Oilfield Layoffs

[30BulletHoles]

We have had three rounds of layoffs since December 1st. Nomac has been stacking rigs on our yard for the past two weeks. Archer in Union City laid off 75 yesterday and I heard GoFrac out of Ft Worth shut down all their yards and closed their corporate office today.

Yea Archer wireline in Woodward closed their doors about two weeks ago.

 

[DeerAssassin]

Got laid off last Friday from Nomac. Was a Motorman.

 

[rhodesbe]

I'm no economist, but I don't think current oil prices are the only force at play here. Speculation is way, way negative. Also the adage 'never let a good war go to waste' is coming into play here, and there is a general trim down of excess capacity happening under the guise of low prices being the cause. In other words: the bubble has popped.

I hope I'm 100% wrong.

 

[nofearfactor]

Osage county is pretty much shut down. Indefinitely. And not just because of the HPP. New EPA regulations and a lawsuit.

 

[SlugSlinger]

Refined product pricing are rising due to the largest refinery Union strike since the 1980s. This only impacts oklahoma, because the refineries based here can sell to the markets where the refineries are slowing at higher prices. It reduces the supply and raises prices here.
Oh, and oil prices are up a little.

Diesel is up 50 cents a gallon in the last week. Oil prices have been climbing albeit slowly. Somebody is making money. I surmise that layoffs at the lower levels are so that somebody will still be able to take their family to Europe for vacation this summer.

 

[vvvvvvv]

I'm no economist, but I don't think current oil prices are the only force at play here. Speculation is way, way negative. Also the adage 'never let a good war go to waste' is coming into play here, and there is a general trim down of excess capacity happening under the guise of low prices being the cause. In other words: the bubble has popped.

I hope I'm 100% wrong.

Hedge funds are already buying back in.

 

[Wheel Gun]

Hedge funds are already buying back in.

Yeah. We saw lots of activity yesterday. The longs have started getting back into energy as of this week. I hope the trend continues.

 

[SlugSlinger]

The slight rally in oil prices is what they call a dead cat bounce in the investment world. It's back below $50 at $48.88 or down (7.9%) today.

US Crude inventory jumped 6.3 million barrels to 413, the highest since recording began in 1982.

We are not through the woods yet.

 

[Biggsly]

Nabors Drilling started laying off.

 

[vvvvvvv]

A "dead cat bounce" tends to stay within the lines and not exceed the 30-day moving average.