Oil bust inevitable

ryanator

Mathematical
Members
Baker Hughes lays off 117 in ND

Looks like one of the biggest layoffs from one company in the southwest ND area. This is one of the first of it's kind since any employer is required to send a letter to officials when laying off 100 or more.

The Work Adjustment and Retraining Notification Act requires companies that plan to terminate more than 100 employees alert area and state workforce services, as well as the mayor of the city where the layoffs occur. Baker Hughes did not release how many workers it still employs at its Dickinson office.

Johnson said, in his 15 years as the city commission’s president, he cannot remember receiving a similar letter.

“Historically, at least for quite a while, there haven’t been any layoffs of that magnitude,†he said.
It looks like the dominoes are falling. My friend's dad who works at a local steel manufacturing plant says he's worried about sizable layoffs there soon since they do most of their work servicing the oil companies. Since most of this areas large growth came from the oil industry, each oil company works in conjunction mostly serving other oil field companies; when one goes, others will have to also.

Coming cutbacks

Russ Schank, president of the American Petroleum Institute’s Dickinson Chapter, said he hears many rumors about cutbacks at different companies in the area. Some, he said, are quickly dismissed. Others turn out to be true.

“It’s pretty much across the board,†he said. “I won’t mention anything specific, but generally speaking, that’s what’s going on. It’s pretty obvious and it’s probably going to continue through the winter.â€
 

nodle

Cheesemonger
Administrator
Ya I honestly never see it coming back either. First off the town is plenty prepared if it does with homes and apartments. Not like before. Second there are newer ways to frack and drill now which needs less men to operate. Plus the Arctic is the hot new drilling place anyways.
 

WayneKerr

Mad scientist
Members
I'm not sure I follow. Anytime there is a minor fault at the refineries, the price of oil goes up, because the refineries can't keep up. Are the hedge fund managers and other investors that drove the price of gas at the pump up all of the sudden turn into nationalists?

Are we going to drill baby drill to make american great again?

Or is this about the federal reserve factiod I saw the other day. I don't think we have enough to outlast the Saudis or OPEC.

Anyway, I don't think I picked up on the message. Anyone care to break it down?
 

nodle

Cheesemonger
Administrator
I just read it as instead of buying oil from overseas, why don't we become the powerhouse sellers and sell to other countries and profit. Why should we always be the buyer, why can't we be the sellers? We have the resources.
 

WayneKerr

Mad scientist
Members
Just like telco, Oil has a "sisters story." ^Condensed^by^wikipedia

Here:


ConocoPhillips Company (United States)

Conoco is 8th of the big 6.

As a group, the supermajors control around 6% of global oil and gas reserves. Conversely, 88% of global oil and gas reserves are controlled by the OPECcartel and state-owned oil companies, primarily located in the Middle East.

Does anyone remember Terror Free Oil? Tessoro & Sinclair are really the only independent Oil companies I know about. Fun fact: I went to terrorfreeoil.org. My browser and antivirus picked up a scan. I'm on a list.

 

ryanator

Mathematical
Members
The reality is most who came here will go back since most don't like it here. It's just the fact of it, sure you have people who see the good quality of a quieter town to raise a family, but even most of those will leave to greener areas. When the oil and money goes, so will all that who came for it.
 

LK

It burns when I pee
Members
Our prices at the pump have not decreased at all despite the extended lull in oil prices.
 

LK

It burns when I pee
Members
Our prices here never went down - but I did notice they are up $.10 from yesterday. Sweet mercy.
 

Ludacris

Fluxoid's Doctor
Members
Maybe this has been brought up, I'm just to lazy to read every reply, but isn't oil suppose to be a non-renewable energy source. When I was in school the thought was that oil was the result of millions of years of decaying organic matter given the right conditions. If that theory is true, then there has to be an end to the Saudi's wells that they are pumping so much. If they know their well is decreasing, they're going to stop pumping it at these prices.......some day. The world will forever be using oil. Fueling cars is just one of the hundreds of uses for oil.
 

WayneKerr

Mad scientist
Members
Maybe this has been brought up, I'm just to lazy to read every reply, but isn't oil suppose to be a non-renewable energy source. When I was in school the thought was that oil was the result of millions of years of decaying organic matter given the right conditions. If that theory is true, then there has to be an end to the Saudi's wells that they are pumping so much. If they know their well is decreasing, they're going to stop pumping it at these prices.......some day. The world will forever be using oil. Fueling cars is just one of the hundreds of uses for oil.

It has been brought up before, though I am not sure if in this thread. Peak oil.

I think its telling that are using fracing techniques to get at the oil now. Surely all of the easy stuff is gone now. I think its also telling that companies like Shell are withdrawing from the arctic. I am not sure if its telling us that its not safe, environmentally, or that it is not safe because of Russian activity. *shrug* Maybe its even due to TPP.

The one with the most oil at the end wins.
 

nodle

Cheesemonger
Administrator
So I have been very busy the last week or so. I had Jury duty the last couple of days also. Some interesting things to note. I saw they are shutting down the new coal plant that they just opened in 2010 located in a small town next to us. Also talking to some people on the Jury that are farmers I am surprised on how many farms are failing around here. One guy works for the big grainery here and he was saying so many farmers are in debt around here that they are even bringing in their firearms to trade in to pay. We also had two farmers and they are saying all the types of grain from wheat to sunflowers to other stuff I haven't heard isn't worth anything anymore.
 
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