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46 bux on the stuff not a bad deal at all!
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Half of history is hiding the past.Comment
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Weir spm.Originally posted by cobrajet69 View Post
Theyve gotfrac pumps stacked up now.DE OPPRESSO LIBER
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Info from the SLB call this morning:
The 9,000 Jobs Schlumberger Cut Are Just A Start - Takeaways From Management Discussion
In the second to last paragraph of its lengthy earnings press release Thursday, Schlumberger (SLB) disclosed 9,000 job cuts with little explanation or clarification (our initial take can be seen here).
Today, we received some insight on the cuts as the company held its quarterly management discussion with investors. The most important takeaway for folks in the oilfield is that this massive workforce reduction at SLB is likely only the beginning.
5 Things We Learned About The Jobs Cuts This Morning
The 9,000 cuts are just for the first quarter slowdown.
SLB is tightening their reaction time on operating cost and business decisions to a quarterly basis from an annual or bi-annual basis previously. SLB is now in constant contact with its customers. What SLB learns about its customers' plans and outlook quarter to quarter will dictate their decisions this year. SLB will re-calibrate the organization on a quarterly basis to match the outlook.
More workforce reductions are likely this year.
While SLB believes the 9,000 cuts are a reasonable starting point given their 1Q outlook, management said: "If activity is lower, we have the ability to quickly cut more." We believe 2Q will be more challenging than 1Q, and expect SLB will be forced to make several more rounds of layoffs this year.
The incremental workforce reductions seem to have come largely in the US onshore business.
While SLB did not explicitly break down the jobs lost into international vs. US, management said: "The impact on NAM land will be significantly more dramatic than what we see in the rest of the world." Because they are re-calibrating their business based on their 1Q outlook, this suggests the majority of the incremental jobs cut were US positions. SLB's seismic business shouldered a great portion of the reductions, as previously reported on Oilpro. The seismic scale back is a direct result of the coming industry cutback in exploration.
SLB will save over $300mm this year because of the reductions.
SLB took a $296mm charge on the workforce reductions. On the call, management said salary cost savings would net them more than this amount during 2015.
A double standard - SLB raises dividend while axing worforce at the same time?
Business is business, and the management teams of public companies work for their investors not their employees. We understand that. However, SLB raised their industry leading dividend by 25% this quarter even as they cut workers on a scale not seen for many years. The optics of this strategy are negative and should be taken seriously. This is bad for company morale, and it could end up hurting the company in the long run even though it is good for the share price right now (seen as a vote of confidence by investors). Specifically, SLB raised their dividend to a total of $2 per share yesterday. That means they will pay out cash to shareholders to the tune of about $2.5 billion this year. SLB's massive dividend is enough to keep over 15,000 employees on the payroll at $100,000 per year. Again, we don't expect SLB to wipe out their dividend to pay workers that aren't needed in the new oil price paradigm. That is not how business works. But the juxtaposition of a dividend raise the same day a massive workforce reduction is announced will surely raise some eyebrowsComment
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The quarterly job reports will magically bring lower unemployment numbers.Comment
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Explain like I'm 5....
How is it we are dependent on foreign oil, if when OPEC decides to overproduce, it forces us to stack up and slow down our production? It would seem, we could completely cut off buying any foreign oil and just get our own and be fine.
I have also never understood, how is it that overabundance of oil from OPEC affects our natural gas business? These countries don't import natural gas do they?Comment
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"If I asked people what they wanted, they would have said faster horses." - Henry FordComment
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I hope you aren't doing work for Repsol. They just abandoned all of their work there.Originally posted by 93LXHORSE View PostComment
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People will buy what is cheapest. If we bought only domestic, it would raise prices to consumers because of the cost to extract.Originally posted by Frank View Post
Furthermore, the us is also responsible fo this oversupply. Just look at how much we've ramped up production over recent years.
But I would love to say we all have to buy domestic...it would suit my job incredibly well.Comment
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We can't produce more than we consume.Originally posted by Frank View PostOriginally posted by BradMOriginally posted by LeahComment
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Here's the thing though. Oil is super high and they get fat. Meanwhile, other industries that depend on more disposable income decline. People eat out less, so restaurant businesses go down. People like Brent who sell restaurant equipment see a slow down. Furniture, housing starts, etc. go down. Transportation costs go up, so goods cost more at the store. It goes on and on.Originally posted by Sean88gt View Post
The problem is when O&G is either at the bottom of the trough or at the peak. That's when one side or the other suffers. We need it to stabilize somewhere with a happy median where O&G can make a good profit and support many jobs and yet consumers can have a little extra disposable income and the perception of having much more.Comment
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When is Obama going to step in and raise the price of oil back to where it needs to be?Comment
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10 more minutes...Comment
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