Tens of Thousands Are Getting Laid Off in U.S. Shale Patch

A lot of truckers still seem to think they’re bulletproof when it comes to layoffs. There will be massive layoffs in the trucking industry as well. Very soon! It sucks

 

This is part of the contributing factor.
Saudi Arabia just won control of the oil market (opinion) - CNN

 

I said it will happen and here we are.

The companies involved such as Diamondback, Occidental (Spelling?) are caught between failing market value of all assets and existing debts along with the need to have high oil price per barrel to break even. When the markets fell last month (And continues to fall in oil pricing down below 20 a barrel with sub 10 dollar barrel target in a few weeks if not sooner. Creating 1.00 gas or less already being sold in Kentucky and other places for the first time since at least 1990 on back.) the companies must cut costs in some way. Or shut wells. Or a combination of those two combined with dismissing workers who cost too much to pay.

Another part of the problem is some companies went ahead and withdrew in cash all of their revolving credit lines. Boeing for example suffered about 12 billion losses on paper and what do they do? Borrow 60 Billion to the hilt against big set of US Banks before the banks decided to take away their liability by removing the credit line potential from Boeing. But Boeing got there first and withdrew the money.

Now they are bankrupt on paper. Its not cash cash in pocket to spend, once the existing interest eats em up like a cancer within. Boggles the mind how companies can be so desperate for cash money and do it so badly. When they only have lost a little bit.

If I was to look at say 100 dollar monthly budget and consider the additional costs of maintaince that was pushed to the top to be done quickly and combined with the necessary pre-panic restocking of the houses we were probably out 40 dollars or 40% into our budget for this month alone. We also have committed about 3000 dollars total to be spent by June. We consider those losses in a way. Essentially expenses.

Our worry is that the shops which are small businesses will not exist 90 days from now. 2 to 7 million are already filing for unemployment next week Monday Hundreds of thousands were not counted last week because unemployment systems failed in several states all together. Utter and complete failure. You would think these workers go to local office and apply using a pencil and paper (Or black ink) and talk face to face with any number of state workers. But no NYS in their wisdom thinks to do this at arms reach via technology,.

Much good it did them.

 

I think at this point nobody can predict for sure how bad this is going to affect the trucking industry. We are lucky in times like this we chose this industry as in the past truckers generally can keep rolling even when things slow down. That said, this current crisis is unlike anything we’ve seen before and there’s definitely going to be a massive slow down. Will there finally be actual pink slips handed out in this industry? I’m in the environment up until now as companies staff themselves with multiple recruiters doing anything and everything they can to bring new drivers in. Those days are gone for sure. Recruiters are definitely going to get canned now. But how deep will it hit truckers in general? That average driver out there looking for work, two weeks ago could literally pick from hundreds of companies that would hire him. Now we might have to look for several months before he lands any kind of work at all. And then a few months from now he may not be able to find work at all. Company drivers are probably going to get less per mile too. Paycuts if you want to keep driving are coming.

 

See I think that’s probably accurate for the next couple of months because of all the hoarding going on. But the hoarding’s going to come to an end. And then people are going to have way too much food on hand. And they’re also going to be broke so they’re not going to be out buying and restaurants are going to be closed it’s going to be less demand for food overall in about two months from now. So I think even refer drivers are going to get hit. People are going to be eating as cheap as they can to because they’re broke.

 

Look I don't know much about the world oil business. But I do know this. When the price of gas drops radically the US oil companies will shut it down. Seen it in the 70s. Worked in it in the early 80s. For weeks on end we were traveling and shutting off pumping units and capping wells.

 

Well I have other skills. I didn’t go into trucking until age 42. But all the skills I have, all those industries are going to be smacked around as well. LOL I plan to stay in trucking until I retire. At least another 25 years.