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

[GrayStangGT]

Apache had another round of layoffs out here this week

[Strychnine]

Apache had another round of layoffs out here this week

Any idea how many? I would definitely expect round two...

Schlumberger announced yesteday, then GE said something similar:

GE Oil & Gas to Cut Jobs to Reduce Costs
Friday, 17 April 2015

GE Oil & Gas is reportedly set to reduce costs by reducing staff. The company has begun the restructuring process which includes job cuts. A GE Oil & Gas spokesperson has commented: “GE Oil & Gas has started restructuring projects to reduce the cost structure of the business. This includes proposals to reduce employment, which is a decision we don’t take lightly but one we must undertake for the long-term health of the business.”
The oil company operates worldwide and employs more than 45,000 people. GE Oil & Gas have been contacted seeking confirmation of these reports as well further information on location and number of employees that might be affected.

“We believe that a recovery in U.S. land drilling activity will be pushed out in time, as the inventory of uncompleted wells builds and as the re-fracturing market expands. We also anticipate that a recovery in activity will fall well short of reaching previous levels, hence extending the period of pricing weakness.”
- Paal Kibsgaard, CEO Schlumberger



re: Schlumberger
“We believe the 37 percent cut in capex and 15 percent headcount cut is clearly a strong indicator of the expectation of still highly challenging market in 2016,”
- Angie Sedita, UBS AG analyst in a note to clients titled “Batten down the hatches.”



“There will be another wave after this. You can’t cut all the people you need to cut the first time.”
- James Wicklund, Credit Suisse Group AG in Dallas

[Ruffdaddy]

19

[Strychnine]

Fun fact of the day, customer name removed:


As it was told me yesterday, while ago ______ Drilling ordered 18 new rigs from NOV, to be delivered throughout 2015.
They took delivery of two. The remaining rigs are complete, or at some advanced stage of build, and are sitting at NOV's yard in Galena Park. That's 16 rigs that are "sold" but the contract somehow had a loophole allowed them to "indefinitely delay" receiving them.

Ouch.

[Strychnine]

US rig count -34 this week.

Total US rig count at 954




Also, H&P's Odessa yard now has 48 rigs in it.

[Strychnine]

re: Schlumberger

Major re-organization for the wireline and drilling product groups is in process. They've cut full product line divisions, rolling all the survivors into other lines. I don't know much about the field situation.

They see high-tier equipment manufacturing rebounding in 2017.

Also Schlumberger is very middle-manager heavy and they seem to be recognizing how much that impacts their total headcount. However, the VAST majority of the cuts have been at the "worker bee" level. As anyone familiar with the company would expect.

We already had our 9k done in January, but we also had rounds in Feb and March. I'm not sure if they took that 9k and spread it out over the quarter, or if those other two were off the record.

Either way, down south we dont have enough upsteam field workers left to cut. We're pretty much at capacity for the amount of rigs we have.

I imagine this 11k is going to be the midstream/downstream cuts. Seeing as how those sectors were mostly unaffected initially after rig counts dropped, I bet they are finally seeing the production drop now so the cuts are now coming to them.

[streetdemon70]

US rig count -34 this week.

Total US rig count at 954




Also, H&P's Odessa yard now has 48 rigs in it.

wow. almost 3 times what i thought.

[GrayStangGT]

Any idea how many? I would definitely expect round two...

Didn't hear a number, just that they hit the land and drilling departments hard.

[80coupe]

We're staying pretty busy in Oklahoma with xto.

[akfodysvn]

Schlumberger plant here is cutting everyone to 32hrs work weeks. Setting them up for unemployment benefits.

[Strychnine]

We believe the rig count collapse is in its late innings (as long as crude oil prices hold near current levels). The magnitude of weekly declines likely peaked in February and will begin to lessen into May and eventually stabilize during 2Q.

the decline in rig count has usually been about 40% to 60% in past oil downturns, and as of this week, the rig count has fallen by about 55% since the October 2014 peak of 1,609 active US oil rigs

Despite heavy pressure on energy prices from a glut of crude oil, Wall Street doubts many companies will follow oil-field services company Schlumberger Ltd’s example and lay off thousands of workers.

Most industry analysts are predicting oil prices will recover over the next year, so companies, especially oil producers, may be reluctant to fire employees — incurring severance and other related expenses — only to have to hire them back a short time later

[KBScobravert]

They are reluctant to layoff but not to terminate or cut hours down so much that the workforce thins itself.

[Strychnine]

Five years ago today

[Denny]

They are reluctant to layoff but not to terminate or cut hours down so much that the workforce thins itself.

Voluntary and/or justifiable termination will justify not having to pay unemployment. There is way too much impatience in our field to not give it a try.

[Snatch Napkin]

They are reluctant to layoff but not to terminate or cut hours down so much that the workforce thins itself.

Yep, same thing happening in our camp.
I've seen a heavy increase on abnormal amounts of bullshit being placed on people that have been on the fence of quitting.
Write ups happening left and right, new rules popping up, and guidelines set in place to snitch on co-workers.

Voluntary and/or justifiable termination will justify not having to pay unemployment. There is way too much impatience in our field to not give it a try.

They're gonna have to lay me off with a severance package. Good luck busting me.
Paperwork is in check.
Zero write ups.
Excellent work ethic.
Paid less than a lot of lazy fuckers.