ckf Posted August 4, 2016 Share Posted August 4, 2016 Cheap oil has fueled a massive wave of job cuts that may not be over yet. Since oil prices began to fall in mid-2014, cheap crude has been blamed for 195,000 job cuts in the U.S., according to a report published on Thursday by outplacement firm Challenger, Gray & Christmas. It's an enormous toll that is especially painful because these tend to be well-paying jobs. The average pay in the oil and gas industry is 84% higher than the national average, according to Goldman Sachs. The cuts have occurred at a time when many other corners of the American economy have been adding jobs. About 95,000 positions were eliminated by energy companies in 2016 alone, according to Challenger. Most of those job cuts occurred earlier this year, as oil prices crashed to a 13-year low of $26 a barrel. But Challenger noted that there was a "resurgence" of energy-sector job cuts in July, when layoffs spiked by 796% to 17,725. Oil prices have rebounded from extreme low levels, but they're losing ground again in recent weeks, briefly slipping back below $40 a barrel this week. Expect more energy job losses to be reflected in Friday's government jobs report for July. Few oil companies have been spared the pink slips. Everyone from diversified oil companies like Chevron (CVX), to oil services firms like Schlumberger (SLB) and Baker Hughes (BHI) have announced mass layoffs. Halliburton (HAL) alone has slashed more than 30,000 jobs, including 5,000 during the second quarter of this year. "The industry has been hit harder than we've seen in the 15 years we've been in the business, much harder than '08 downturn," Jeff Bush, president of oil and gas job recruiter CSI Recruiting, recently told CNNMoney. And then there are the thousands of layoffs by non-energy companies that provide equipment used to drill for oil like Caterpillar (CAT) and Joy Global. (JOY) The good news for laid-off oil workers is that some think the pendulum may have swung too hard, creating a talent shortage when drilling activity eventually rebounds. Goldman Sachs predicted the oil and gas needs to hire between 80,000 and 100,000 people by the end of 2018 just to keep up. The oil industry may need to pay up to lure workers back to the oil patch. "Not only have laid off workers relocated to other areas for new jobs but, just as in many other industries, a large portion of the workforce is reaching retirement age," said John Challenger, CEO of Challenger, Gray & Christmas Quote Link to comment Share on other sites More sharing options...
Since oil prices began to fall in mid-2014, cheap crude has been blamed for 195,000 job cuts in the U.S., according to a report published on Thursday by outplacement firm Challenger, Gray & Christmas. It's an enormous toll that is especially painful because these tend to be well-paying jobs. The average pay in the oil and gas industry is 84% higher than the national average, according to Goldman Sachs. The cuts have occurred at a time when many other corners of the American economy have been adding jobs. About 95,000 positions were eliminated by energy companies in 2016 alone, according to Challenger. Most of those job cuts occurred earlier this year, as oil prices crashed to a 13-year low of $26 a barrel. But Challenger noted that there was a "resurgence" of energy-sector job cuts in July, when layoffs spiked by 796% to 17,725. Oil prices have rebounded from extreme low levels, but they're losing ground again in recent weeks, briefly slipping back below $40 a barrel this week. Expect more energy job losses to be reflected in Friday's government jobs report for July. Few oil companies have been spared the pink slips. Everyone from diversified oil companies like Chevron (CVX), to oil services firms like Schlumberger (SLB) and Baker Hughes (BHI) have announced mass layoffs. Halliburton (HAL) alone has slashed more than 30,000 jobs, including 5,000 during the second quarter of this year. "The industry has been hit harder than we've seen in the 15 years we've been in the business, much harder than '08 downturn," Jeff Bush, president of oil and gas job recruiter CSI Recruiting, recently told CNNMoney. And then there are the thousands of layoffs by non-energy companies that provide equipment used to drill for oil like Caterpillar (CAT) and Joy Global. (JOY) The good news for laid-off oil workers is that some think the pendulum may have swung too hard, creating a talent shortage when drilling activity eventually rebounds. Goldman Sachs predicted the oil and gas needs to hire between 80,000 and 100,000 people by the end of 2018 just to keep up. The oil industry may need to pay up to lure workers back to the oil patch. "Not only have laid off workers relocated to other areas for new jobs but, just as in many other industries, a large portion of the workforce is reaching retirement age," said John Challenger, CEO of Challenger, Gray & Christmas
01mxz800 Posted August 4, 2016 Share Posted August 4, 2016 the low oil price has created a boom in the road and infrastructure field this has been my busiest season in years, have already put 1.5 mil. gallons through my trailer and season only half over hear Quote Link to comment Share on other sites More sharing options...
GGNHL Posted August 4, 2016 Share Posted August 4, 2016 Hurts some, helps others. Maine's biomass industry would be better off with $80 a barrel oil or diesel prices around $3.00 a gallon. Quote Link to comment Share on other sites More sharing options...
racinfarmer Posted August 4, 2016 Share Posted August 4, 2016 3 minutes ago, GGNHL said: Hurts some, helps others. Maine's biomass industry would be better off with $80 a barrel oil or diesel prices around $3.00 a gallon. Ethanol would be too. Thankfully, cheap corn is helping them along. I know a lot of the "oil field" cars aren't racing much, if at all, right now around the dirt tracks. Car counts are down 25+ cars at some of the big races. Quote Link to comment Share on other sites More sharing options...
01mxz800 Posted August 4, 2016 Share Posted August 4, 2016 the displaced workers could easily find employment in the road and infrastructure rebuilding trades been busy as hell with limited workers I am running my 70 hour legal logs and could run 24/7 if I could legally do it, I currently run 3 loads a day for roughly 14hr day Quote Link to comment Share on other sites More sharing options...
racer254 Posted August 4, 2016 Share Posted August 4, 2016 Cheap energy is good for the middle class, don't let these bias stories fool anyone. 2 Quote Link to comment Share on other sites More sharing options...
Ebsell Posted August 4, 2016 Share Posted August 4, 2016 I still say they were temporary jobs anyways. Over inflated oil prices created those jobs in the first place. It only made sense that when prices and demand fell they would disappear. Not like it's the first time this has happened Quote Link to comment Share on other sites More sharing options...
Anler Posted August 4, 2016 Share Posted August 4, 2016 Oil jobs. But it has stimulated everything else where people and businesses spent the money they saved on petrol products elsewhere. Quote Link to comment Share on other sites More sharing options...
1jkw Posted August 4, 2016 Share Posted August 4, 2016 Our area is doing very well, many people are just digging out of debt from when heating oil was 3.75 a gallon or more and gas was 4.00 a gallon or more. Quote Link to comment Share on other sites More sharing options...
racer254 Posted August 4, 2016 Share Posted August 4, 2016 37 minutes ago, Anler said: Oil jobs. But it has stimulated everything else where people and businesses spent the money they saved on petrol products elsewhere. Bingo. Quote Link to comment Share on other sites More sharing options...
Zambroski Posted August 4, 2016 Share Posted August 4, 2016 Just now, racer254 said: Bingo. And Yahtzee! Connect four? 1 Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 yet the stocks drop over cheap oil every time. Quote Link to comment Share on other sites More sharing options...
1jkw Posted August 5, 2016 Share Posted August 5, 2016 16 minutes ago, Capt.Storm said: yet the stocks drop over cheap oil every time. Only when they first drop, then the market corrects, the market is way up still. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 1 minute ago, 1jkw said: Only when they first drop, then the market corrects, the market is way up still. Hell the dow was 18000 a year ago...but yes way up from 09...but in this last year it has been as low as 16000...oh well. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 (edited) pretty neat interactive charts here. http://www.macrotrends.net/2481/stock-market-performance-by-president Seems the market did best with Billy being prez and then FDR. Edited August 5, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
1jkw Posted August 5, 2016 Share Posted August 5, 2016 6 minutes ago, Capt.Storm said: pretty neat interactive charts here. http://www.macrotrends.net/2481/stock-market-performance-by-president Seems the market did best with Billy being prez and then FDR. The DOW was up 32 today I think it closed at 18,035 pretty good considering the price of oil. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 3 minutes ago, 1jkw said: The DOW was up 32 today I think it closed at 18,035 pretty good considering the price of oil. Yeah it was dropping for a week or more..lost just a little today..it was up at one point like you said. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 (edited) Mobile was up 20% for the year just week or so ago...around 10%now. Edited August 5, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
1jkw Posted August 5, 2016 Share Posted August 5, 2016 1 minute ago, Capt.Storm said: Yeah it was dropping for a week or more..lost just a little today..it was up at one point like you said. 18,000 plus is pretty darn good with oil being in the 40's. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 1 minute ago, 1jkw said: 18,000 plus is pretty darn good with oil being in the 40's. Yeah..if oil does not drop much more..should be ok...but it is hurting the producers for the short term anyhow. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 Don't seem like we are going to run out of oil anytime soon though. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 Now the dow is up over 150 today on news of job gains...you just never know from day to day. Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 (edited) oil just slightly down so far. DOW JONES INDU AVERAGE INDEX (Dow Jones Global Indexes:INDU) Add to Watch List Set Alert 18,522.99 Real-Time Quote As of 3:22pm ET +170.94 / +0.93% Today’s Change 15,370 TODAY|||52-Week Range 18,622 +6.32% Year-to-Date Company Price Change % Change P/E Volume YTD change MMM 3M 178.45 +0.64 +0.36% 22.9 53.8K +18.46% AXP American Express 65.46 +1.52 +2.38% 11.5 294.4K -5.88% AAPL Apple 107.50 +1.63 +1.54% 12.5 2.6M +2.13% BA Boeing 131.71 +0.50 +0.38% 24.0 101.1K -8.91% CAT Caterpillar 82.42 +0.65 +0.79% 42.8 158.0K +21.28% CVX Chevron 100.36 -0.03 -0.03% 145.4 450.5K +11.56% CSCO Cisco 31.01 +0.205 +0.67% 15.3 1.1M +14.18% KO Coca-Cola 43.46 -0.055 -0.13% 25.0 459.7K +1.15% DIS Disney 95.89 +0.73 +0.77% 17.6 264.6K -8.75% DD E I du Pont de Nemours and Co 69.18 +0.33 +0.48% 28.0 59.3K +3.87% XOM Exxon Mobil 87.46 -0.025 -0.03% 28.1 532.3K +12.19% GE General Electric 31.27 +0.095 +0.30% 37.2 820.6K +0.37% GS Goldman Sachs 162.00 +3.95 +2.50% 18.2 144.1K -10.11% HD Home Depot 136.94 +0.88 +0.65% 24.1 133.9K +3.54% IBM IBM 163.16 +1.61 +1.00% 13.3 152.0K +18.56% Edited August 5, 2016 by Capt.Storm Quote Link to comment Share on other sites More sharing options...
Capt.Storm Posted August 5, 2016 Share Posted August 5, 2016 other half of the dow.. Company Price Change % Change P/E Volume YTD change INTC Intel 35.01 +0.43 +1.24% 17.0 1.1M +1.63% JNJ Johnson & Johnson 123.94 +0.08 +0.06% 22.6 307.6K +20.67% JPM JPMorgan Chase 66.29 +1.73 +2.68% 11.2 859.8K +0.39% MCD McDonald's 119.10 +0.80 +0.68% 23.0 110.9K +0.82% MRK Merck 63.31 +5.47 +9.47% 38.7 4.1M +19.86% MSFT Microsoft 57.97 +0.58 +1.01% 27.6 1.7M +4.49% NKE Nike 55.86 +1.07 +1.95% 25.8 349.1K -10.62% PFE Pfizer 35.45 +0.30 +0.87% 29.1 1.4M +9.82% PG Procter & Gamble 85.65 -0.40 -0.46% 27.0 405.1K +7.87% TRV Travelers Companies Inc 118.45 +0.57 +0.48% 11.4 49.0K +4.96% UTX United Technologies 107.62 +1.26 +1.18% 23.9 172.3K +12.03% UNH UnitedHealth 142.71 0.00 0.00% 23.0 79.7K +21.33% VZ Verizon 53.52 -0.41 -0.76% 15.1 836.3K +15.79% V Visa 80.07 +0.59 +0.74% 34.6 292.7K +3.25% WMT Wal-Mart 73.66 +0.36 +0.49% 16.3 328.2K +20.18% Quote Link to comment Share on other sites More sharing options...
Mileage Psycho Posted August 5, 2016 Share Posted August 5, 2016 22 hours ago, racer254 said: Cheap energy is good for the middle class, don't let these bias stories fool anyone. 22 hours ago, Anler said: Oil jobs. But it has stimulated everything else where people and businesses spent the money they saved on petrol products elsewhere. Good posts Quote Link to comment Share on other sites More sharing options...
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