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http://www.bbc.co.uk/news/uk-scotland-north-east-o...
250 Shell, 100 Taqa. Once the oil proce recovers there'll be a recruitment scramble if the past is anything to go by!
250 Shell, 100 Taqa. Once the oil proce recovers there'll be a recruitment scramble if the past is anything to go by!
jshell said:
http://www.bbc.co.uk/news/uk-scotland-north-east-o...
250 Shell, 100 Taqa. Once the oil proce recovers there'll be a recruitment scramble if the past is anything to go by!
Yup, same thing happened 7 years ago when the price fell to around $30/bbl after a high of $145. We're a manufacturing company in the completions and production sector and we're really feeling the pain just now. Pretty much all our major clients have shut up shop and put a stop to all large capex approvals. 250 Shell, 100 Taqa. Once the oil proce recovers there'll be a recruitment scramble if the past is anything to go by!
I work in production, back in January we had a meeting telling us that times were bad and that our biggest customers had requested between a 10-25% cost reduction including current orders. For a few weeks after things looked grim, very little work on the shop floor, an overtime ban and some of the boys were forced onto a 3 shift pattern.
Fast forward a month or so and we can't get the work out quick enough! The floor is packed with work, the shifts have ended and the overtime is a free for all.
Whether or not it's our customers taking advantage of the cheap rates I'm not sure, you never can tell with the oil industry.
Fast forward a month or so and we can't get the work out quick enough! The floor is packed with work, the shifts have ended and the overtime is a free for all.
Whether or not it's our customers taking advantage of the cheap rates I'm not sure, you never can tell with the oil industry.
Aye, Lucas. We saw the begging letters on the Freight Forwarding side too. Hell, if we had a 20% margin to offer as a reduction I'd have been a happy boy!
I guess some were ust throwing those figues around in the hope that somethign would stick! Damn sure if the $/BBL improves that the big boys will be reluctant to accept price increases to support investment in the supply chain.
I guess some were ust throwing those figues around in the hope that somethign would stick! Damn sure if the $/BBL improves that the big boys will be reluctant to accept price increases to support investment in the supply chain.
ALBA MELV said:
Aye, Lucas. We saw the begging letters on the Freight Forwarding side too. Hell, if we had a 20% margin to offer as a reduction I'd have been a happy boy!
I guess some were ust throwing those figues around in the hope that somethign would stick! Damn sure if the $/BBL improves that the big boys will be reluctant to accept price increases to support investment in the supply chain.
2 sides to this though! Suppliers and manufactureres, the larger ones, have been tracking oil price rather than inflation with their prices. The result is that I personally know of 3 HUGE projects that would have been sanctioned if they hadn't been priced out of the stratosphere. The oil majors have a strict cost screening process that they have to adhere to and if the tool says 'no', then the axe falls. The margin is smaller than people woud believe.I guess some were ust throwing those figues around in the hope that somethign would stick! Damn sure if the $/BBL improves that the big boys will be reluctant to accept price increases to support investment in the supply chain.
My perception of the cause of much of that is in the requirements of projects themselves.
A fortune is spent on deliverables which offer questionable value.
Some projects recycle because of the operator's own reps who ask for the Rolls Royce option at every opportunity and need the cost implications proven to them. Like you, I know several projects albeit ones which have scraped through but at higher cost than needed partly because of indecision and partly because they're a guilded lily with functions and features they don't strictly need - like fully automated methanol injection systems used for production start up once every two months rather than a much cheaper manual system just to save an operator a walk to operate valves and start a pump.
The culture became one of adding straws until the camel's back broke then removing the minimum needed to scrape through the sanction process.
A fortune is spent on deliverables which offer questionable value.
Some projects recycle because of the operator's own reps who ask for the Rolls Royce option at every opportunity and need the cost implications proven to them. Like you, I know several projects albeit ones which have scraped through but at higher cost than needed partly because of indecision and partly because they're a guilded lily with functions and features they don't strictly need - like fully automated methanol injection systems used for production start up once every two months rather than a much cheaper manual system just to save an operator a walk to operate valves and start a pump.
The culture became one of adding straws until the camel's back broke then removing the minimum needed to scrape through the sanction process.
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