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

layoffs! layoffs everywhere!

 

So...is this part of the reason my morning commute on I-10 through downtown West to East is no longer full of heavy traffic and even on my way home it's smooth sailing from the east to west side? It's always light during the holidays, but since New Years the traffic has been down dramatically.

 

I had to use it after Jontro last week.

 

http://www.forbes.com/sites/christo...offs-hit-the-oilpatch-with-worst-yet-to-come/

 

******* sticky keys.

 

I don't see how diversified Houston's economy is. It seems like most of my friends have a job related to Oil, Petrochemicals, or are doctors.

 

I feel kinda lucky. I sold my home, quit my O&G job, and moved to DC right before all this crap went south. Stay strong yall.

 

Anyone work at Exxon Mobil? 385 acres of office space in North Houston is suppose to house 44,000 jobs when its complete. I wonder if construction has slowed due to the drop in oil.

 

oil definitely is the largest sector, but there is real estate, medicine, finance etc. just off the top of my head

 

Lawyers too

 

Sat through a S&P presentation this morning regarding state debt and bond ratings.

Texas derives about 4.5% of it's revenues from oil and gas

Alaska on the other hand 87%

 

Not sure where you got 44k jobs... It's being built to accommodate 10-15k jobs.

 

Live by the three, die by the three?

 

now that you have said that 44 thousand jobs at one site sounds like a lot

 

I just want to say to everyone who is going through this right now, good luck and keep going. First time seeing this side of the cycle for me. Its been all fun and games since 2011, but this is rough.

Fingers crossed that we can all ride this out.

 

http://www.chron.com/discoverhousto...-a-Houston-growth-leader-with-new-5754359.php

Those jobs are probably not onsite, but it does say the site will bring 44k permanent jobs during ongoing operations.

"The campus will provide significant economic benefits for Texas and the local economy even after construction is complete. An independent economic impact study estimates the campus will create 36,000-person-years of employment during construction and 44,000 permanent jobs during ongoing operations."

 

Friggin' thing looks like the Death Star from a far...

 

1st time for me too. my family all been laidoff 30 years ago. 80s was really bad to this town.

http://www.theguardian.com/business/2015/jan/16/schlumberger-job-cuts-oil-prices-plunge

The oil services group Schlumberger is to cut 9,000 jobs, or about 7% of its workforce, as it focuses on controlling costs amid plummeting oil prices.

The company said it took charges amounting to $1.77bn in the fourth quarter, including impairment charges related to its seismic business, Venezuela currency devaluation and job cuts.

Schlumberger had said last month that it would take a $1bn charge related to jobs cuts and the writedown of some seismic vessels.

Philip Van Deusen, an analyst with Tigress Financial Partners, said: “They did say they would be cutting jobs, but the magnitude of them is definitely a shocker.” A number of global oil companies such as BP and ConocoPhillips have cut jobs after a fall of nearly 60% in oil prices over the past six months. Brent crude closed at $47.67 on Thursday.

Robin Shoemaker, analyst with KeyBanc Capital Markets, said: “If oil prices stay at this level, none of these companies would just be able to adjust with one round of workforce reductions.” Schlumberger’s customers – oil producers – have cut capital budgets for 2015 and reduced the number of rigs.

The Houston-based company said capital expenditure, excluding multi-client and project management investments, is expected to be $3bn for 2015, compared with $4bn the previous year. “In this uncertain environment, we continue to focus on what we can control,” chief executive Paal Kibsgaard said.

Schlumberger, which provides drilling technology and equipment, reported a fourth-quarter profit that beat Wall Street estimates for the 10th straight quarter. Revenue rose 6% to $12.64bn, mainly helped by an 18.5% jump in revenue from North America.

Net income attributable to the company fell to $302m, or 23 cents a share, in the fourth quarter ended 31 December, from $1.66bn, or $1.26 a share, a year earlier.

On an adjusted basis, the company earned $1.50 a share, beating the average analyst estimate of $1.45, according Thomson Reuters I/B/E/S.

Shares in the company closed at $76.63 on the New York Stock Exchange on Thursday.

 

Schlumberger laying off 9000 people, globally. Antero laying off 1000 in its land department. Tubular steel manufacturers laying off workers. I still think the worst will come around March.

Swift Energy is cutting its budget by 75%. Bankruptcy in the future?

 

Swift is hemorhaging for certain. Agree that we won't see worst for a couple months... A lot has already happened just hasn't been announced. It's gonna be rough folks but alas this is the very nature of the o&g industry.