How many people have lost their job at big blue machine during April and May... 20,000 and counting?
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You clearly have no idea about the global economy. Read today's news about oil you mo–n.
I think one of the key differences in layoffs and capex budgets comparing '14/'15 downturn to now is the difference in price. Oil was >$110/bbl and only going up which meant big spending and major additions to headcount in gearing up for projects.
When this fell to ~$25-$35/bbl we were very bloated and with all of those major projects falling through it meant huge headcount reduction - not to mention the acquisitions of that time.
On this occasion, SLB and other orgs were particularly lean from the last downturn and had normalized operating at ~$50/bbl, so I think layoff totals this time round will be less.
I also don't envisage this being as long a recovery as the last one due to the significant scale of production cuts, laying off too many engineers now would result in a skills shortage as and when demand recovers - particularly as there will be a lot of projects to get production back online to meet demand.
BP just announced a ten thousand cut. Slb is not even close to be completed with staff reductions. Real world folks real world.
Oil And Gas Rig Count Falls For Ninth Straight Week
By Julianne Geiger - May 29, 2020, 12:23 PM CDT
Baker Hughes reported on Friday that the number of oil and gas rigs in the US fell again this week by 17, falling to 301, with the total oil and gas rigs sitting at 683 fewer than this time last year—a near 70% drop off in a single year.
The number of oil rigs decreased for the week by 15 rigs, according to Baker Hughes data, bringing the total to 222—compared to 800 active rigs in play this time last year.
The total number of active gas rigs in the United States fell by 2 to 77 according to the report. This compares to 184 rigs a year ago.
The significant fall in the rig count over the last couple of months is also reflected in the steady decline of EIA’s estimate for oil production in the United States, which fell again this week to 11.4 million barrels of oil per day on average for week ending May 22, which is 1.7 million bpd off the all-time high and 100,000 bpd lower than the week prior. It is the eighth straight weekly production decline.
Canada’s overall rig count decreased by 1 rigs this week, to 20 rigs. Oil and gas rigs in Canada are now down 65 year on year.
At 12:23 pm, WTI was trading down 0.86% at $33.42. Although down on the day this is nearly $0.50 up week over week. The Brent benchmark was trading down 1.19% at $34.87 on the day and flat week over week. The price dip on Friday is likely the result of increased China vs. United States tensions over China’s role in both the coronavirus pandemic and its new security plan for Hong Kong. By Julianne Geiger for Oilprice.com
Last time, Oil down to Positive $26.21, SLB cut 70K employees to save the company.
This time, Oil down to Negative $37.63. Only cut 14K. Maybe the oil prices will rebound to $60 for the next quarter. Otherwise...
14,000 YTD
Me!