BP Fires 4,000 As Oil Slump Deepens
Just days after The Fed admitted "we got it wrong" on the "unequivocally good" low oil prices, BP has joined a long list of energy entities slashing jobs. The oil company will cut 4,000 jobs in exploration and production because of toughening market conditions "we need to take specific steps to ensure our business remains competitive and robust."
As Fed's Williams recently admitted:
The Fed got it wrong when it predicted a drop in oil prices would be a big boon for the economy. It turned out the world had changed; the US has a lot of jobs connected to the oil industry.
BP Chief Financial Officer Brian Gilvary noted the company’s restructuring efforts started on the corporate side two and a half years ago, where it saw significant headcount reductions in both employees and contractors.
“You’re also seeing significant headcount reductions in upstream and downstream as we progress through the year and I think you’ll see more of that before we get to the end of the year,” Gilvary said.
The further weakness in oil prices has push BP to today's announcement confirming "significant" layoffs to come... (as AP reports)
Oil company BP is cutting some 4,000 jobs in exploration and production over the next two years amid sharp drops in the price of crude.The cuts in BP's upstream business globally will include the loss of some 600 jobs in the North Sea.The cost-cutting announced Tuesday comes as the price of oil dropped to a 12 year-low near $31 a barrel. Part of the decline is due to concern over a drop in demand in China, which is depressing commodity prices worldwide.Company officials began notifying employees of the action in town hall meetings in Scotland.Mark Thomas, regional president for BP North Sea, says in a statement that because of toughening market conditions "we need to take specific steps to ensure our business remains competitive and robust."
The cuts include 600 people working at North Sea projects: they’ll lose their positions over the next two years “with the majority in the first year,” he said.
The job losses add to the 4,000 positions cut by BP last year as it hunkers down for a prolonged period of lower prices. Crude’s slump has been brutal for oil companies as revenue and profit drop, projects are postponed and thousands of employees are fired.
- *BP AIMS TO HAVE HEADCOUNT BELOW 20,00 BY YEAR END: REUTERS
So yes, dear Fed, you got this wrong as you finally admitted. Very, very wrong. But that's ok - just keep on supporting the S&P500, surely nothing wrong can possibly happen there...
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Well.......at least oil isn't abiotic.
"The Fed got it wrong when it predicted a drop in oil prices would be a big boon for the economy. It turned out the world had changed; the US has a lot of jobs connected to the oil industry."
BTW this statement by Williams is positively moronic and an indication the Fed knows exactly what it is doing and is willing to throw out any excuse to keep the can kicking moving forward.
Notice he says "The Fed got it wrong" thereby applying blame to an institution rather than individuals.
Houston home sales decline by double digits amid oil slump
Houston home sales fell 10.2 percent year over year in October, according to the latest monthly report from the Houston Association of Realtors.
Single-family home sales took a nosedive in all price categories. Houston’s townhome and condominium market saw the greatest hit in sales, tumbling 17.3 percent in October.
http://www.bizjournals.com/houston/news/2015/11/11/houston-home-sales-decline-by-double-digits-amid.html
Three major investment banks—Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc.—now expect the price of oil to crash through the $30 threshold and into $20 territory in short order as a result of China’s slowdown, the U.S. dollar’s appreciation and the fact that drillers from Houston to Riyadh won’t quit pumping despite the oil glut.
http://www.msn.com/en-us/money/markets/oil-plunge-sparks-bankruptcy-conc...
Who cares? They made money on the up swing, now they can eat shit for a while, BFD.
so it is china's falt, hmmm. could it be a tad too much debt here and there causing the demand to drop. and why it that taking place? geez, by golly willikers, da fed again. hmmm, the clear heartwood of the problem...
No good news, anywhere: “Pound plunges to five-year low on 'rubbish' UK manufacturing performance”/“Weakness on the industrial side of the economy means that the dominant service sector has to do even more of the heavy lifting to support GDP growth.” (sound familiar?)
“The fall in industrial output was worse than any of the 30 analysts polled by Reuters had anticipated. There figures were described by Michael Hewson, chief market analyst at CMC Markets, as "unambiguously rubbish".”
http://www.telegraph.co.uk/finance/economics/12094473/Pound-plunges-to-f...
Ignorant question, here.
We can pump oil out, couldn't we buy it all at this ridiculously low price (average down) and pump it back in our own wells for later ?
Its happening now, in real time, except now the eplorers and drillers are using the stay at home while you have it mode. This saves on the cost of putting it back in the ground.<snicker>
In response to your first sentence: yes, it was.
“The fall in industrial output was worse than any of the 30 analysts polled by Reuters had anticipated." ... great great statement!
over and over we see the coordination of "authorities" across oceans and borders (Barrons the same at year end with ten economists) yet all the detailed data was there to see and confirm easily.
the Swedish women are being raped methodically - the german women grouped with abandon - Muslim Woman comes into LA after rigorous background checks - murders countless people and the media says no one........ knew
“The fall in industrial output was worse than any of the 30 analysts polled by Reuters had anticipated." ... great great statement!
over and over we see the coordination of "authorities" across oceans and borders (Barrons the same at year end with ten economists) yet all the detailed data was there to see and confirm easily.
the Swedish women are being raped methodically - the german women grouped with abandon - Muslim Woman comes into LA after rigorous background checks - murders countless people and the media says no one........ knew
But I bet with many of them, human nature won out and they overreached with regards to consumption during the upswing. How can one restrain themselves and guard against overoptimism? Life seems to be one big balancing act, and nobody's perfect.
Who are you designating a shit sandwich, the Officers-shareholders or the 9 million workers? You know who bites the sandwich first, correct? BP just announced that 4,000 sandwiches will be served beginning NOW.
We will all take an indirect hit, not just the grunts in the oil patch.
Rich or poor we all eventually have to eat said designated sandwich. The difference? The more bread you you have the less shit you have to eat.
Wait till Property Taxes goes up in Austin, Round Rock, and surrounding areas
"Mistakes were made."
My last month paycheck was for 11000 dollars... All i did was simple online work from comfort at home for 3-4 hours/day that I got from this agency I discovered over the internet and they paid me for it 95 bucks every hour... Try it yourself... www.wallstreet34.com
'The Fed got it wrong when it predicted a drop in oil prices would be a big boon for the economy. It turned out the world had changed; the US has a lot of jobs connected to the oil industry".
~ There have always been "a lot" of jobs connected to the oil industry, and it has gone boom/bust many times through the years.
Who gives a shit what the fed said! Not like it has any personal effect on that disconnected bunch of assholes anyway.
BULLISH!!
"Yes we can!"
Drill baby, drill!
lol, the implications...
Not to worry these people make good barista's. Obama's economy is working.
Yeah, I can see the similarity between drilling for oil and steaming milk. Thanks for finding the silver lining. Things are looking up people.
Amazing how many unemployed still fork out $6.00 [or moar] for a Starbucks something or other. Add that to a diabetic muffin and they're content to float thru society in a daze.
or slosh it down with a dewske
So it begins. Reminds me of the time before the housing bubble went pop. A whisper here and there while nobody paid attention. Then BAM!!!!!! with everyone saying why me. Well pay attention as class is in session.
But, "It's contained" Soweto said.
"Mission Accomplished" W.
"Oooops" Rick Perry
"I did not have sex with that woman" Bubba
"I am not a crook" Tricky Dick
That's not enough, the TBTFs have to go. That entire system that makes the public pay for the debts of insolvent bank bailouts HAS TO GO. There must be no FDIC bailout insurance, there must be no protection, they need to be subject to accounting rules and if they are insolvent they must close their doors and bad debts be written down.
I heard Mr Fast & Furious himself on National Propaganda radio the other day arrogant as ever boasting there was nothign he oculd do about the financial criminals. 9/10 callers told him BS. Not one indictment in his 6 years being AG.
Even the avarge gruberized American knows Holder was either incompetent or paid off. I was sorry no one called in asking why he has not been indicted yet but they screen those callers out I'm sure.
this is really cutting into the gas station gouging, i mean margins.
refiners are making money hand over fist. crack spread is wide
gasoline should be MUCH lower
for texas take rbob and add 35-40 cents. that puts should be price at 1.50. instead it is 1.7x
Local farm store chain got busted along with Sam's Club for selling below state minimums.
Funny thing is, prior to that store being built and anyone being able to get gas cheaper, other gas/convenience store chain has a major corner on the market.
They get their market share and surprisingly gas gets more expensive over time vs state average...farm store comes in and let's anyone buy it cheap (don't need membership) and miracle of miracles, they get nailed when "local stores file a complaint".
Who would have thunk allowing the consumer to buy cheap gas was illegal. Market based economy, that's what we've got for sure.
finally some fucking green shoots. with employment this strong y aren't we raising interest rates?
Well, if we can see another 30,000 to 40,000 fired, the BLS can probably get the unemployemnt rate down to 3%.
It's pardoxical!
That's a lot more higher paying jobs thrown on the scrap heap. This so much reminds me of 2008. It's scary. But when the music is still playing we have no choice but to dance. My legs are numb !!!!
In 5 years we will have a shortage of oil and the price will be over $100 again....same story .....I lived in Denver in the 80s...when Canada oil companies built our skyline....all of those buildings went back to the bank...as oil tanked
The Fed got it wrong on "good" oil price drops?
I guess none knew a thing about Houston in the early 80's. Were'nt born yet?
Its okay. These engineers can apply their knowledge in the US manufacurting sector...oh wait.
This is exactly why, as an environmental engineer, I chose a career in Water/Wasterwater Infrastructure
... Blue Gold is all Califonians will care about in 20 years.
edit:
Good thing I have just bought 50 Power Ball tickets (I had no idea it was only a $2 punt) and I am going to win at least $100 million. As soon as I do, we are going to have a massive ZH party somewhere. The haters only get to order from kids menu.
Meanwhile unemployment continues to drop and people on food stamps at 45 Million.
$20 oil is coming once Iran comes back on line and sanctions are removed.
What sanctions? Marc Rich was pardoned by Clinton just before they cleaned out the WH. He's picking up on consultancy for Erdogan.
Does this mean the child sacrifices by the inbred aristocracy didn't pay off?
BP CEO Tony Hayward sold 30% of his shares in BP a month before the Gulf "oil spill." What with the blow up of the Texas City refinery and the Gulf Oil Spill, Tony Hayward still got his million dollar bonuses.
And after jumping ship he ended up where? Oh, that's right. Glencore International, overseeing environment and safety.
But wait! There's more!!!
On 8 September 2011, Hayward's venture firm, Vallares, merged with the Turkish oil firm (Rothschild-owned ISIS black-market-oil buying) Genel Energy to create a $4.5 billion company with operations in northern Iraq.
Let's get these turncoats off our shores. Quit worrying about Baltimore. Get the real culprits!
NFP has been badly understating these layoffs...plus Dupont has already let that many go. Wilmington is a disaster...experimental station will be a ghost town shortly.
I will win $100 million in the powerball lottery. I am having my celebration party in Houston. Who wants to come?
Can we have it on the lawn of 100 Westlake Park Blvd?
A lot of people there I want to tell to eat shit.