wasn't a statement, it was a question.


A) Why should they lose money? What company does that and survives? (Gov't aside)
B) They are releasing people so they don't lose money.
C) Super inflated profits is a ridiculous misnomer. Sidebar- why are profits bad?
D) Oil makes way more than fuel, but let's not get pesky facts involved.
E) The companies that aren't one-trick ponies will better weather the storm.


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## 98aggie77566 (Jul 7, 2009)

I'm not in the oil business....but this scares the bejeezus out of me.

I make dang good money in the IT industry...been with the same company almost 16 years....but I too wonder how long it can keep up, and options should my current gig fade out.

My wife and kids have never had to live like we are in a bind....so long as there are checks in the checkbook and the credit card works...Momma ain't broke. 

I gave them a challenge through the end of the month....just to see how they fare. We are going to be cleaning out the deep freeze, and eating those canned goods that wandered to the back of the cabinet. Eating out came to a halt....and entertainment is going to be basketball in the yard, target practice in the pasture, and movies we have on DVD.

Luckily I have some beer $$ stashed away they don't know about. :rotfl:

Looking over your back sure makes your neck hurt.

Hang in there fellas!


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## Salty Sargent (Dec 9, 2014)

SaltyTX said:


> A) Why should they lose money? What company does that and survives? (Gov't aside)
> B) They are releasing people so they don't lose money.
> C) Super inflated profits is a ridiculous misnomer. Sidebar- why are profits bad?
> D) Oil makes way more than fuel, but let's not get pesky facts involved.
> E) The companies that aren't one-trick ponies will better weather the storm.


A) I don't expect them to lose money but some people think they are laying off due to losses. 
B) exactly, the question is answered.
C) BS, its no secret they enjoy good, really good profits most of the time, and I never said it was a bad thing.
D) Really?
E) Not necessarily. Smaller companies don't have deep enough pockets to endure.

You got really defensive to a question. There was no need for the moronic remark. I guess it was the inflated profits part that got you ruffled.


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## Jolly Roger (May 21, 2004)

Salty Sargent said:


> A)
> 
> You got really defensive to a question. There was no need for the moronic remark. I guess it was the inflated profits part that got you ruffled.


it is moronic to think there is inflated profit in the oil business. When oil is high they make a lot of money, but the oil companies then have to ride the down turn. In these cases they may make a profit, they may not. It all depends on there business plan. For some of the major players like Valero a down turn in oil prices is good for them, for others like Exxon it is not. Most companies are diversified enough that they should still make profits, but it will not be enough profit to pay for exploration, improvements, expansions, etc..... this hurts the economy. Looking for oil, moving oil and storing oil cost massive amounts of money, and billions can be lost in a hours with one mistake. The risk are massive, with the ROI just not worth it when oil is cheap.

If you only look at the profit when oil prices are up, then you are naive and have no clue as to the nature of the business. Because if it was easy and a lot of money to be made all the time, everyone with money would be doing it. If you want to see inflated profits, look at Apple or some of the other major Techs that send there work overseas. Big Oil is in large part a Texas business, and Texans who think this huge drop in oil prices that fast is good thing are idiots.


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## grman (Jul 2, 2010)

Guys,
Ever since Spindletop - the Oil business has been this way

That's why they call it an Oil Boom or Oil Bust.

Nature of the business.


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## meterman (Jan 2, 2011)

How many company's could lose millions on dry holes or not producing as thought , this happens a lot out here. That kills some of that bloated profits that the news love to tell


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## TXXpress (May 23, 2004)

grman said:


> Guys,
> Ever since Spindletop - the Oil business has been this way
> 
> That's why they call it an Oil Boom or Oil Bust.
> ...


Nail on the head. The oil industry is what it is... Hang in there guys.


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## glennkoks (Jun 24, 2009)

The bottom line is oil companies have no control of the price at all. Oil is traded in U.S. dollars just about 24 hours a day in free markets all over the world. To a very large degree gasoline consumption is dictated by the individual. Don't drive an F250 extended cab 4x4 and whine about "super inflated profits".

If the oil companies had any control at all of the profits they would not be laying off hundreds of thousands of workers worldwide.


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## GulfCoast1102 (Dec 30, 2013)

redexpress said:


> Yep. I'm good I hope. Collecting a pension.
> But, the son in law got laid off yesterday.
> Electrical Engineer. Engineering firm. Oil & Gas.
> Y'all hang on to your shorts, it could get ugly.
> But it could pop right back in a few months. Maybe?


I'm an EE for an engineering firm as well. I look at our customer base, and the companies who's profits rely on the price of a barrel of oil being high make up only a small fraction of our business. We serve a pretty wide range of customers. When one scales back, another scales up.

I feel for your son. I've been laid off, and it sucks. The layoff came when I worked for a manufacturing plant some years back. I learned then to really do my homework and look for an industry that weather's economic storms well. Having a broad customer base is a big deal.

An engineering firm that put too many eggs in one basket (ie, oil field) should have known they were gambling.


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## Its Catchy (Apr 10, 2014)

The bottom line is oil companies have no control of the price at all. Oil is traded in U.S. dollars just about 24 hours a day in free markets all over the world. To a very large degree gasoline consumption is dictated by the individual. Don't drive an F250 extended cab 4x4 and whine about "super inflated profits".

If the oil companies had any control at all of the profits they would not be laying off hundreds of thousands of workers worldwide.


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## No Boat (Oct 12, 2010)

People see the large profit numbers and think big oil is evil, lol. What they aren't seeing is that it was made on a 3-6% profit margin. The company that makes that cell phone in your pocket operates on a 30% profit margin, but everyone seems fine with that....


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## Rubberback (Sep 9, 2008)

No Boat said:


> People see the large profit numbers and think big oil is evil, lol. What they aren't seeing is that it was made on a 3-6% profit margin. The company that makes that cell phone in your pocket operates on a 30% profit margin, but everyone seems fine with that....


I'm not!


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## grman (Jul 2, 2010)

The real issue is that it cost OPEC about $2 a barrel to produce oil.
It costs (average) about $55 a barrel to produce in the US.

So if OPEC and US producers play a game of "How Low Can You Go" chicken, there will only be one winner.

Everyone needs to go back and see the movie "There will be Blood". Based on a Upton Sinclair book written in the late 1880s. Not much has changed.


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## goatchze (Aug 1, 2006)

grman said:


> The real issue is that it cost OPEC about $2 a barrel to produce oil.
> It costs (average) about $55 a barrel to produce in the US.
> 
> So if OPEC and US producers play a game of "How Low Can You Go" chicken, there will only be one winner.
> ...


Not quite. While US producers look at IRR to make their decisions, OPEC nations look at their national budgets.

While it may not cost Saudi much to produce a barrel, if you factor in that their government runs entirely on oil proceeds, the price they need is much higher. Even the Saudis are feeling the pain and can't suffer forever.


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## TxAdam (Jun 28, 2007)

Salty Sargent said:


> A)
> 
> I guess it was the inflated profits part that got you ruffled.


I'm no expert on the oil biz but I'm pretty sure the margins themselves aren't that huge...they just posted giant numbers due to the volume.

Regardless, there is no such thing as "inflated" profit in my mind. Every business should strive to make as much as they possibly can and the market and competition will typically impose borders. To want any other control measure borders on communism.


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## Lagunaroy (Dec 30, 2013)

TxAdam said:


> I'm no expert on the oil biz but I'm pretty sure the margins themselves aren't that huge...they just posted giant numbers due to the volume.
> 
> Regardless, there is no such thing as "inflated" profit in my mind. Every business should strive to make as much as they possibly can and the market and competition will typically impose borders. To want any other control measure borders on communism.


Yes Sir, gotta agree.

Last quarter for Schlumberger, profits down 80%+, 7.5% layoff, so 9K. So the math says 111K still have a job. Worldwide company, sounds like pretty good job to keep the layoff number that low. CEO did say there could be more layoffs. It is business, the government could learn a few things, not likely though


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## omgidk (Nov 5, 2010)

sigh


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## txjustin (Jun 3, 2009)

goatchze said:


> Not quite. While US producers look at IRR to make their decisions, OPEC nations look at their national budgets.
> 
> While it may not cost Saudi much to produce a barrel, if you factor in that their government runs entirely on oil proceeds, the price they need is much higher. Even the Saudis are feeling the pain and can't suffer forever.


I was gonna point this out. Very important piece of info...


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## michaelbaranowski (May 24, 2004)

I was told last week that today was my last day at work. But I scrapped in work for next so they are letting me stay at least one more week. 

The go thing for me thanks to Dave Ramsey is that I am debt free, have a saving that should keep me going for at least 2 years and enough invested that should keep be afloat many more years. Plus I am single and have no one relying on me other than myself so I should do just fine. 

I have already started making plans to get some training that hopefully can get me some more funds in the world of SCUBA. I know it won't be a great living but with my savings I shouldn't be hurting.


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## GulfCoast1102 (Dec 30, 2013)

michaelbaranowski said:


> I was told last week that today was my last day at work. But I scrapped in work for next so they are letting me stay at least one more week.
> 
> The go thing for me thanks to Dave Ramsey is that I am debt free, have a saving that should keep me going for at least 2 years and enough invested that should keep be afloat many more years. Plus I am single and have no one relying on me other than myself so I should do just fine.
> 
> I have already started making plans to get some training that hopefully can get me some more funds in the world of SCUBA. I know it won't be a great living but with my savings I shouldn't be hurting.


Wow, and wow, and wow! My hat is off to you for making smart decisions. Do you mind sharing where/what you were laid off from?


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## Its Catchy (Apr 10, 2014)

No Boat said:


> People see the large profit numbers and think big oil is evil, lol. What they aren't seeing is that it was made on a 3-6% profit margin. The company that makes that cell phone in your pocket operates on a 30% profit margin, but everyone seems fine with that....


Oil refiners may work on 3-6% margin but oil producers profits can be much, much higher.


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## michaelbaranowski (May 24, 2004)

GulfCoast1102 said:


> Wow, and wow, and wow! My hat is off to you for making smart decisions. Do you mind sharing where/what you were laid off from?


I am a offshore Structural designer and have been working for the same engineering company for the last 16 1/2 years


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## iamatt (Aug 28, 2012)

To my buddies @ CGG SLB seismic processing hang in there. Going to be some boat floating around doing nothing. argh


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## 47741 (Jan 5, 2010)

Its Catchy said:


> Oil refiners may work on 3-6% margin but oil producers profits can be much, much higher.


SOOOOO WHAT!?

Even if quadrupled or more, it is still less than other companies/industries that nobody whines about on a percentage basis.


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## Its Catchy (Apr 10, 2014)

SaltyTX said:


> SOOOOO WHAT!?
> 
> Even if quadrupled or more, it is still less than other companies/industries that nobody whines about on a percentage basis.


I don't whine about profits any company makes and I certainly benefit from the higher profit margins oil companies make. Just wanted to clarify that oil companies don't work on a 3-6% margin.

If they did a 3-6% drop in price would make them non profitable and the price is already down 50% from its highs in June of last year.


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## redspeck (Jul 3, 2012)

I feel for all of you guys, hang in there.


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## Lagunaroy (Dec 30, 2013)

redexpress said:


> Just saw on Channel 13 that Schlumberger is laying off 9,000. I didn't catch if it was all at one time, and worldwide or what. Dang that is a bunch.


Yep, that is correct. Wanna fix it?

Back to $100 oil and the jobs come back. $150 oil will more jobs. I am all for it


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## txjustin (Jun 3, 2009)

michaelbaranowski said:


> I am a offshore Structural designer and have been working for the same engineering company for the last 16 1/2 years


Wow, 16.5 years and they give you walking papers. No loyalty anymore.


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## michaelbaranowski (May 24, 2004)

txjustin said:


> Wow, 16.5 years and they give you walking papers. No loyalty anymore.


Ha it is kind of strange. If you are communing off a job and there is no openings for you, you are gone. But are keeping contractors and newer hires on their current projects rather than switching them out.

I am talking to a lot of people and scrapping up every little bit of work I can find to keep me even a few more days. By doing this it might keep me around long enough for something to last a little longer


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## Trouthunter (Dec 18, 1998)

> I heard on Wednesday evening that Haliburton was going to cut operations by 75%.


No Halliburton laid off 1,000 people (they just bought Baker Hughes) and they're cutting spending.

Swift Energy is cutting spending by 75%.

TH


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## Trouthunter (Dec 18, 1998)

_Saudi billionaire businessman _*Prince Alwaleed bin Talal *_told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length._
*Q: Can you explain Saudi Arabia's strategy in terms of not cutting oil production?*
A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.
Having said that, the decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by 1 or 2 million barrels, that 1 or 2 million would have been produced by others. Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.
*Q: So this is about not losing market share?*
A: Yes. Although I am in full disagreement with the Saudi government, and the minister of oil, and the minister of finance on most aspects, on this particular incident I agree with the Saudi government of keeping production where it is.
*Q: What is moving prices? Is this a supply or a demand story? Some say there's too much oil in the world, and that is pressuring prices. But others say the global economy is slow, so it's weak demand.*
A: It is both. We have an oversupply. Iraq right now is producing very much. Even in Libya, where they have civil war, they are still producing. The U.S. is now producing shale oil and gas. So, there's oversupply in the market. But also demand is weak. We all know Japan is hovering around 0% growth. China said that they'll grow 6% or 7%. India's growth has been cut in half. Germany acknowledged just two months ago they will cut the growth potential from 2% to 1%. There's less demand, and there's oversupply. And both are recipes for a crash in oil. And that's what happened. It's a no-brainer.
*Q: Will prices continue to fall?*
A: If supply stays where it is, and demand remains weak, you better believe it is gonna go down more. But if some supply is taken off the market, and there's some growth in demand, prices may go up. But I'm sure we're never going to see $100 anymore. I said a year ago, the price of oil above $100 is artificial. It's not correct.
*Q: Wow. And you said you are in agreement with the Saudi government to not give up market share?*
A: This is the only point I'm agreeing with the Saudi Arabian government on oil. That's the only point, yes.
*Q: Should the Saudis cut production if they get an agreement with other oil producing countries to take oil off the market?*
A: Frankly speaking, to get all OPEC countries to approve and accept it, including Russia and Iran, and everybody else, is almost impossible You can never have an agreement whereby everybody cuts production. We can't trust all OPEC countries. And can't trust the non-OPEC countries. So it's not on the table because the others will cheat. The past has proven that. When Saudi Arabia cut production in the '80s and '90s, everybody cheated and took market share from us. Plus, remember there is an agenda here also. Although Saudi Arabia and OPEC countries did not engineer the reduction in the price of oil, there's a positive side effect, whereby at a certain price, we will see how many shale oil production companies run out of business. So although we are caught off guard by this, we are capitalizing on this matter whereby we'll live with $50 temporarily, to see how much new supply there will be, because this will render many new projects economically unfeasible.
*Q: What about the theory of the pressure on the Russians? There's a theory that the U.S. and the Saudis have agreed to keep prices low to pressure Russia because of what Putin has done in Ukraine.*
A: Two words: baloney and rubbish. I'm telling you, there's no way Saudis will do this. Because Saudi Arabia is hurting as much as Russia, period. Now, we don't show it because of our big reserves. But I'll tell you Saudi Arabia and Russia are in bed together here. And both are being hurt simultaneously. And there's no political conspiracy whatsoever against Russia. Because we are shooting ourselves in the foot if we do that.
*Q: You said the price of oil will dampen the shale revolution in America. How?*
A: Shale oil and shale gas, these are new products in the market. And we see big ranges. no one knows for sure what price is the breaking point for shale. Wells have a higher production cost. And very clearly these will run out of business, or at least not be economical. At $50, will it still be economically feasible? Unclear. This is a very much developing story.

*Q: Some people believe this crash in oil will create a lot of new mergers in the energy industry. Do you agree?*
A: No doubt about that. For sure there'll be a lot of consolidation in the market. Because many small and medium-sized companies can't afford this. Because they are very much dependent on the price of oil. Big companies like Exxon and Chevron are weathering the oil market crash because they are integrated vertically. But no doubt there'll be some mergers and acquisitions coming in one to two years.
*Q: Let me switch to the terrorism in Paris. Terrorists killed the cartoonist who joked about the prophet Mohammed. What is your opinion on this?*
A: What took place is a horrendous crime that no one can permit and accept. And unfortunately these small minority people are ruining the name of Islam. Now the whole world â€" Muslims, Christians, Jews, Hindus, Buddhists, atheists â€" have to come together and be united, and be sure to eliminate those minority of the Muslim community. Those that hijacked our religion and try to eliminate them not only militarily. That's happening right now against ISIS (the Islamic State) by the Americans and their allies. But also mentally, educationally and culturally, also. This is a disease we are getting at now. This really will put us in the Middle Ages unfortunately. It feels like the Middle Ages right now. But I think that the world is united. I just heard, for example, (U.S. Secretary of State) John Kerry giving a speech in French, which was very nice of him to do. It was a calming process for the French people. My foundation is in communication with the presidential palace in France and the French government, to see what we can do to ... (support) these families and these victims, innocent victims that were under attack. And then we have to show that Islam really is united with Christianity, and Judaism, and other religions in the world to limit this disease from from Earth.
*Q: Back to finance. Interest rates have gone down. The 10-year yield dropped below 2%. The Federal Reserve ended quantitative easing. But markets seem to be thinking the other way, that rates are going lower.*
A: You are talking about the last two weeks. And remember, the last two weeks were a Saudi panic situation, price of oil collapsing. The stock market collapsing. So don't use this as the barometer indicator, the last two weeks. This was a panic situation. The Fed is navigating rates higher slowly.
*Q: The stock market started the year off with heavy selling. What about some of your other investments, in media, banking and in technology? Such as Twitter or jd.com. Would you put new money to work in this market today?*
A: Clearly the year began with a sell-off because there are so many events that came together. People are taking profits because 2014 was very good. And also, they had this oil crisis, whereby everyone was caught off guard by this major crash in the price of oil. But I think the U.S. economy is doing really very well. Especially relative to the rest of the world. The big question right now is what happens to Germany. Because Germany really is the anchor of all Europe. Also, Japan, and India, and China. These are the three major countries that the world depends on. So, there are opportunities. But also many risks here. If Japan, China, India and Germany improve 1% or 2%, this would be a major improvement for growth globally.
*Q: Do you think the European Central Bank should come up with stimulus?*
A: There's a struggle right now between ECB President Mario Draghi, who is pushing for a stimulus, and Angela Merkel of Germany, who is worried about having inflation. We're seeing a clash over there between these two ideas. But I think that Draghi is preparing the market for a stimulus. Yes.

Got that from Fox News

TH


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## tec (Jul 20, 2007)

Anyone who thinks oil companies are so lucrative can start their own.


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## SpottedAg (Jun 16, 2010)

You all had to have seen this coming. We know our industry is cyclical and it's been booming to the point of being too good for a while. Where/what else can a hs education make you 300k and not be run by just you? 

With that said, I hope you all lived within your means and wish you the best. Shoot me a pm if you need to unload any guns or toys. I saved my pennies during the good times.


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## Friendswoodmatt (Feb 22, 2005)

This< I have said before and I will say again becasue it fits -- for those of you blaming the companies for laying off people -- "You MUST ALWAYS TAKE CARE OF THE GOOSE AS IT LAYS THE GOLDEN EGGS" 
They are taking care of the goose with what is going on now -- simple does it suck? Yes it does but its what happens and when i see people blaming CEOs it just ticks me off- please read on....
We are now on the other side of the equation. just sayin'
I posted this back in 2006 and I figure it might apply here as well-- and no I am not overjoyed at the current fuel/crude prices, but I didnt get them there 
My .02--
2006
I recently quit my job as a Fuels blender/ trader (Gas and Fuel oil) to open my own business,(probably not the best time to exit that business huh?) but still felt the need to chime in on this issue. I don't like the high gas prices either, but you need to be aware of a few things.
How many of you folks that are complaining about the high price of Gas have a 401K with mutual funds? The Speculative market for oil and all the derivatives (Gasoline, natural gas, Diesel) is a publicly traded deal. That means everyone from Shell to Southwest Airlines to your mutual fund speculates in these markets. If one of your mutual funds has a hedge fund included in its portfolio, then chances are you are profiting from the increased price of these commodities as well. The Gasoline and Oils markets are traded worldwide. These prices are all based upon Supply and demand.
Exxon and the other majors were starving a few years ago when oil was at 10/bbl. They were loosing millions per year to stay in business. Wall-street did not want them, and everyone invested in the Tech boom, then it went bust. These companies had real assets and not just intellectual property(refineries etc..) , that means they had to maintain and improve them (regulatory changes) them when their markets were not permitting them to operate at a profit, and their cash reserves were low. If you own a business then you know how tough it is to spend money when you are not making any because the market just does not bear the price you need to operate your assets at a profit. Look what happened to the Steel industry in this country. Prices went through the floor, business moved off-shore because we taught everyone else how to make it and they had newer stuff, cheaper labor and less regulation so our plants closed. So plants went out of business. Now Steel is higher than ever. Why? Now, China is buying it up and the supply is tight, so if you want to buy it -- you pay more. The cycle has come back around for these commodities and the folks that managed their business through the tough time are able to profit.
All this stuff is a cycle. Do I think oil will go back to 10/bbl?- No, but I think it will go down, or at least stabilize. Living in Texas surely some of the people on this board must have been through 1-2 oil booms and 1-2 busts.
Finished Gasoline is a blend of refinery products. They do not just make gasoline in the Cracker. You get the base but you must add things (octane & additives) that will allow your car to make the mileage figures required buy the EPA (I am aware that their are other reasons for blending) . ,This brings us to the new oxygenate-- Ethanol. This is now what is used to blend the octane into the "raw gasoline" and it is expensive. The availability of this is net short, so in order to blend enough octane, the companies either need to use higher priced components (reformate, akylates etc...) and/or pay up for Ethanol. Their is not enough Ethanol production capacity to feed the demand and the transportation cant get it down here fast enough because we don't have enough rail cars, tanks etc.. The higher priced components cost more to produce as well because it takes more energy and processing to make them.
I haven't heard anybody slamming the farmers for profiting off of corn to make this ****. Or slamming the steel industry or rail roads for not having the cars or infrastructure to get the Ethanol down here to ease the supply constraints.
During all of this, the Government decides to lower the sulfur allowed in fuels. Great idea for the environment, however it reduces the supplies that are available to blend. This makes the cost go up. The companies are trying to build more capacity to allow them to remove the sulfur from these streams, but you cannot just slap a new unit in place. Often it can take years to get the proper permits in place. Remember, a few years ago these guys were just trying to survive, so they were not going to spend $$$ to build any new capacity because they were just trying to keep afloat.
Sometimes refineries actually must tear down another unit in their plant to allow for the added loading on the environment. So they must tear down an asset (in some case these are idle, but not all) to build a new unit. The costs a ton of money and time folks.
The regulations make it almost impossible to build any new capacity (refineries) in this country. Heck, Houston is now a non-attainment area. That means our air is not clean enough and anything anybody wants to add is really difficult to get approved.
So, what do you do? Go build a refinery in another location right? Wrong, how many folks do you know that would say "hey I wish they would build a new refinery in my city so I could ease the supply constraints." No, most of the time what you hear is " I don't want of those dirty smelly things near where I live"
Lets say for the sake of discussion that someone did say "Great Idea, build it here." Now you must get all of the permits and environmental studies done to determine feasibility, and that you are not digging up any significant Archaeological area, and that the worms in the area are going to be OK, but you also must feed it. Is takes a lot of oil to feed a refinery. How are you going to transport it? Pipeline? (please see above permits and other issues) Barge/Ship? OK that means it is going to be on the water right? Wetlands will be disturbed-- more time and permitting issues. In short it is a difficult process.
I am sorry if this offends anyone, but the oil companies don't control the price of the oil. Speculators and large economies do. 
Some one pretty smart once said "In a gold rush,if you want to have a good business- don't stake a claim and pan for gold with all the other guys -- Sell pans and shovels." In my mind that's what these guys did. They starved through the hard times and made investments when they had no money and the market came back. 
Yes now they are printing money, but they don't control the prices, the world does. Prices will turn back down one day or they will and they wont be making as much then. Are you going to step up and help them through the hard times by paying more at the pump? Until we get the supply up the prices will stay high.


Here we are 9 years later (the cycle ran its course) and the supply has all of the sudden become greater than the demand, now a new group is lamenting the;

profits of the big boys their lifestyle has been radically altered, please be aware they had a good run and now the goose comes first. 
I am sorry if you are caught in this deal, but rest easy knowing:

This is the nature of markets, but relax because 1 of 2 things will happen soon maybe not as soon as you want but soon:
1. New markets will re-emerge since fuels costs are low and new opportunities will come with them to employee those displaced by the latest events, or 
2: A war will break out and oil will go back up -- (more likely in the short term)


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## Rubberback (Sep 9, 2008)

tec said:


> Anyone who thinks oil companies are so lucrative can start their own.


Maybe, not lucrative but can be very profitable.
JMO! I think we need another form of power for auto's. This will cause competition & make pricing fair.


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## poppadawg (Aug 10, 2007)

Could you elaborate on that friends woodmatt?


Sent from my iPhone using Tapatalk


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## Johnny9 (Sep 7, 2005)

Mr. Breeze said:


> IRS...layed off 12,000.


Wrong thry just moved them to handle all the Taxes of Obama Care


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## Reel Cajun (Aug 1, 2006)

dwycoff said:


> This is it - Saudia Arabia keeping their market share and driving the fracking companies out of business. Russia, Iran, and Venezuela will all be hit very hard because their economies depend on high oil prices. I don't now if tariffs is the right answer but something should be done to protect American business.


I think a tariff is exactly what we need. Hopefully our gubbamint is not in bed with the Saudis to try to punish Russia at our expense!


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## Lesto (Mar 4, 2005)

I spent almost 14 years with Schlumberger at the Houston headquarters before they let us go back in 1992.. New wife.. New home.. New boat.. First child... My world was caving in on me, but it worked out... I know your feelings and wish you the best.


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## BullyARed (Jun 19, 2010)

Ask big three build bigger bigger truck V-24 @ one mile per gal. Not a good new for Texas, Houston in particular.


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## txjustin (Jun 3, 2009)

Trouthunter said:


> No Halliburton laid off 1,000 people (they just bought Baker Hughes) and they're cutting spending.
> 
> Swift Energy is cutting spending by 75%.
> 
> TH


The 1000 you're referring to is in the EHO. They have announced layoffs in the states, but no specifics on exact number and they've already started.


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## RedXCross (Aug 7, 2005)

Matt ,
Very well written and documented!



Friendswoodmatt said:


> This< I have said before and I will say again becasue it fits -- for those of you blaming the companies for laying off people -- "You MUST ALWAYS TAKE CARE OF THE GOOSE AS IT LAYS THE GOLDEN EGGS"
> They are taking care of the goose with what is going on now -- simple does it suck? Yes it does but its what happens and when i see people blaming CEOs it just ticks me off- please read on....
> We are now on the other side of the equation. just sayin'
> I posted this back in 2006 and I figure it might apply here as well-- and no I am not overjoyed at the current fuel/crude prices, but I didnt get them there
> ...


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## Count Dragula (May 22, 2012)

grman said:


> Guys,
> Ever since Spindletop - the Oil business has been this way
> 
> That's why they call it an Oil Boom or Oil Bust.
> ...


Glad someone finally brought this up. What took 50 oil derricks on an average wildcat venture, now is typically replaced by one well. Many man hours and equipment yielded nothing near what we've accomplished in the past 25 years. With the advent of seismographic thumper trucks and mapping the deep waters, the formations are located and a single wellhead can produce by bending off the main bore at multiple levels. Then there's direction drilling in which Smith International pioneered now along with schlumberger then pathfinder utilize proprietary MWD and LWD technology to aid in steering the bit. So much goes into all this that most common folk cannot even begin to comprehend. Billions upon billions of barrels have been extracted safely and with minimal impact on the environment due to brilliant minds and both hard work from engineers to rig hands all the way down to our local machinist. I'm proud to say I live in the area and fortunate to be a part of it for over 32 years now.


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## Wizness (Jun 15, 2011)

Everyone that gets into oil and gas knows the risk


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## juan valdez (Jun 21, 2014)

Lagunaroy said:


> Yes Sir, gotta agree.
> 
> Last quarter for Schlumberger, profits down 80%+, 7.5% layoff, so 9K. So the math says 111K still have a job. Worldwide company, sounds like pretty good job to keep the layoff number that low. CEO did say there could be more layoffs. It is business, the government could learn a few things, not likely though


_Fourth-quarter profit dropped to $302 million, or 23 cents a share, from $1.66 billion, or $1.26 a share, a year earlier. Those results include restructuring costs. Revenue rose 6% to $12.64 billion.

Excluding restructuring and other charges, profit rose to $1.50 a share in the quarter from $1.35 a share a year earlier. Analysts surveyed by Thomson Reuters were expecting $1.45 a share._

This is in regards to Schlumberger and pulled from WSJ, revenue rose but profits dropped. 
What I don't understand is it sounds like most of their profit loss was from the layoffs? Why layoff then? Lookin to the future of what's to come???

I feel for you guys and I'm sure a lot of good families are gonna be hurt. I work in aviation and we are very cyclical as well, probably worse than oil really. We laid off about half my company over the last few months and it wasn't pretty.

Seems a lot of people just spend spend spend though. for them, I have no sympathy. Sure when I was working OT like a madman I could have bought a SCB, big new diesel and fished every chance I got. Now that OT is gone andI'm lucky to still have a job, it's a **** good thing I didn't do that.

Before I get the typical bash response from those affected/possibly affected, yes I have family members who work in Oil. Quite a few. and yes I love gas at 1.70ish but not at the expense of jobs. No matter what gas pump savings I see it won't equal my wife's check. But I sure don't want to see gas near 4 bucks again either.

For those whining about losing money in 401k. why would you not diversify? Why put all your eggs in one basket?


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## Rubberback (Sep 9, 2008)

juan valdez said:


> _Fourth-quarter profit dropped to $302 million, or 23 cents a share, from $1.66 billion, or $1.26 a share, a year earlier. Those results include restructuring costs. Revenue rose 6% to $12.64 billion.
> 
> Excluding restructuring and other charges, profit rose to $1.50 a share in the quarter from $1.35 a share a year earlier. Analysts surveyed by Thomson Reuters were expecting $1.45 a share._
> 
> ...


Sounds like we could make a thousand responses to this thread & don't mean squat. But I'm with you 4 buck gas is to much. After all we live in Texas the oil state. Everyone owns a caddy & has an oil well in their backyard. LOL!


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## bone (May 28, 2004)

I guess this is a lesson for the younger crowd to pick your profession wisely. I work at a chemical plant and they are giving me all the OT I want. I'm a company employee, and we haven't laid anybody off in since I worked there, 23yrs. now contract hands, they come and go. I work for the man inside a fence. some like a different work environment, but I don't have to worry about my job. give me some $2.00/gal gas all day long, heck yea.


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## juan valdez (Jun 21, 2014)

Ha I wish!
Would love a piece of the pie! I wonder what'll happen when we get off fossil fuels? I know it won't be for a very long time, but im curious what'll finally make it


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## juan valdez (Jun 21, 2014)

bone said:


> I guess this is a lesson for the younger crowd to pick your profession wisely. I work at a chemical plant and they are giving me all the OT I want. I'm a company employee, and we haven't laid anybody off in since I worked there, 23yrs. now contract hands, they come and go. I work for the man inside a fence. some like a different work environment, but I don't have to worry about my job. give me some $2.00/gal gas all day long, heck yea.


I hear ya on that. I started as contractor but moved direct first opportunity I had. We've hired at minimum 300 people, close to 400, in the two years ive been there. Contractors cime and go weekly


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## RRbohemian (Dec 20, 2009)

It's not only the oil field industry that is laying off, high tech companies are laying off too. I went to work for my current employer in 2006 and since that time I have witness ~13 layoffs. In fact we have 2 techs that will be let go at the end of March and after they are gone no more techs in my group. We are down to 3 engineers and the kicker is that I travel to Shanghai, China on the 31st to train engineers who were hired to make up for the lost techs in my office. I believe they are junior engineers starting out ~10k a year. Our techs are making ~63k a year. It's a crappy industry kind of like the oilfield which I worked in during the boom of the late 70s and the bust of the 80s. I just pray to make it another 9 years so I can get out of the rat race.


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## Count Dragula (May 22, 2012)

bone said:


> I guess this is a lesson for the younger crowd to pick your profession wisely. I work at a chemical plant and they are giving me all the OT I want. I'm a company employee, and we haven't laid anybody off in since I worked there, 23yrs. now contract hands, they come and go. I work for the man inside a fence. some like a different work environment, but I don't have to worry about my job. give me some $2.00/gal gas all day long, heck yea.


Any profession is a good one if its what you like to do. Its more like spend and save wisely within your means in my opinion. I'm sure you still drive to work like most of us in some sort of combustion powered vehicle. What powers that factory? The last thing we need is an occupation that dries up because of fear, or worry. That's unTexan to me.


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## Count Dragula (May 22, 2012)

juan valdez said:


> Ha I wish!
> Would love a piece of the pie! I wonder what'll happen when we get off fossil fuels? I know it won't be for a very long time, but im curious what'll finally make it


There's a slice with your name on it if you have the aptitude and willing to stay the course. What's a fossil fuel anyway? Methane is a natural abiotic occurrence.


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## Johnboat (Jun 7, 2004)

*explain*



Count Dragula; What's a fossil fuel anyway? Methane is a natural abiotic occurrence.[/QUOTE said:


> I did a quick check and abiotic theories are generally discredited by most geologists. Are you one of those biblical young earth guys? Or is there new scientific evidence? I learned if it has a carbon atom, it came from ancient life.


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## RiverRat1962 (Mar 23, 2009)

Salty Sargent said:


> You got really defensive to a question. There was no need for the moronic remark. I guess it was the inflated profits part that got you ruffled.


The government makes more $ per gallon in taxes than the 'big evil oil companies'.. Regardless of the price.. Without creating any jobs, And not just at the pump, they rob everyone involved from the lease owner to the drillers and their employees all the way down the line to the store clerk..
Just maybe someone will take you serious when you start foaming at the mouth about that.. :headknock


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## boltmaster (Aug 16, 2011)

The moral with any career is " make as much as you can while you can.....save as much as you can when you can......move on and forward when you need to"

Nothing lasts forever and as long as you don't slam the door and burn the bridge behind you there is no reason one can't cycle back into a field of work somewhere down the road


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## Gemini8 (Jun 29, 2013)

boltmaster said:


> The moral with any career is " make as much as you can while you can.....save as much as you can when you can......move on and forward when you need to"
> 
> Nothing lasts forever and as long as you don't slam the door and burn the bridge behind you there is no reason one can't cycle back into a field of work somewhere down the road


You are exactly correct; everyone should be prepared for the what ifs. While I hate to see anyone lose a job, no job is guaranteed and people shouldn't fall into that false sense of security.


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## Johnboat (Jun 7, 2004)

*When I was young a Shell Oil VP told me this*

"Loyalty to a corporation is loyalty misplaced."


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## redexpress (Apr 5, 2010)

Johnboat said:


> "Loyalty to a corporation is loyalty misplaced."


 Sounds like Lynn Elsanhans when she was a foot soldier in the Queens army at Deer Park.


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## juan valdez (Jun 21, 2014)

Count Dragula said:


> There's a slice with your name on it if you have the aptitude and willing to stay the course. What's a fossil fuel anyway? Methane is a natural abiotic occurrence.


Should've quoted rubber back. Was referencing having oilon my land


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## ChuChu (Jan 23, 2010)

http://finance.yahoo.com/news/schlumberger-pays-1-7b-stake-123305013.html


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## Its Catchy (Apr 10, 2014)

Johnboat said:


> "Loyalty to a corporation is loyalty misplaced."


I quit hanging around the break room for morning coffee because everyone was badmouthing my current corporation.

Many years ago my company offered me terms of employment which I accepted. It has allowed be to buy a home, feed my family and provide my kids with an education and I for one am thankful.

If a better opportunity arises I would think long and hard before I left and If I did it would be only after providing more than enough notice so that they could hire and train my replacement.


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## Tortuga (May 21, 2004)

Its Catchy said:


> I quit hanging around the break room for morning coffee because everyone was badmouthing my current corporation.
> 
> Many years ago my company offered me terms of employment which I accepted. It has allowed be to buy a home, feed my family and provide my kids with an education and I for one am thankful.
> 
> If a better opportunity arises I would think long and hard before I left and If I did it would be only after providing more than enough notice so that they could hire and train my replacement.


That used to be a 'mantra' in the good ol' USA, Catchy... Nowadays...not so much....sad3sm


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## scwine (Sep 7, 2006)

Baker Hughes to layoff 7,000 http://www.usatoday.com/story/money...st-hit-by-oil-slump-to-lay-off-7000/22042433/


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## Tortuga (May 21, 2004)

scwine said:


> Baker Hughes to layoff 7,000 http://www.usatoday.com/story/money...st-hit-by-oil-slump-to-lay-off-7000/22042433/


Baker is merging with Halliburton.. Gonna be a lot of extra 'bodies' on hand when it is complete....


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## Hullahopper (May 24, 2004)

Texas Drilling Rig Count Down 


SAN ANTONIO (San Antonio Express-News) â€“ The number of drilling rigs working in Texas dropped by 44 last week to 766, according to the Baker Hughes Rig Count released Friday.

Over the last two weeks, the state has lost 74 drilling rigs. Most of that loss has come from the Permian Basin and the Eagle Ford Shale.

In the last two weeks, the Permian Basin has lost 37 rigs, bringing its rig count to 399. The Eagle Ford, meanwhile, lost 15 rigs, lowering its total to 185.

The Granite Wash in the Panhandle is down seven rigs, leaving 23 rigs working in that field last week.

West Texas Intermediate closed just above $50 per barrel on Jan. 5 and has been below $50 since.


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## pknight6 (Nov 8, 2014)

That sucks, but how much do you want to bet that it is Bush's fault?


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## pknight6 (Nov 8, 2014)

SaltyTX said:


> A) Why should they lose money? What company does that and survives? (Gov't aside)
> B) They are releasing people so they don't lose money.
> C) Super inflated profits is a ridiculous misnomer. Sidebar- why are profits bad?
> D) Oil makes way more than fuel, but let's not get pesky facts involved.
> E) The companies that aren't one-trick ponies will better weather the storm.


F) The Feds make a lot more off of a gallon of gas than the oil companies do.


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## pknight6 (Nov 8, 2014)

Lagunaroy said:


> Yep, that is correct. Wanna fix it?
> 
> Back to $100 oil and the jobs come back. $150 oil will more jobs. I am all for it


I will gladly pay $3+ for gas if it means more of my brothers and sisters are working.


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## jmreeves624 (May 27, 2014)

9000 and 7000 layoffs. To put that in perspective is about 1% of their workforce. Most of those are unskilled short term employees. Allot of the tasks these type of employees performed well be absorbed by the more highly skilled workers. Those that are skilled and valuable to the company will not likely lose their job. I work for a major drilling company and because of the price of oil I am having to take on more manual labor tasks. I won't make as much money for the next few months or so until it stableizes but I will still be able to pay my bills and live. Bottom line is that in any industry when profits are in danger in falling a company is going to trim the fast and thin the heard. That is just business. Those that are expendable are at danger. Hard work and making you self valuable will keep you employed and get you thru hard times


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## michaelbaranowski (May 24, 2004)

Well at noon today I got my offical notice that after 16 1/2 years of working at Mustang Engineering this is my last week. 

I feel that I will be OK finanacially for a good while. But we will see how I do mentally w/o getting up at 400 am and driving to Katy to work 10-12 days.

Several have asked me to send them my resume. I have a few more things to up-date but I will be getting it to you early next week.


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## POC Fishin' Gal (Nov 20, 2009)

I am so very sorry.


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## grman (Jul 2, 2010)

I am not an oil and gas man. I spent 32 years in IT.
From what I am hearing on the street is that the oil slow down is having a big impact on IT services companies - especially contract labor, contract system admins and programmers.


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## sotexhookset (Jun 4, 2011)

michaelbaranowski said:


> Well at noon today I got my offical notice that after 16 1/2 years of working at Mustang Engineering this is my last week.
> 
> I feel that I will be OK finanacially for a good while. But we will see how I do mentally w/o getting up at 400 am and driving to Katy to work 10-12 days.
> 
> Several have asked me to send them my resume. I have a few more things to up-date but I will be getting it to you early next week.


That sucks man. Sorry to hear it. I have a good buddy that worked at mustang for a good few years that left a couple three ago to do his own thing. Traveled the world with that company.


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## vette74 (Oct 11, 2009)

michaelbaranowski said:


> Well at noon today I got my offical notice that after 16 1/2 years of working at Mustang Engineering this is my last week.
> 
> I feel that I will be OK finanacially for a good while. But we will see how I do mentally w/o getting up at 400 am and driving to Katy to work 10-12 days.
> 
> Several have asked me to send them my resume. I have a few more things to up-date but I will be getting it to you early next week.


If I remember correctly you did CAD work. If so I might need some contract help if a few jobs come in.


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## iamatt (Aug 28, 2012)

grman said:


> I am not an oil and gas man. I spent 32 years in IT.
> From what I am hearing on the street is that the oil slow down is having a big impact on IT services companies - especially contract labor, contract system admins and programmers.


Several layoffs at SLB in their HPC group today. It's going to get worse.


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## Superman70 (Aug 13, 2014)

Texas rode high while a lot of the country suffered. Looks like we will be tightening our belts too before long. Lots of folks got rich and lots of little shops got started. I hope it turns around quicker than it did last time.


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## shanker (Jan 15, 2006)

SLB people showed up to the MI Swaco offices in South Texas with a list of names....all those people got cut...they're cutting so deep that the mud engineer's left working will be on a 14on/7off schedule and they won't be able to use their vacation or get sick or hurt...

it's amazing that of all the work we've lost, half of it is from rigs being stacked, and the other half is because of lack of competitiveness to Baker/Baroid/Newpark/etc....


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## Zork (Jan 11, 2006)

Sorry to hear that MB, i also work for Mustang Engineering on a client site out of the Hobby office. I heard they were making some cuts on the West Side. I'm fortunate that we have an approved budget with worked planned through the end of 2017 where i'm at.


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## caz (Oct 23, 2006)

I work in home automation, installing and programming smart homes. A lot of our clients are in the oil and gas industry. Business has been crazy the last two years, but slowing down ALOT the past few months. I do a lot of driving for work so the cheap gas helps, but not when I have no work to drive to.


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## BadBob (Dec 16, 2010)

neighbor got let go after 18 years, said he had an interview monday


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## tec (Jul 20, 2007)

Just another cycle in the oil patch. Up a few years then down a few years. Has always happened that way.


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