oilfield laying off

If you are sitting in an oilfield and you are surprised that oil prices plummeted when Dodd/Frank limits on NYMEX and CBOE speculating took effect... I would think that if my livelihood depended on oil prices being $100 I would be paying attention. I never thought it would lose half its value in 3 months but then again, I got out of speculating in '08 (I had no choice, I lost all my money) so I haven't been paying attention. Don't panic, it will come back to $80 in a few months.

 

we can hope it's back at $80 in a few months but ya never know. i read somewhere, i'm looking for the link know, that some of the big players are leveraged pretty well for the year. EOG is one i specifically remember being leveraged at around $80ish a barrel for over 75% of what they can produce for the 2015 year. the question is do they pump the oil and deliver on those contracts, or buy them back for say $60 a barrel and pocket the $20 a barrel profit and not pump anything? i know what i'd do if i was them.

 

Well guess what... they are not going to drill and frac forever. ...but after the wells are drilled then 99% of their expenses are gone.. so they are not going to shut in the wells and quit producing....That's where the oil company makes all of its money..they will continue to pump oil till it cost more to pump then sell and make any profit. .. so ,yes, if you work on rig or you do service work or haul frac sand,then u might want to find another job... but for us crude drivers and some water haulers, we still have a job security till the stop making fuels out of crude oil... that is beyond my lifetime

 

Keep in mind as well that OPEC has lowered its bbl price as well and when they do that... the "supply and demand" will dictate the price per bbl in US produced oil& gas. Thus, leading to decreased prices to remain competitive with the foreign oil market. Companies make less per bbl, the less exploration and continued production (based on lifting cost as stated by Guntoter) there will be... companies cut back costs to operate, drillers, contractors and service companies get stacked and people get laid off...

And even with the cut backs, there are still O&G job vacancies are being advertised... but only for the highest qualified applicants.

 

OPEC didn't lower their prices. It's a commodity. They just maintained output which happens to be outpacing demand.

 

You are right... I misspoke. Was having the same conversation with my wife at the same time I was typing.... lol... started writing what she was saying... oops

 

Happens to you too? Thought it was just in my house...sigh.

 

Currently Im working as a fueler were still working and supervisor is saying there turning down. I've been working in oilfield for three yrs now first time Frac and currently driver/ fueler is this the right time to start looking for something else or will things maybe get better?

 

Well if they stop or slow down drilling and fracing, and that is the only place u deliver too, its gonna hurt yall,. I would switch to go petro or somewhere like that

 

ya right that is about the most missed managed comp. i have yet to see!!!!