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Chevron Slashes 23% Of PA Workforce As US Rig Count Collapses To June 2010 Lows
For the 8th week in a row (something that hasn't happened since June 2009), US total rig count plunged. This week's 90 rig drop to 1543 is the largest so far (with oil rigs down 94 to 1223 - lowest since Jan 2013). The total rig count is now down 20% in the last 8 weeks to the lowest since June 2010 as it tracks the 4-month lagged oil price perfectly. This is the 2nd biggest 8-week drop in 22 years. This - rather unsurprisingly - has led Chevron to decide to cut 23% of its Pennsylvania workforce "due to activity levels." Not 'unambiguously positive' as so many in the central planning bureaus would have everyone believe.
The Rig Count continues to plunge along with lagged oil prices...
Obviously for oil prices to eventutally stabilize, production will have to slow and rig counts plunge further.. and so will jobs...
- *CHEVRON TO CUT 23% OF PENNSYLVANIA WORKFORCE AMID CRUDE SLUMP
- *CHEVRON JOB CUTS STEM FROM LOWER-THAN-EXPECTED ACTIVITY LEVELS
Charts: Bloomberg
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CHEVRON & BP MERGER ANNOUNCED TODAY!!!
Holy Balz! Who can fuck in this kind of weather?
Pennsylvania?
Hmmm.
Oh!
Look really, really, closely.
It is the green line on the chart...down at the bottom...right above the x-axis.
As you can see, the Texas and ND hockey sticks continue, as does AK's production decline.
You printed an oil graph.
PA is a gas state.
Gimme and F, gimme an A, gimme an I, gimme an L!!
My point, exactly.
So, add that fact with the PA layoffs and the declining rig count are being blamed on lower crude prices and tell me what you come up with.
PA was an oil state.
Someday we may say PA was a gas state, but it will be a coal state for a long, long, long time.
nation in 2012, and the only state producing anthracite coal, which has a
higher heat value than other kinds of coal.
the Marcellus Shale, exceeded 2 trillion cubic feet in 2012, a 72%
increase over 2011 production.
in Shippingport and operated until 1982; in 2013, Pennsylvania ranked
second in the nation in electricity generation from nuclear power.
of electricity sold by compliance year 2020-2021 to come from approved
renewable or alternative sources, including at least 0.5% solar
photovoltaic power. In 2013, renewable energy accounted for almost 4% of
Pennsylvania's net electricity generation.
than any other fuel, but electricity (29 percent), fuel oil (20
percent), and propane (9 percent) are also widely used in the state,
according to EIA's Residential Energy Consumption Survey.
http://www.eia.gov/state/?sid=PA
I don't know why you got down votes on your two posts here, HH. You're exactly correct.
I live in PA where this is semi-common knowlege.
Hh, to expand slightly your second bullet point, PA's gas output in 2013 increased again to over 3.2 trillion cubic feet. While the EIA's 2014 numbers have - I believe - yet to be published, the Marcellus' figures should push PA over 4tcf/yr.
Several takeaway pipelines were completed or reversed in November/December so 2015 should increase yet again, especially as there are about 2,000 wells (18 months worth of production) completed but not producing due to lack of takeaway capacity.
The oil refineries in the Philly area have become a major east coast destination of choice for CBR from the Bakken.
You want to keep 172 people employed @ 6 figures a year or do you want cheap gas?
Thought so.
I'm a Merikan damn it! I want and deserve both!
It's only fair, eh.
New BLS category U7 Laid off Oil Dudes
LMAO!!!
Some Folks were laid-off
R-E-C-O-V-E-R-Y
All good, they can just buy Facebook
And those are not your run of the mill salaries involved there either.
Things will get better when Mr. Yellen raises rates though. :)
Man I chuckle everytime I think about that. Raise rates. lol.
pods
but at least those just fired are happy consumers - they still have that going for them
http://www.zerohedge.com/news/2015-01-30/everything-awesome-american-con...
So...not different this time?
Now that they stopped buying back their stawck at all time highs and burning cash , they have to cut the fat to preserve the dividend. Gotta keep Wall street somewhat happy.
Drop your guns or the dividend gets it!
WHATS OIL?
Just pick the number of rigs before the TBTF banks declare the oil surplus is over and production cannot keep up with demand.
It's one more domino to fall but 162 people? Try to keep it real
http://www.heraldstandard.com/new_today/chevron-to-lay-off-as-many-as-fr...
When you're part of the 162 group, then it feels much more real.
But it is the Trickle down. Car dealers, plumbers, whores etc that were all servicing these 165. That is where the real damage is.
No hotrod - that is old school thinking. For the Chevron folks that got whacked, they are getting a double tax cut. They get to enjoy lower gas costs and their taxes for 2015 will go way down. Unambiguously good.
Also, the reporting of this is all wrong. Why are we talking about the # they let go. Obama admin would view this as they saved 760 jobs and only lost 175 so it reflects the strong labor market!!
The exact totaly is 172.
The exact total is 172.
thanks for the correction.
.
These laid off workers can just buy boutique burger stawks and be ok now.
They're just "restructuring" their work force.
Another friggin euphemism for failure.
They lay off people and their stock is down $2.50?
Stock should be soaring.
Wolf will cut the rest
With any luck.
The outcry over *lost* energy jobs always kills me. When coal mines or coal jobs are threatened in West Virginia, they always whine about their "way of life" being destroyed. BFD. Get over it and learn a new trade or new skill.
I guess they must be too stupid to do so.
Down-voted by one of the dimmest among us, I guess. No way of knowing otherwise, since they appear to be too cowardly to actually reply to my comment.
wow, 172 people are getting laid off? If that's not evidence of the impending collapse, I don't know what is.
i think the rig count is more compelling
On the same subject:
http://www.oaoa.com/premium/article_41c7460e-a832-11e4-9b37-9bdd79923415...
WINNING!
No problem, all these laid off 'Ayn Rand types' can sell their F-150s, guns and 20-year supply of ammo and start their own fracking buinesses.
Your comment angers me...because I cannot click the "up-vote" button more than once.
Let me know when you start seeing adds for the 20 years worth of ammo. It would be nice to double my supply to defend my lake full of PM's.
Energy XXI gets a 50% debt cut and a stawk cut of 88%.
That's gonna leave a mark on the pension funds and insurance companies that were gobbling it up !
http://www.bloomberg.com/news/articles/2015-01-30/oil-plunge-puts-390-billion-hole-in-investors-pockets
It takes 7 to 10 days to setup an oil rig. The previous article stated that due to pad drilling (multiple wells on same pad) each rig drop today is equivalent to 3 that happened ten years ago. As a well takes 30-60 days to drill, i think that is wrong, and esimate that one rig is equivalent to 1.3 rigs in older figures.
Just google "Marcellus shale" to see what else Chevron missed.
No oil in Pennsylvania? Yeah, right.
Of course "we don't need you or your oil" does come to mind.
why note the most important thing CHV CEO said on EPS call? Virtually no new fields are economical at $50 oil period. So why is strip still only at $60 even at Dec 2016 I ask? Will the US not need any production growth thry 2016? LOL this is maniplation plain and simple.
It's not all bad, now they will be getting paid what they are worth. Relief now comes in the form of Medicaid and no Obamacare premium, unemployment compensation and then minimum wage if they are lucky... just like everybody else who doesn't know somebody.
jp-morgan-chase-eliminate-350:
http://www.13wham.com/news/features/top-stories/stories/jp-morgan-chase-...
PMorgan Chase & Co. said Thursday it plans to cut more than 350 jobs later this year. The banking company has notified local employees at the Chase Tower location downtown about the job eliminations in late summer or early fall from its mortgage banking operations. All of 350 positions will be eliminated from that location. JPMorgan employs close to 1,500 in the Greater Rochester area. The cuts are due to a decrease in mortgage modification work with people in danger of losing their homes, as well as mortgage refinancing in general, according to a JPMorgan spokesperson.Read More at: http://www.13wham.com/news/features/top-stories/stories/jp-morgan-chase-eliminate-350-jobs-19668.shtml text size JP Morgan Chase to eliminate 350 jobs Updated: Thursday, January 29 2015, 05:26 PM EST JPMorgan Chase & Co. said Thursday it plans to cut more than 350 jobs later this year. The banking company has notified local employees at the Chase Tower location downtown about the job eliminations in late summer or early fall from its mortgage banking operations. All of 350 positions will be eliminated from that location. JPMorgan employs close to 1,500 in the Greater Rochester area. The cuts are due to a decrease in mortgage modification work with people in danger of losing their homes, as well as mortgage refinancing in general, according to a JPMorgan spokesperson.
Read More at: http://www.13wham.com/news/features/top-stories/stories/jp-morgan-chase-eliminate-350-jobs-19668.shtml text size JP Morgan Chase to eliminate 350 jobs Updated: Thursday, January 29 2015, 05:26 PM EST JPMorgan Chase & Co. said Thursday it plans to cut more than 350 jobs later this year. The banking company has notified local employees at the Chase Tower location downtown about the job eliminations in late summer or early fall from its mortgage banking operations. All of 350 positions will be eliminated from that location. JPMorgan employs close to 1,500 in the Greater Rochester area. The cuts are due to a decrease in mortgage modification work with people in danger of losing their homes, as well as mortgage refinancing in general, according to a JPMorgan spokesperson.
Read More at: http://www.13wham.com/news/features/top-stories/stories/jp-morgan-chase-eliminate-350-jobs-19668.shtml
There are 350 more people that will be in danger of losing their homes.
oil is dead
cold fusion is here
/www.extremetech.com/extreme/191754-cold-fusion-reactor-verified-by-third...
32 day documented verified test run ...
bottom line... 900 watts in ... 2700 watts out
free energy for the planet
oil is a barbaric relic
And again until oil rises to $70 you wont see any new production of significance...period...i should have said new production not new fields on prior note are not economical at $50.....so I ask where is the oil going to come from? Is the Fed going to print it?
Every energy sector job is an order of magnitude worse for the economy than the usual retail or service sector cuts backs. Energy workers are in the top % for pay in the so called blue collar work force, not to mention all the technical staff and engineers who will be axed. These are all $$ 50-150K payscales jobs, taking a big bite out of housing demand and consumption across their communities.
the knock on effect in the metals business may be worse than the direct oilfield jobs
Oh Philby, how we miss you !
Lower oil prices are good for the economy, mkay?
That's okay, unemployment will drop on this move.
"This drop in employment pushes more folks off of the official rolls. Therefore, Employment has Increased!! Reggie and I are proud of US Workers!"
Didn't Nancy Pelosi once tell us that unemployment benefits were good for the GDP ? or something like that
edit>> she said it was the fastest way to create jobs. thats all Chevron is doing here, then, right? ugh
So....this smells like another 'hysteria' article.
Give the 'total U.S. rig count being down, then state a 23% reducing in PA for oil rigs, which Headless Horseman has shown to be fairly insignificant as little oil comes from PA.
How about actual numbers of rigs and employee cuts instead?
Prolly not that exciting.
Hysteria articles really annoy me.
This article is poorly written, these rigs getting cut drill for gas not oil. PA is a big gas producing state but not oil.
We "punished Russia" in 2008, too.
I live in PA. Its best described this way:
Pittsburgh on one side
Philadelphia on the other
With Arkansas in between
Its the morons in Pittsburgh and Philadelphia that typically control its politics. Plenty of "Natural Gas" produced in those cities, alright
"but larry, the, the, the tax cut....."