Halliburton Closure in El Reno

[SlugSlinger]

If you think about cash flow, when these layoffs come around, there is more expense related to the separation in the current quarter than if the company just paid the wages and benefits. What they are trying to do is reduce the future expense and the company can proclaim they have cut cost and can show future growth in the company. Technically, it’s not growth, but the expense reductions usually go directly to the bottom line on the income statement and it looks like there is income growth. This presentation is somewhat deceiving to the normal person and investor.

The energy companies and still trying find the balance of expense and energy prices. There will be a lot more consolidation before this industry becomes anywhere near stable.

 

[Snattlerake]

https://www.duncanbanner.com/news/d...cle_747b8fba-16f5-11ea-80b3-73add10cc117.html

Duncan Halliburton layoffs confirmed: Oilfield services camp from El Reno returning to Duncan as Technology, Manufacturing employees in city let go

 

[Hobbes]

One of my neighbors just got laid off at NOV and looking for work.
And I read that Chesapeake issued a warning to investors recently.

Is $59 oil not profitable anymore?
It used to be.

Did these companies borrow too much because interest rates are so low?
What's going on with the oil bidness these days?

 

[Snattlerake]

Is it production that is the big loser? Every time I drive to Woodward from OKC I see at least 15 rigs. There were a bunch west of Okarche to Watonga. Have these been completed? Dry holes or are they NG wells?

 

[Oklahomabassin]

Is it production that is the big loser? Every time I drive to Woodward from OKC I see at least 15 rigs. There were a bunch west of Okarche to Watonga. Have these been completed? Dry holes or are they NG wells?

Most of those wells are completed. You won't see nearly as many rigs in that area today. Very few dry holes are drilled these days. Cost to drill and complete wells today can run 7-12 million. Lot of companies are publicly traded and often means operations are controlled by investors.

 

[rlongnt]

One of my neighbors just got laid off at NOV and looking for work.
And I read that Chesapeake issued a warning to investors recently.

Is $59 oil not profitable anymore?
It used to be.

Did these companies borrow too much because interest rates are so low?
What's going on with the oil bidness these days?

If $59 oil isn't profitable you are seriously doing it wrong!

 

[Fredkrueger100]

I don’t know who owns it all but I work in oil center ( literally the name of the town) once a month. There are so many rigs and holding tanks there I can’t even believe it. It’s north of ada a little ways. There is also a ton around the Wewoka area. Somebody is making a killing around here. Truly though my heart really hurts for these folks. I can’t even imagine losing my job. Or my wife. I bet these folks would disagree with the people that say “money won’t make you happy “. I bet it would them. I have prayed that they can find a good job to bounce back as quickly as they can. And as for Chesapeake, my wife had a lady apply for a job and she interviewed this lady and she had been with them for over 10 years and was let go. And she made a lot. She was an older lady too. This was just a couple years ago. Give it time and they will be laying a ton off too. Ain’t no way I would ever get into the oil and gas industry. Even though I’m in the NG industry. If my company folds Oklahoma, Kansas and some parts of Texas are screwed.

 

[TwoForFlinching]

Is $59 oil not profitable anymore?
It used to be.

Did these companies borrow too much because interest rates are so low?
What's going on with the oil bidness these days?

Profit is they key, or rather the margin of profit. That's what investors care about. They'll take a hit in production and workforce to protect the highest margin possible. They could keep employment up, which keeps production up, but at a lower margin of profit. They'll still make money, but that net percentage of earning takes a hit. Classic wall street 'pinching pennies, losing dollars.'

This is why every big company lays off even in good times. Short term burst of 'profit' to honeypot new investment. Ultimately, it'll lead to a change in leadership.

It's not enough for companies to make money... they have to make a pile of money at any cost. The ugly reality of capitalism.

 

[Snattlerake]

Makes sense to me. Also fuels Bernie's group of airheads.

 

[okietool]

A lot of oilfield hands just aren't interested in relocating, if you look at companies like Halliburton and Schlumberger the have "camps" all over the world.
Oklahoma is mostly gas without a lot of liquids, that's not the most profitable right now.
Wells that take 25-30 days in Oklahoma are drilled in 9 in Eddy Co. NM. And they are liquids rich to the tune of around 100 barrels/per hour. Costs are about the same overall. Plus crude is easier to store than natural gas.
Service companies (like Halliburton) tailor their workforce to the needs at the moment, but, so does every other industry.
Retailers don't keep a Christmas sales staff all the time, a lot farmers hire extra help to harvest wheat, milo, etc.
For everyone laid off in El Reno there are still thousands working in other locations.