Southwestern Energy to cut 44% of workforce.

Discussion in 'Oilfield Trucking Forum' started by Chinatown, Jan 21, 2016.

  1. Chinatown

    Chinatown Road Train Member

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    NEW YORK (AP) — Southwestern Energy said it will cut 1,100 jobs, or about 44 percent of its workforce, as the price of crude wallows at levels not seen in more than a decade.

    The oil and natural gas company had about 2,500 employees before the announced layoffs, said a Southwestern Energy spokeswoman.

    In a government filing Thursday, Southwestern Energy Co. said it had no drilling rigs in operation at the start the year and expects drilling activity to decline.

    An oversupply of oil is bringing prices down. Since the beginning of the year, the price of crude has dropped about 20 percent. As a result of plummeting prices, thousands of jobs have been slashed in the energy sector over the past year.

    Southwestern Energy said the job cuts will save it about $150 million to $175 million a year. It expects the layoffs to be completed by the end of the first quarter.

    Shares of the Houston company rose $1.23, or 16.7 percent, to $8.61 in afternoon trading.
     
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  3. xsetra

    xsetra Road Train Member

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    I give the US economy about 1.5 years before it tanks again. Since the FED has not brought interest rates up for a few years they can't lower them this time to flood the market with cheap money.
    Commodity prices across the board are low meaning low demand. Shrinking of economy.
    Good luck to everyone.
     
  4. Chinatown

    Chinatown Road Train Member

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    Now that sanctions are lifted on Iran, they plan to flood the market with even more oil. Their reason is to punish Saudi Arabia and the royal family.
     
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  5. tucker

    tucker Road Train Member

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    We need a giant war with anyone in the Mideast to get oil up again. Or else we are doomed.
    Our economy is so messed up I can't believe we haven't dropped the smallpox virus on China yet.
     
  6. Luke628

    Luke628 Light Load Member

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    I'm still hauling crude, been doing it 3 years. 90% of the people I knew doing this work have now been forced out of it. I'm blown away how low the price has gotten. The low price has ripple effects. I spoke to a recruiter at a chemical company and he told me he gets multiple calls a day from oilfield drivers looking for work. Owner Operators aren't making much money as the low gas price has flooded their market. The dirtiest four letter word these days is OPEC. They've done this on purpose to hurt the U.S Energy sector.
     
  7. No names left

    No names left Light Load Member

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    The Saudis started this to kill off the Shale industry, but Shale proved to be far more resilient than anyone expected. Venezuela is on the verge of defaulting on its foreign debt and the Saudis are having to borrow money to pay their bills as well.

    It may take a few more months to shake out some of the companies that are in bad financial condition, but the good news is that the bottom may be in for the price of oil. http://www.cmegroup.com/trading/ene...iate-wti-crude-oil-calendar-swap-futures.html
     
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  8. rickybobby

    rickybobby Road Train Member

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    As a consumer..... I'm loving the low fuel prices. People where saying we where doomed when the fuel prices were up.
     
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  9. rachi

    rachi Road Train Member

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    what does this mean for all of us drivers who dont work for energy companies?
     
  10. Chinatown

    Chinatown Road Train Member

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    Cheaper fuel which means more people buy new automobiles such as SUV's, pickup trucks. The economy should improve, but people in the oil sector will face layoffs and have to transition to other occupations such as OTR truck drivers. A glut of oil worldwide should not affect OTR drivers in America and may actually create more driving jobs as general freight becomes cheaper to manufacture and sell to consumers that will have more discretionary income.
    The downside is the banksters on Wall Street will take a beating on oil related stocks and retired people that have too much of their portfolio in oil related stocks will suffer; they should have diversified!
     
  11. FT/KENT-KEY WEST

    FT/KENT-KEY WEST Bobtail Member

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