Saudi Arabia to lower oil prices, the houston boom is over

Repsol for you brehs that are sweating bullets. My wife actually wants to be let go. Isn't it 2 years unemployment, sweet deal. I'm going to miss the rockets all inclusive suite. Those Spaniards love basketball.

 

I got some people over there I work with. Hopefully their emails will automatically redirect if they get laid off and just walk out.

 

They just reported their profits dropped 58% this quarter. Desperate times.

 

I believe Mr. Tilerson said a few years ago that they were losing their shirt over natural gas prices - related to WTX or whatever company it was they acquired.

 

42% of their profits are still a large chunk of change. Should have put some aside from the BILLIONS they've been raking in the past decade.

 

IF they're laying off it probably isn't reactionary. I'd imagine it's due to what they're forecasting going forward. Though that still doesn't make it any better.

 

You could say that for every single o&g company.

 

Playing devils advocate, a publicly traded company can only keep so much in cash reserves to cover what I can assure you is also billions in salary that they pay each year. These companies have to reinvest profits or pay dividends to please shareholders.

 

Fugro is still keeping its head above oil. My wife is still busy doing proposals almost every day. obviously they had to cut back from the mom and pops, and stay with the big fish in the industry. all I can say right now for everyone is come on 2018!

 

http://www.bloomberg.com/news/artic...ng-about-50-by-fourth-quarter-as-supply-eases


Simple supply and demand. Things will stabilize at some point.

Also, I finally checked my 401k today. Dang it.

 

Yeah, but if they are still making profits it means that they are covering the billions in salaries. The shareholders are the ones losing out

 

Yeah it hurts. My 401K and other IRA and investments have taken a big hit. I'd guess you just role with it and keep maximizing the 401k?

 

You need to reinvest into the company to continue R&D. Innovation isn't cheap and even though they're drilling for fossil fuels there's a lot of innovative technology in oil and gas. Tech companies aren't immune to this. Icahn pushed Apple into borrowing debt to cover for the dividends that they are paying out even though they have billions in cash. Problem is it's mostly stuck overseas. Now iPhone sales are on the inevitable downside of the demand curve. They'll need something new to prop them up unless they transform into a services company.

 

Yes, it will and always has come back up. The historical return on the stock market is 10%. Once you get closer to 60 or so, that's when you pay attention and cash out of some of the volatile growth stocks and move to more mature, stable stocks or bonds.

(This goes for 401k and retirement counts anyway, other investments depend on how long/short term you plan to stay in them)

 

It's just that supply side issues usually take longer to work out. This has happened before, and the recovery is measured in years...not months. I'll be very surprised (pleasantly) if oil is at $50 in the 4th quarter.

If you look at 1986 as an example, it was $14.44 that year...dropping almost 50% from the year before. 10 years later, in 1996, it was still only around $20. The price adjusted for inflation was actually lower in 1996 than it was in 1986. Then it bottomed out again in 1998 at around $11, before tracking up as it did through 2008.

I think people redefined "normal" for pricing of oil...most of my life, the average price has been far lower than what people came to accept as "normal" thanks to the ramblings of Goldman and Peak Oil folks. We've just gotten so good at getting it out of places we never thought we would....and technologies for efficiency have improved so much. There's like 10,000 wells out there that have stopped producing, that are just waiting to be fracked...it's like a 90 day turnaround to start getting production out once they start that process...the market is too aware of how quickly we can start tapping into all of it that's still out there.

 

http://www.dailyjobcuts.com/

 

There a huge difference between 1986 and today in that demand developing countries like India, China, Brazil etc. is growing which was not the case back then. All the the producer need to do is cut production a few million barrels a day and the price would sky rocket, and they would make a lot more money.

Its all game theory. The prisoners dilemma.

 

Not sure if related, but looking for some advice here from some O & G employees.

Recently got offered a job from a large O&G company and it's going to be a pretty big increase in pay for me. This company has obviously partaken in layoffs, but the people in that department have all told me their sector is safe, and the interviewer pretty much sang the same tune.

I know this industry is super volatile, just wondering if it's worth jumping over to that industry for a considerable amount of money, or continue being unhappy as **** but know I am not going anywhere.

 

I feel like you already know the answer to your question.

Actually write down pros/cons for each job and start from that. Just from your description, I'd jump to the O&G job.

 

It would help if you would say the Company and division they are in so we can really tell if you if their sector is safe. But either way it seems like a no brainer to take the job. Also, what kind of job is it (engineering, supply chain, IT, finance, accounting)?