And there was much rejoicing in the land.... Gas Prices

[Ruffdaddy]

Holy fuck!!!!

[Strychnine]

They started their layoffs this week I think... If I had to guess i would say a lot of that -90 is H&P.

[GrayStangGT]

It was probably just moving, but caught one going down the other day.



HPs yard

[Strychnine]

The one week drop was the largest reduction since 1987.
The count going for oil is 1223. Lowest in 3 years.
58 of those cuts this week were in TX.

US offshore rig count dropped 5, down to 49 active.


From H&P CEO yesterday on their quarterly call:

"We are making significant reductions to workforce as rigs go idle. It is possible that we will have >2,000 positions eliminated."
"I have no idea when we will reach the bottom. E&P operators are releasing drilling rigs indiscriminately at this point. 22 of our rigs under long term contract have been terminated [up from 4 just three weeks ago]. Permian and Eagle Ford are holding up better than Bakken, Niobrara and some other plays. Given the current trend, we could have less than 200 US land rigs active by the end of the quarter [down from about 243 today] and spot pricing for land rigs is down 10% and softening as we speak."

Everyone knew it was coming when they said they would be stacking 60 rigs very quickly.

[86silverbullett]

[Strychnine]

Is that H&P?

[Captain Crawfish]

OPEC putting a hurting on some people. Moving avg up trending slow stochastics also look good. +7 percent today. Was 45 bottom?

[Ruffdaddy]

I'll say it again...it took way too damn long to lay down rigs. lots of reasons for it...but it sucks regardless.

[Captain Crawfish]

Once demand outweighs production prices will rise again.

[dsrtuckteezy]

Once demand outweighs production prices will rise again.

no waiii!?

[TexasDevilDog]

Refinery strike.

The United Steelworkers Union called for its refinery workers to stage their largest walkout in more 30 years Sunday, saying its negotiations with Shell Oil Co. broke down less than two weeks after they began.

The union asked about 3,800 workers at nine refineries mostly in Texas and California to strike shortly after their previous contract expired after midnight.

http://finance.yahoo.com/news/union-asks-refinery-workers-strike-talks-break-down-191500152--finance.html

[93LXHORSE]

Meanwhile we are out in Gran Canaria getting the Transocean Development Driller 1 to be ready to deploy to Angola next month for sea trials. They're gonna move ahead with drilling and are pressing all of us to get the thing ready.

[Strychnine]

WTI briefly hit $50.56 this morning.

[Strychnine]

Lufkin (now part of GE) is about to lose 330 people and close a facility in TX

GE informed the Texas Workforce Commission last week that it will furlough 330 employees and close an East Texas facility acquired in its 2013 acquisition of oil-field pump manufacturer Lufkin industries. In a Warning Notice sent to the Texas Workforce Commission late last week, GE stated it is reducing 45% of the manufacturing, engineering, sales and other jobs at its Buck Creek plant beginning in late March. The lay offs are expected to be complete by April 30.

The Texas Worker Adjustment and Retraining Notification Act (WARN) requires companies to inform the state agency of impending headcount reductions.
This headcount reduction is particularly impactful, given that the Buck Creek facility manufactures artificial lifts- a technology that is correlated with the number of new unconventional oil wells coming online in basins like the Permian, Bakken, and Eagle Ford.

also

The TWC Warn notice also shows that rig contractor Lariat Services and E&P Sandridge Energy will cut 26 and 25 jobs, respectively, in the Permian Basin. Additionally, Trican Well Service said that it will layoff 125 workers in East Texas.

[Craizie]

I have a buddy in the low level part of the oil industry. He thought it was a good Idea to buy a house last Friday....