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Oil Jobs Lost: 250,000 And Counting, Texas Likely To See Massive Layoffs Soon
Submitted by Charles Kennedy of OilPrice
Crude oil just capped off a third straight week of declines, as WTI nears the $40 per barrel threshold. Goldman Sachs is once again raising the possibility of oil dipping into the $20s per barrel.
That spells more pain for the energy sector. Many companies have already slashed spending and culled their payrolls, but the total number of job losses continues to climb.
According to Graves & Co., an industry consultant, oil and gas companies have laid off more than 250,000 workers around the world, a tally that will rise if oil prices remain in the dumps.
“I was surprised it’s gotten this far,” Graves & Co.’s John Graves told Bloomberg in an interview. In an eye-catching statistic that highlights who exactly is bearing the brunt of the downturn, Graves says that oilfield service companies account for 79 percent of the job losses.
Still, upstream E&P companies are also being substantially squeezed by another plunge in oil prices. According to an analysis by the Texas Alliance of Energy Producers, a new round of layoffs could be underway in Texas, for example. The Texas Alliance predicted that the first drop in oil prices last year would lead to 40,000 to 50,000 layoffs in Texas. But the renewed drop since the end of the summer could force many more cuts. Right now, the group is putting a conservative estimate at 56,000 job cuts so far, but they say the real tally is probably higher.
Beyond oilfield services and E&Ps are not the only ones feeling the heat. Pipeline companies are also starting to lay off workers as well. Last week Enbridge confirmed that it was laying off 500 workers and leaving 100 positions unfilled, according to the Financial Post. The job losses account for about 5 percent of Enbridge’s North American workforce.
Fellow Canadian pipeline company TransCanada says that it will be issuing pink slips as well. While TransCanada confirmed that it would cut payroll, it declined to put an exact number on how many people would lose their jobs. TransCanada, reeling from the rejection of the Keystone XL pipeline, is struggling to get several major pipeline projects through the permitting phase, although it just won the go-ahead to build a large natural gas pipeline in Mexico.
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That's enough boots on the ground to take Saudi Arabia, I think.
Or, rather, enough boots on the ground to settle a New Texas Republic in southern provinces throughout Turkey. After all, there is room for more competition to broker oil to resource poor countries and we've got Goldman Sachs
250k and that is just Oil Job Layoffs. Look at all the other sectors.. what a mess
Layoff / Closing List: http://www.dailyjobcuts.com
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The 'mean' companies will lay them off now but the 'nice' companies will wait until after Christmas. Practically speaking there isn't much difference but wouldn't you want your company to give you the chance to go more in debt before Xmas before your head was put on the block?
Life won't be too bad.
X-box, weed and the usual trimmings when you join the FSA.
NUMB AND DUMB
Most oil field workers would rather die than join the free shit army.
They work hard; they still have their pride.
The truth is that oil patch jobs have been in decline ever since Barry the Bozo took office... There has been a coordinated effort to kill the oil industry in the US since 2008... Can anyone say BP oil spill? Companies started dying when Barry deemed the spill a disaster and banned all offshore exploration for over 2 years, killing the small players...
And the really nice companies will warn them they're getting laid off after Christmas, so they don't run out and shop up a pile of bills.
I hope that after some investigation that not only is Turkey implicated in the illicit facilitation of ISIL crude sales, but that the cadre of cooperatives includes: Saudi Arabia, Jordan, Qatar, England, Japan (someone should be taking photos in the shipyards of tankers since their media will not), EU-member nations, and, of course, The United States of Hindsight (America).
"And if you're a Rebel moving Product
and the whole neighborhood hates you:
that's Uncle Sam's Curse."
-Above the Law, 1994
Wild Turkey? :)
Why is CA on this list, they refuse to tap oil? Hence no jobs to cut.
Why is CA on this list, they refuse to tap oil? Hence no jobs to cut.
laid off in 1980 when oil dropped from $40 to $10/bbl, 75% decline was the bottom. So expect $25/bbl as the bottom. new reports of massive inventory being stored offshore in tankers helps keep the price at $40, but expect lower prices for many years. Terrible time to be looking for a job.
Bullshit !!! there was no $10 bbl in 1980 - i have the working interest check stubs to prove it @$39 bbl in Wy - if you got laid off in 1980 you had to be a cripple - everyone was working
June 1986 - $9.62 / bbl - never go close before that
Perhaps he left off the 's for 1980's... Houston turned into a waistland of empty homes where people just walked away because they could no longer afford their mortgage...
Houston we have a problem
Yes we do.....overcrowded with illegals/somali ass lookin niggas, too humid, and terrible, terrible traffic.
Houston tent city redux. Coming to a freeway overpass near you
Only it will be very different this time.
Hell, you can't stop at a traffic light along I-10 frontage road without seeing at least 4 panhandlers at every intersection... There are plenty living rough in Bush Park FFS... No tents because the HPD patrols it with choppers, running off anyone they find there...
We are about to ditch.our perverted mayor at least. Now I just pray that sylvester turner nigger doesnt get the nod.
I also pray for Sheila Jackson Lee to have a stroke or a crack overdose.
I blame the moonbats in Austin for Jackson... After all, their motto is "keep Austin weird", which fits Jackson's MO to the tee...
hurts donut job...the hole is your ass...
and an apple fritter is your impacted colon
What happened to the Peak Oil crowd?
It's all part of O'Barry's 'robust recovery' ... his "Legacy" of prolonged deep recession. I read somewhere Houston alone has lost over 56,000 high paying energy jobs. Since the median salary of earl engineers is $185k, and energy accounts for 40% of Houston's GDP, that has to be bullish for the Texas economy.
Peak oil is still with us. Most expected peak oil to occur with pices rising not falling.
Still looking for somewhere to drill that isn't under a mile of water. Check back later.
Oh, it's still here. what do you think caused the crash of 08? If you read Gail Tverberg's work you'd understand that we're at peak now - ourfiniteworld.com
LOL. They got the drop in consumption they always wanted and they're still complaining. That's because it's another pretense to raise taxes.
I'm familiar with Tverberg. She posts impressive statistics that can't account for the many unkowns in a dynamic world. It was only recently people like her were forecasting $100+ oil. Except for a few who get lucky, they are always wrong.
I have... And it's the typical thin veneer coating of an excuse for population reduction/control under the cover of 'resource scarcity'. Yawn...
"Peak Oil" .... Did Goldman write that story too? These fucking wankers better get a story going to get oil up to $60 before all their other great stories are shot to hell too. Don't think for one second that any of "The Stories" can't be bought and sold by the machine if and when it suits their agenda.
^ spoken like a true cornucopian!
deleted double post
Payback is a bitch when the fed and investment banks fuck with commodity prices.
they are hiding in the peak population crowd reading ishmal...
Never would have guessed ND was hurt the least.
i think layoffs relate back to headquarter location.
Bakkenstein .... starring Barack Hussein Obama ?
Oil good. Fire bad.
Houston we do indeed have a problem:
http://www.bizjournals.com/houston/news/2015/11/24/houston-based-energy-...
Like 2008 all by design.. I reside in a major metro area. Lets just say im still waiting for the Day i run into Santelli on the sidewalk and get the opportunity to remind him what a total fraud he is. Feel free to come around and witness the mass influx of of brown people with 4 kids. Banks,.I.T. ok you all get it. See the pattern ? Wonder why we are carting in folks of certain ilk? I find nothing happens by chance at this stage in the game. We all know that WTI is what it is because someone wants it there not because it got there due to natural forces. The crime cabal seem to rarely do things were there is just one positive benefit ..Knock the knees of Putin, Iran, lauch some high paying jobs, ship in the replacements ..Ok. maybe too much black thursday..
Boo friketty hoo! Should of saved money when you were fucking me in the ass for $4 a fucking gallon. You were stealing my money for 8 years and now you want my sympathy. Pucker up and kiss my stinky balloon knot!
"the possibility of oil dipping into the $20s per barrel"
That would be just fine with me!
Every time i see somebody making money hand over fist i say to them you're putting some aside for a rainy day, right , they look at me like I am crazy.. hey guys i hate to tell you this but it's raining..
I remember seeing signs in Alberta in the early 1980's that said "Please God, let there be another boom and I promise not to piss it all away this time". Very funny but true.
Over the last 30+ years there has been another boom and I always remembered that saying and made sure I was ready for the next bust. It always happens so to not prepare for it is just fool hardy.
Now a lot of nice people are hurting as well. I feel sorry for those just starting out as they are in debt for homes but for those who just lived high on the hog not so much.
Those jobs are going to ISIS
"We gave some folks jobs"
I expect that the cyclical nature of the oil industry will be the BLS reasoning to treat all job losses as seasonal and exclude them all. Seasonal gains for the retail holiday period will be included so data will be on track for the rate hike.
/sarc
5% unemployment ha ha ha
Hard to say how many if any contracted "employees" are in that number.
This downturn has really hit my company hard. But I still have much to be thankful for, as I'm sure we all do. Happy Thanksgiving!
-Argenta
DC is number three for layoffs??? Using total state population, TX layoffs look about 0.37%, CA 0.02%, NY 0.01%, AK 0.007%, LA 0.005%, and DC 0.89%. WTF?
Reporting form Lafayette ,La
This is energy town , hell down town has the Oil center..so what does that say
you drive hwy 90 that takes i-10 to Morgan City and it's dam near all oil related , yards full of pipe and super expensive equipment and if it's in a yard it's not making money
CATdealer on that hwy is STUFFED like a turkey
I pass the Lafayette airport twice a day
PHI helicopters , whole fleet is there in the morning and afternoon
Frank's International is building a big
near all glass HQ and now when I pass I see a handfull of constrction workers which probably should have been completed months ago
Don't see how LA is not higher other than the chemical plants in Westlake La must be making the numbers look good cause I know what I see
Dallas Fed ---Zero Hedge
http://www.zerohedge.com/news/2015-01-02/low-prices-lead-layoffs-oil-patch
Thanks for the LA info.
They should stop counting them shortly then the unemployment hoax with drop to 4%.
Good thing Barry passed the Keystone Pipeline so all these people can keep working. Oh,
disclaimer* I dont know shit about the KPL, but whatevs
Here is ALL you need to know about Keystone:
Saudi Terrorists' imports good, Canadians' imports bad.
And Bangin' 7 you are about to get fucked again with 4 dollar gasoline ........ same as it ever was......
Correct.
Much higher gasoline will follow much lower dollar when the real printing begins. First though, we should see crude dance with the $20 handle for some time.
When the oil patch jobs disappear, so do the ancillary jobs. Restaurant jobs, hookers, strippers...These may not be counted in the official stats.
And even a bigger tragedy?
Actually I suspect there will be an increase in strippers and hookers... they just won't be as well paid.
My brother-in-law is involved in the shutting down of those oil worker camps (housing for 1000+) and you could not believe the amount of porn that is left behind in the rooms after the workers get their 48-hr layoff notices. Apparently, many also subscribed to online sex sites so that's another industry downturn about to happen.
Well then I guess we can look forward to seeing this in the unemployment reports from the coming months, right? Right?
Add in Alberta with 35,000 gone (10k in exploration & 25k in services)
http://www.huffingtonpost.ca/2015/09/02/alberta-oilpatch-layoffs_n_80786...
HUBBERT PREDICTED THIS!
IT IS CALLED THE "ROCKY PLATEAU".
From now on ...
If you want cheap oil, you will have a sluggish economy and high unemployment.
If you want low unemployment, then you will have very expensive oil.
(Dr. Copper has spoken)
(and just tell me the replishment rate if you believe in abiotic oil)
What about those jobs who build paper pyramids on the real goods and services in this setor ? What about the global reverberations ?