Posted on 01/21/2015 7:17:17 PM PST by Kartographer
#1 It is being projected that the U.S. oil rig count will decline by 15 percent in the first quarter of 2015 alone. And when there are less rigs operating, less workers are needed so people get fired.
#2 Last week, 55 more oil rigs shut down. That was the largest single week decline in the United States in 24 years.
#3 Oilfield services provider Baker Hughes has announced that it plans to lay off 7,000 workers.
#4 Schlumberger, a big player in the energy industry, has announced plans to get rid of 9,000 workers.
#5 Suncor Energy is eliminating 1,000 workers from their oil projects up in Canada.
#6 Halliburton’s energy industry operations have slowed down dramatically, so they gave pink slips to 1,000 workers last month.
#7 Diamondback Energy just slashed their capital expenditure budget 40 percent to just $450 million.
#8 Elevation Resources plans to cut their capital expenditure budget from $227 million to $100 million.
#9 Concho Resources says that it plans to reduce the number of rigs that it is operating from 35 to 25.
#10 Tullow Oil has reduced their exploration budget from approximately a billion dollars to about 200 million dollars.
#11 Henry Resources President Danny Campbell has announced that his company is reducing activity “by up to 40 percent“.
#12 The Federal Reserve Bank of Dallas is projecting that 140,000 jobs related to the energy industry will be lost in the state of Texas alone during 2015.
(Excerpt) Read more at theeconomiccollapseblog.com ...
The oil business has always been boom or bust. Nothing has changed.
For now, perhaps. How many of these have we seen in just our lifetimes? Unlike buggy whip making and elevator operation, these jobs will be back.
True, this is just a bad time for it to go bust. Many were counting on it to keep us out of a deeper recession.
Of course raising the minimum wage of ‘burger flipping’ jobs might do it as well. ;-)
Maybe ... but then again, if a portion of the economy goes south, and the GOP can push it on Obama, then it will help in November 2016.
When this last happened at the height of the cold war in 1985, it followed a visit by then Vice President George H. W. Bush to Saudi Arabia. Bush convinced the Saudi royal family it was in their best interest to reduce the price of crude oil to regain market share. As a beneficial side effect, Russia lost a major source of foreign exchange. This followed a major investment by Russia in radar capability, which was largely negated by the publicity of the US then recently developed stealth technology. With reduced foreign exchange, Russia was unable to replicate the stealth technology and the Soviet Union failed. Unfortunately, the economies of the oil producing states, Texas among the most extreme example, were crippled.
This time around, Obama visited Saudi Arabia twice during 2014, Bidden called the Saudi royal family once and the UAE twice. This time it appears the primary objective is to cripple the oil producing states economies, principally Texas, which have been a thorn in Obama’s side. The beneficial side effects of reducing Russia’s foreign exchange, increasing Saudi market share, and reducing the foreign exchange of Iran, along with the positive effect on the economies of states more aligned with Obama, are perhaps just that, side effects.
By the way, crude prices dropped from a intra day high of about $32 in 1985 to a intra day low of $8 in 1986. That is a 75% drop. Prices did not return to $32 on a sustained basis until 2003. Based on that history, we may see oil prices as low as $25 and they may last for several years.
The good news, Texas recovered last time, and will this time as well.
Most GOP are wuzzies are scared of Obama shadow. Hell if Obama was to sign an executive order making ‘Moosehell’ the next president they would even have the balls to form and investigative committee.
Speaker John Boehner, Senate Majority Leader Mitch McConnell have only one ball between them and have to share it like the Grey Sisters sharing their one eye.
It is also destroying Venezuela and Iran, so I do not think Obama wanted this. He wanted high gas prices. His renewable energy sector will be annihilated. Think the theory posted by another Freeper is a better fit. The Saud’s are in a big bind. Iran, the Russians and the Shiites are closing the noose. Look at what just happened in Yemen. The Saud’s knew that was coming. World War III began at Benghazi and is picking up steam.
No, not exactly nonsense, but close.
Just watching local news about layoffs.
And Texas has diversified, luring in all kinds of businesses with low tax and business friendly environment.
Gonna party like it’s 1986.
Number sounds low to me. Real low.
It’s still going to hit the oil patch really hard, starting with the service industry. Probably a year to 18 months before it shows up at the banks.
It is already hitting the service industry. My brother drives truck for a heat treating plant. He told me a week ago that the incoming items to be treated have dropped way off.
So you think low gas prices were an Obama success ? That is nonsense.
This is going to effect Red States and those States like Colorado we are trying to move Red.
Not a good thing.
There, fixed it fer yuh!
Regards,
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