If I'm not mistaken, we've peaked. It'll be maybe a few more weeks before the whole country is back to work. So why wait and cut people just in time when things are starting to look better?
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Even if renewables “look” like a better business model, the momentum of “dirt cheap” oil will be around for a good while.
Big oil guys don’t want change!
Question: What would create the change mechanism to move and embrace renewables (electrics)?
Also, with renewables, specifically rare earths used in high efficiency electric vehicles, these are mostly from China, not exactly a friend of the US or for that matter most of the world at present.
Even if there was no Covid, layoffs would still be happening because of the price crash and oversupply issues. Covid could magically disappear tomorrow and O&G would still be in trouble.
Oil was tanking well before Covid. Look how clean the air is since the shutdown, you can see for miles and actually walk outside and breathe. Trees are green, bees are buzzing and birds are chirping. Air polluting oil is done, God bless mother earth. Hell the Pope told you this back in 2015 already.
The person that posted this question, clearly doesn’t understand current market conditions or the industry all together. Maybe they work in accounts payable or some kind of data entry capacity.
The answer is, because the oil patch is different. The oil price and that industry is in for a LONG term drought. There will be much thinning and reductions to come. More facility closings and lay-offs to come and the majority of those lay-offs will never rehire as the industry needs to shrink to survive.
Yeah I think an oil price of -$37.00 per barrel might be a slight warning sign that your business is going down the toilet fast. When producers shut down production because there's no longer any more space to store the product. This industry is ripe for a complete meltdown where small inventors and innovator can re-create it from bottom up. No multi-billion dollar mega company is capable of adjusting to a complete shut down of it's product. None of this is Covid-19 related. The only investors in NOV at this point are the options traders betting on the stock price tanking. $2B in debt and $1B in cash still means $1B in debt. Add a net loss for Q1202 at over $2B. This company is toast!
40% of the drilling rigs have been reduced. This is why NOV must do layoffs! If they can not feed the beast it will starve and so will the workers!
Anyone have an update?
When will the shut down start?