There will be a 25% increase in manufacturing next year, SHTC managers must be crazy ?????

According to the IEA the trend is not positive.

Global upstream oil and gas investments are expected to plummet 24 percent this year, with little signs of improvement for 2017, the International Energy Agency (IEA) said on Wednesday.

This year's dip will come on top of a 25 percent drop in spending in the sector recorded in 2015 with its total of $583 billion, the IEA said in a report.

"The total fall exceeds $300 billion over the two years – an unprecedented occurrence," the report said, adding two consecutive years of reduced upstream oil and gas investment had not been seen for 40 years.

"Furthermore, there are no signs that companies plan to increase their upstream capital spending in 2017," it said.

Barclays does seem a little more optomistic with a 5% increase in spending

Oil and gas companies are poised to increase spending on exploration and production globally by 5% in 2017, while offshore spending may continue to fall next year, based on Barclays’ midyear global spending survey of more than 200 companies.

This survey has been conducted over the last 5 weeks throughout the month of August with most oil companies basing full-year 2016 upstream spending on $50/bbl Brent and $45/bbl West Texas Intermediate.

This midyear update to the Barclay’s Upstream Spending Survey shows global upstream spending declining 22% in 2016, an upward revision from their March estimate of a 27% decline. Spending for 2015 has been revised down slightly to a 26% decrease from 23% previously in January, now reflecting actual reported figures.

SO WHERE THE HELL DO THE MANAGERS IN STONEHOUSE COME AROUND TO THE IDEA THAT THEY WILL SEE A 25% INCREASE IN MANUFACTURING? Producing products for the Upstream or E&P MARKET? Are they crazy? or stupid? or just plain lying?

Coupled with that worry, we have to contend with the fact that any increase in production will go to China. If those guys in Stonehouse sold cars would you buy one?

Comment! It's anonymous!

7 replies (most recent on top)

While transferring work to China may save costs in the short term, it is not a good solution if you look at some of the poor quality Chinese equipment that is supplied to the oilfield. SLB doesn't manufacture everything that goes into its product, they still rely on outside vendors to supply the individual components. Ask yourself why even something as simple as a shackle is banned in the US oilfield when it was manufactured in China.

SHTC is not safe, the management are not being honest about the future of this product centre.

At present they do not want to lose any more staff BUT as more work gets transferred away from Stonehouse the headcount will continue to be reduced.

They are only interested in protecting themselves, they will be transferred away to other jobs within SLB regardless of their efforts or capabilities.

Lower grades will face the same fate as some 200 or more staff already made redundant, this is part of the TRANSFORMATION PLAN.

Wot vent wong

Absolutely spot on!

Schlumberger is not exactly top of the economic forecast class. Whoever they employ as 'economic Metiers' need marching off site pronto as, amongst many other sins, they are singularly unaware of the difference between production and verified sales. They spout this totally inaccurate nonsense to try and stop key staff being snapped up by GE and similar (Schlum want them to leave when schlumberger desires and not the other way round) and to ensure that shareholders, aka investors, do not leg it. The noses of 'top' management make Pinocchios look positively tiny. Welcome to Disneyland or more accurately, Dismaland.

I believe this is part of the Transformation Plan, I remember reading in a SLB that consolidating manufacturing is part of that plan. In this case Tools, Batteries etc will be going to China.

So much for the years of empty promises by our managers stating that SHTC is safe !!!!!!

Cannot see much hope of any increase in production from SHTC during 2017, the slow transition to China of all manufacturing jobs across all product lines will continue, this is the medium to long term plan.

Building C already up for sale, the future does not look good.

Thread regarding Schlumberger Ltd. layoffs

There will be a 25% increase in manufacturing next year, SHTC managers must be crazy ?????

7 replies (most recent on top)

Post a reply