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

Wow, this thread's gone through some interesting transitions.

 

Preach. No one wants people to lose their jobs. If I lost my job (Plastics) because people decided to start recycling considerably are people here gone feel sorry for the industry and stop recycling?

I never rooted for folks to lose their jobs. To me mass layoffs are a reflection of bad management, overcompensation problems and poor planning. I know at least 5 people with O&G jobs (the I have a black friend defense) that will probably lose their cushy jobs. I've been laughed at for staying with my company for 30% less pay with 50% more skill than them. What can I say? I like consistency.

 

There are other factors to consider such as what I mentioned. What is stopping the non-CPA account from quitting the office job and grinding it in the field?

 

Easier said than done, but Mikol there isn't anything you can do about it but continue to work hard. There really isn't any point in stressing about. You're a bright guy. Things will work out.

 

My guess is you weren't hired because your personality is so noxious you couldn't cover it up, even in an interview environment.

 

Companies were planning to spend billions of dollars to develop their acreage in the United States. Exploration wells are also being put on hold. Companies were growing to support those efforts. From IT support, supply chain, geos, engineers, etc. Of course, when projects come to a grinding halt, layoffs are gonna come.

 

It has been stated a few times over that this is going to slow down production going into the future. There will be a shortage at some point and oil prices are gonna sky rocket. Ex Shell CEO said 2020ish, if I'm not mistaken. $5-$6 a gallon. It's coming. Be prepared for it.

 

Agree. I guarantee you the tens of thousands (and soon possibly hundreds of thousands) of people losing their jobs aren't all petro engineers making six figures. You have receptionists and drivers etc. So they made a little more than similar roles at other companies. Is that their fault? You wouldn't accept the higher salary offered you? What makes you worth more than someone working in China's aeronautics program? Just luck and circumstance, same as the guys at these O&G companies.
You should be ashamed.

 

Shell CEOs guess of prices in 5 years from now is as good as mine. He is pulling it out of his ass. Oil tends to cyclical just like most commodities.

 

Sure, but the dynamics of a prolonged slowdown in production will probably result in a reverse situation from what the market just experienced, so the eventual supply (falling) vs. demand (steadily creeping up) will likely warrant a price correction back upwards.

As you said, it's cyclical, and also agree, basically impossible to accurately guess what prices will be.

 

If they sky rocket it won't be for long. There are so many projects out there to be drilled. Plus Iraqi production is expected to be nearly 8 million bpd by the 2020ish range.

 

I feel for ya mikol, there are a lot of folks like you in the O&G that are going to be hurting because of this...and that's what's maddening...people think that because there are a lot of folks now that are going to be able to go to the movies a couple of more times a month, or get extra cream in their daily starbucks it's worth 10's of thousands of people's livelihoods (and effect many more) but will be better overall for the country. I guess... The only people truly benefiting the most are the ones that drive the most, and I doubt most really poor folks are putting a lot of miles on their cars. I'm sure those SUV owners are loving this though...good for them.

 

Good point

 

the negatives will far outweigh the positives.. repercussions from people being unable to meet financial obligations they made when O&G money was flowing freely will ripple and tear through the economy..

 

Algeria is going to join Iraq. they are going to follow through on their commitment.

 

This is one reason why Houston does not attract the headquarters of non O&G companies and they all go to DFW (mostly) or Austin when relocating to Texas. Those companies can't compete with the salaries that the O&G companies can give talent. This is fine and all jn a boom, but look at it now. For example, Houston had Continental Airlines. Then, loses both the corporate AND operational HQ to Chicago (and the mayor and city council waited waaaay too long to come up with a package for Continental). That loss is looking much worse now with the bust. Then you look at DFW attracting companies like the Toyota NA headquarters.

 

These are the same arguments my friend's father (been in O&G for over 20 years) was making to us when we were discussing it. I don't get this self centered mentality people in the industry have.

 

That's an interesting theory.

 

Everyone benefits with lower fuel costs. You're advocating we should pay higher prices to needlessly employee people. That is asinine. Nobody is waving flags of victory for those who lose their jobs.
O&G is notorious for booms and busts. If someone gets in the industry with a great salary, they would be a fool to expect that to last forever.

Lower fuel prices does not translate into just a few dollars saved at the pump. Fuel is the life line of nearly every industry out there. There is a good reason why food has almost double in prices over the last few years.

 

I sincerely doubt it. We have new plays coming on line this year that are significant...I think it's going to take a while for demand to get up to a point where it creates anything remotely close to a shortage. I just don't see it, especially with improving efficiency in technology.