North Sea oil industry 'close to collapse'
Discussion
DonkeyApple said:
Saudi oil is amongst the cheapest to extract with things like shake oil amongst the most expensive. In the middle you have deep sea then shallow sea like North Sea basin.
Then there are different types of oil, Saudi oil is quite heavy so contains less of the higher another fractions, such as hexane that make up petrol but is great for burning in our power stations of for other core industrial purposes, North Sea oil is light and very rich in hexanes and the other octane fractions that make up our fuel needs.
The cost of US oil is much higher than Moddle East so OPEC can drive the US really hard if it wants to.
Aberdeen will contract as projects get shelved but it is a central hub for much of the globe''s production so there will still be plenty or work and revenue just leaner and just as has happened before.
What is interesting is that off the exchanges oil is trading well under $50 and this suggests there is more to go on the fall of the exchange prices. Our 'house' view is that the fall has gone too far for a quick recovery. That there is no extra storage capacity so propping up the price via central buying isn't an option so high end producers are going to have to fail and s
t down to remove supply from the system.
So in short, prices could go much lower potentially.
In addition, Russia is totally fked. Wheat is up 30% from lows as Russia will not be exporting if the ruble stays so low. And industry is screwed as they cannot buy in resources due to the cost of USD to them and the massive fall in oil dollar revenue isn't going to improve soon.
In short, Russia is on the edge of repeating 1998/9 and it will take banks like Barclays with it as well as Deutsche and others.
Frankly, Aberdeen contracting off oil boom highs is a total irrelevance compared to what the whole of the UK might face again.
One could almost believe that the West may be incentivised to knock out some overseas production?
Tsk. Away with you and your cheery tidings of Yuletide joy!Then there are different types of oil, Saudi oil is quite heavy so contains less of the higher another fractions, such as hexane that make up petrol but is great for burning in our power stations of for other core industrial purposes, North Sea oil is light and very rich in hexanes and the other octane fractions that make up our fuel needs.
The cost of US oil is much higher than Moddle East so OPEC can drive the US really hard if it wants to.
Aberdeen will contract as projects get shelved but it is a central hub for much of the globe''s production so there will still be plenty or work and revenue just leaner and just as has happened before.
What is interesting is that off the exchanges oil is trading well under $50 and this suggests there is more to go on the fall of the exchange prices. Our 'house' view is that the fall has gone too far for a quick recovery. That there is no extra storage capacity so propping up the price via central buying isn't an option so high end producers are going to have to fail and s
t down to remove supply from the system. So in short, prices could go much lower potentially.
In addition, Russia is totally f
ked. Wheat is up 30% from lows as Russia will not be exporting if the ruble stays so low. And industry is screwed as they cannot buy in resources due to the cost of USD to them and the massive fall in oil dollar revenue isn't going to improve soon. In short, Russia is on the edge of repeating 1998/9 and it will take banks like Barclays with it as well as Deutsche and others.
Frankly, Aberdeen contracting off oil boom highs is a total irrelevance compared to what the whole of the UK might face again.
One could almost believe that the West may be incentivised to knock out some overseas production?
RichTT said:
Gandahar said:
I'm sure a lot of Scottish farmers / crofters will feel sorry for them having to live in central heated off shore installations whilst they have the day long smell of wet sheep for only 1/4 the pay 
I've not been on a rig floor yet that's been central heated, apart from perhaps by a flare boom. Try pissing down with rain or -20 with windchill. I suggest educating yourself before assuming that we all sit in some sort of luxury office complex that just happens to be offshore. As mentioned most offshore workers work in an environment far better for most hours of the day compared to some other sectors working in the UK. At more than twice the pay.
Summary, there is always someone worse off than you and people like to complain, even when they are relatively well off.
SteveSteveson said:
Gandahar said:
Like the bankers they get the rewards for the good times and then complain when the bad times are. Even the ex-head of BP admitted they under-invest in the lean periods so it causes problems at later times.
I'm sure a lot of Scottish farmers / crofters will feel sorry for them having to live in central heated off shore installations whilst they have the day long smell of wet sheep for only 1/4 the pay
Have you not heard how much farmers complain whenever wheat prices change (depending on which type of farming)? All businesses do it, small or large, not just banks and oil. Good businesses invest, save and survive, bad ones wither in hard times.I'm sure a lot of Scottish farmers / crofters will feel sorry for them having to live in central heated off shore installations whilst they have the day long smell of wet sheep for only 1/4 the pay
So it grates when we hear bleeding heart stories from the oil sector who cannot do 7 good years and then not put away money for the 7 bad years.
That's how the industry works it seems. No complaining in the bad years when you have got fat in the good.
Some people never get fat years
Edited by Gandahar on Friday 19th December 12:46
Here's the article, it quotes $5-$6 per barrel.
http://www.economist.com/blogs/economist-explains/...
http://www.economist.com/blogs/economist-explains/...
Gandahar said:
SteveSteveson said:
Gandahar said:
Like the bankers they get the rewards for the good times and then complain when the bad times are. Even the ex-head of BP admitted they under-invest in the lean periods so it causes problems at later times.
I'm sure a lot of Scottish farmers / crofters will feel sorry for them having to live in central heated off shore installations whilst they have the day long smell of wet sheep for only 1/4 the pay
Have you not heard how much farmers complain whenever wheat prices change (depending on which type of farming)? All businesses do it, small or large, not just banks and oil. Good businesses invest, save and survive, bad ones wither in hard times.I'm sure a lot of Scottish farmers / crofters will feel sorry for them having to live in central heated off shore installations whilst they have the day long smell of wet sheep for only 1/4 the pay
So it grates when we hear bleeding heart stories from the oil sector who cannot do 7 good years and then not put away money for the 7 bad years.
That's how the industry works it seems. No complaining in the bad years when you have got fat in the good.
Some people never get fat years
Edited by Gandahar on Friday 19th December 12:46
People take things on like houses, cars, wife, kids and they go on holidays, they do said house up.
After all, though these oil workers may earn well, 65k a year is good money in anyone's book but after tax, living expenses and enjoying the now, there wont be thousands to put away each month unless they are single and frugal or just don't spend much. I am the same, I earn quite good money but after everthing is paid there isnt a whole lot left, I put the maximum into my pension and save into a share save scheme but as we are a Oil and Gas company thats fell on its arse !
Basically most live to their means, I have seen the money in Aberdeen, I have been to Calgary and that was an eye opener, some massive Petro Dollar wealth out there, when you happen upon a bar with a Maserati MC12, several Ferraris, Porsches and Lambos outside you know there is some serious money round that way.
What worries me is in that Economist article, "Pessimists fear that when cornered, they may lash out in desperation.", a bit like that kid that when losing at Monopoly just flips the board over and stomps off, Putin doesn't fill me with confidence as a leader, he comes across as a bit of a madman.
J4CKO said:
What worries me is in that Economist article, "Pessimists fear that when cornered, they may lash out in desperation.", a bit like that kid that when losing at Monopoly just flips the board over and stomps off, Putin doesn't fill me with confidence as a leader, he comes across as a bit of a madman.
Indeed, Putin is likely to seek to rally his people via racism and xenophobia. However, look at the date he originally came to power. 1999. He seized control because of the economic collapse of Russia.
Right now, the most scared Russian on the planet is Putin and the most excited Russian is the chap who is planning to stick the knife in him if the economy doesn't recover soon. So Putin may have his work cut out on the domestic front. You can expect the Western press to start running stories about him being replaced if things continue as they are.
I think the money men in Russia will be eyeing up Putin, that's where the real power lies. If Russia goes pop like it did before, bye bye Putin and a more compliant leader will be put in while at the same time talking tough. Hopefully!
I think Putin has overplayed his hand with regard to Ukraine and that's partly the West's fault for being too easy on him. The Russian military top brass know they wouldn't last very long in a conventional war with the West unless they threatened with the nuclear option and nobody wants that. The money men know Russia would collapse in a few days if the West shut them out completely from the financial system. Ultimately the men at the top want to stay rich and enjoy the nice things that the evil capitalist system can provide. Putin had his uses but I think they (but not perhaps the average Russian) see him as a potential liability now. The main worry as I see it is Europe's dependency on Russian energy. This I think will decrease over the next few years so there is only a small time frame for Putin to use this as a lever. If st happens, it'll be soon. If not, normal service will be resumed once Putin is removed. Interesting times.
I think Putin has overplayed his hand with regard to Ukraine and that's partly the West's fault for being too easy on him. The Russian military top brass know they wouldn't last very long in a conventional war with the West unless they threatened with the nuclear option and nobody wants that. The money men know Russia would collapse in a few days if the West shut them out completely from the financial system. Ultimately the men at the top want to stay rich and enjoy the nice things that the evil capitalist system can provide. Putin had his uses but I think they (but not perhaps the average Russian) see him as a potential liability now. The main worry as I see it is Europe's dependency on Russian energy. This I think will decrease over the next few years so there is only a small time frame for Putin to use this as a lever. If s
t happens, it'll be soon. If not, normal service will be resumed once Putin is removed. Interesting times.After_Shock said:
No one wants any form of war with Russia!
Technically the West has been at economic and strategic war for some time with Russia. Syria for example is a proxy for the fight to remove one of Russia's remaining naval bases in the Med and it was this that arguably precipitate the annexation of the Crimea as bringing Ukraine into the EU would have lost them their other naval base.
DonkeyApple said:
I'm just about the only property owner on PH who has for years advocated a halving of residential property values so it isn't 'my' bubble.
I see nothing but ill in the deregulation of debt that has created the cost of living crisis.
Attacking those on the other side however is the act of the foolish and hardly warrants any respect or sympathy. Bitterness is a horrible affliction that curses many of the mindless Britons who are slaves to the media industry and the drivel they spew.
When you have idiots bleating about crofters then you can see how farcical it has become amongst little britons.
There is nothing positive, pleasant of dignified in revelling in others' misfortunes.
Most people look for identifiable bogeymen to blame it all on at the best of times but even more so when they feel their backs are up against the wall, be the target of it bankers, migrants, unionists, whoever it's a predictable trait that really needs to be managed. Intelligent, well educated, often thoughtful people are just as susceptible.I see nothing but ill in the deregulation of debt that has created the cost of living crisis.
Attacking those on the other side however is the act of the foolish and hardly warrants any respect or sympathy. Bitterness is a horrible affliction that curses many of the mindless Britons who are slaves to the media industry and the drivel they spew.
When you have idiots bleating about crofters then you can see how farcical it has become amongst little britons.
There is nothing positive, pleasant of dignified in revelling in others' misfortunes.
DonkeyApple said:
The malice and anger shown by an ever growing number of brain washed, under educated, non entities on PH is depressing. The irony being that while they froth, as instructed to do by their mind controlling media gods over a few people who earn more than them and are part of the two single largest economies of Britain that are part of a system that underwrite their pitiful existence, they are being fed this hatred and bile by the one industry that has never paid full tax.
So to all the angry people out there, just remember that you are angry or envious because you are either a) thick b) lazy c) under educated d) have childhood issues from the dark.
+1So to all the angry people out there, just remember that you are angry or envious because you are either a) thick b) lazy c) under educated d) have childhood issues from the dark.
While I don't partake in it, the rants about bankers and their big bonuses I can understand. They're not helped by the intangible nature of their "product" and the perception that their risk taking is with other peoples' money and is, in any cae, largely underwritten by the government if the s
t hits the fan.However, having a go at the people working onshore and offshore in the O & G industry is very unfair in my opinion. They're working in a hard nosed industry that produces an essential primary resource. You think they're overpaid? Get the necessary training and go and earn your crust that way too then! The prices paid for the petrol and gas resulting from their work is not high because of them - talk to the government about the huge tax slice that makes N Sea production economically touch and go!
[Wanders off disappointed at the PH reaction, muttering darkly......]
hairyben said:
DonkeyApple said:
I'm just about the only property owner on PH who has for years advocated a halving of residential property values so it isn't 'my' bubble.
I see nothing but ill in the deregulation of debt that has created the cost of living crisis.
Attacking those on the other side however is the act of the foolish and hardly warrants any respect or sympathy. Bitterness is a horrible affliction that curses many of the mindless Britons who are slaves to the media industry and the drivel they spew.
When you have idiots bleating about crofters then you can see how farcical it has become amongst little britons.
There is nothing positive, pleasant of dignified in revelling in others' misfortunes.
Most people look for identifiable bogeymen to blame it all on at the best of times but even more so when they feel their backs are up against the wall, be the target of it bankers, migrants, unionists, whoever it's a predictable trait that really needs to be managed. Intelligent, well educated, often thoughtful people are just as susceptible.I see nothing but ill in the deregulation of debt that has created the cost of living crisis.
Attacking those on the other side however is the act of the foolish and hardly warrants any respect or sympathy. Bitterness is a horrible affliction that curses many of the mindless Britons who are slaves to the media industry and the drivel they spew.
When you have idiots bleating about crofters then you can see how farcical it has become amongst little britons.
There is nothing positive, pleasant of dignified in revelling in others' misfortunes.
Political blaming the money lenders for their overborrowing is as old as the hills.
The difference is that this time around the base level of education in the UK is so low that few people are aware of their puppetry.
rovermorris999 said:
Sadly it seems that envy and schadenfreude are two of the main states of mind seen in this country these days, not helped by the juvenile class war and politics of envy coming from Her Majesty's Opposition and the SNP.
It doesn't bode well for the future.
I agree, to an extent but I dont think it pays to pass everything off as envy and "Serves you Right", sometimes it may be correct, or at least partially correct but to make that judgement one should be in possession of the facts and make ones own decision on matters.It doesn't bode well for the future.
YankeePorker said:
+1
While I don't partake in it, the rants about bankers and their big bonuses I can understand. They're not helped by the intangible nature of their "product" and the perception that their risk taking is with other peoples' money and is, in any cae, largely underwritten by the government if the st hits the fan.
However, having a go at the people working onshore and offshore in the O & G industry is very unfair in my opinion. They're working in a hard nosed industry that produces an essential primary resource. You think they're overpaid? Get the necessary training and go and earn your crust that way too then! The prices paid for the petrol and gas resulting from their work is not high because of them - talk to the government about the huge tax slice that makes N Sea production economically touch and go!
[Wanders off disappointed at the PH reaction, muttering darkly......]
I don't doubt that these guys work hard under arduous conditions but that's why they get paid what they do.While I don't partake in it, the rants about bankers and their big bonuses I can understand. They're not helped by the intangible nature of their "product" and the perception that their risk taking is with other peoples' money and is, in any cae, largely underwritten by the government if the s
t hits the fan.However, having a go at the people working onshore and offshore in the O & G industry is very unfair in my opinion. They're working in a hard nosed industry that produces an essential primary resource. You think they're overpaid? Get the necessary training and go and earn your crust that way too then! The prices paid for the petrol and gas resulting from their work is not high because of them - talk to the government about the huge tax slice that makes N Sea production economically touch and go!
[Wanders off disappointed at the PH reaction, muttering darkly......]
It's difficult to shead a tear for the companies and their shareholders though when Shell made 'only' $5.3bn in the third quarter, Exxon 'only' made $8.07bn and Chevron $5.6bn. Even Royal Dutch Shell with $5.3bn (I'd assume 5,300,000,000, a US Billion) is still $1.7 Billion a month or $57 MILLION a day. Sure they have a lot of eggs in a lot of baskets but my heart doesn't bleed for the CEO and board members. (And yes I'm aware that's their duty to Shareholders and pension funds etc rely on good returns from these companies but when they're been making that amount of money when the going has been good is it unreasonable to think that they should have made allowances for situations like this? It will only be a temporary blip anyway. Within a year to eighteen months it'll be back over $100 a barrel.
Gandahar said:
RichTT said:
Gandahar said:
I'm sure a lot of Scottish farmers / crofters will feel sorry for them having to live in central heated off shore installations whilst they have the day long smell of wet sheep for only 1/4 the pay
I've not been on a rig floor yet that's been central heated, apart from perhaps by a flare boom. Try pissing down with rain or -20 with windchill. I suggest educating yourself before assuming that we all sit in some sort of luxury office complex that just happens to be offshore. As mentioned most offshore workers work in an environment far better for most hours of the day compared to some other sectors working in the UK. At more than twice the pay.
Summary, there is always someone worse off than you and people like to complain, even when they are relatively well off.
DonkeyApple said:
Saudi oil is amongst the cheapest to extract with things like shake oil amongst the most expensive. In the middle you have deep sea then shallow sea like North Sea basin.
Then there are different types of oil, Saudi oil is quite heavy so contains less of the higher another fractions, such as hexane that make up petrol but is great for burning in our power stations of for other core industrial purposes, North Sea oil is light and very rich in hexanes and the other octane fractions that make up our fuel needs.
The cost of US oil is much higher than Moddle East so OPEC can drive the US really hard if it wants to.
Aberdeen will contract as projects get shelved but it is a central hub for much of the globe''s production so there will still be plenty or work and revenue just leaner and just as has happened before.
What is interesting is that off the exchanges oil is trading well under $50 and this suggests there is more to go on the fall of the exchange prices. Our 'house' view is that the fall has gone too far for a quick recovery. That there is no extra storage capacity so propping up the price via central buying isn't an option so high end producers are going to have to fail and st down to remove supply from the system.
So in short, prices could go much lower potentially.
In addition, Russia is totally fked. Wheat is up 30% from lows as Russia will not be exporting if the ruble stays so low. And industry is screwed as they cannot buy in resources due to the cost of USD to them and the massive fall in oil dollar revenue isn't going to improve soon.
In short, Russia is on the edge of repeating 1998/9 and it will take banks like Barclays with it as well as Deutsche and others.
Frankly, Aberdeen contracting off oil boom highs is a total irrelevance compared to what the whole of the UK might face again.
One could almost believe that the West may be incentivised to knock out some overseas production?
That's an interesting post but I've heard a different take on it.Then there are different types of oil, Saudi oil is quite heavy so contains less of the higher another fractions, such as hexane that make up petrol but is great for burning in our power stations of for other core industrial purposes, North Sea oil is light and very rich in hexanes and the other octane fractions that make up our fuel needs.
The cost of US oil is much higher than Moddle East so OPEC can drive the US really hard if it wants to.
Aberdeen will contract as projects get shelved but it is a central hub for much of the globe''s production so there will still be plenty or work and revenue just leaner and just as has happened before.
What is interesting is that off the exchanges oil is trading well under $50 and this suggests there is more to go on the fall of the exchange prices. Our 'house' view is that the fall has gone too far for a quick recovery. That there is no extra storage capacity so propping up the price via central buying isn't an option so high end producers are going to have to fail and s
t down to remove supply from the system. So in short, prices could go much lower potentially.
In addition, Russia is totally f
ked. Wheat is up 30% from lows as Russia will not be exporting if the ruble stays so low. And industry is screwed as they cannot buy in resources due to the cost of USD to them and the massive fall in oil dollar revenue isn't going to improve soon. In short, Russia is on the edge of repeating 1998/9 and it will take banks like Barclays with it as well as Deutsche and others.
Frankly, Aberdeen contracting off oil boom highs is a total irrelevance compared to what the whole of the UK might face again.
One could almost believe that the West may be incentivised to knock out some overseas production?
While oil prices falling is bad in some respects it actually has a net benefit on world economic growth, not for countries who are net producers, but for those that aren't. I'd be supprised if our banks are seriously exposed to failing if Russia dies on it's arse. I suspect that this situation may force Putin's hand into backing down over Ukraine so that sanctions are lifted.
DonkeyApple said:
Indeed. It's a wonderful political tool. Just look at how Brown managed to shift the blame of his deregulation of retail debt to increase spending beyond means onto the Jews (or rather the bankers).
Political blaming the money lenders for their overborrowing is as old as the hills.
The difference is that this time around the base level of education in the UK is so low that few people are aware of their puppetry.
I rather think you're over simplifying things yourself here, just the other way round.Political blaming the money lenders for their overborrowing is as old as the hills.
The difference is that this time around the base level of education in the UK is so low that few people are aware of their puppetry.
The Politicians lost sight of what the banks were doing as did a lot of the bankers I suspect. The banks left themselves vulnerable and when it went tits up the whole house of cards fell down.
To suggest that the economic meltdown was all the fault of governments and not the fault of the finacial instituations that got themselves into the s
t in the first place is simply wrong. Oh and the comment about the base level of education being low is more rubbish too.
Compared to when exactly?
Final point, someone change the f
king thread title as I get an error message everytime I post and have to go back into the forum again!!Edited by Devil2575 on Friday 19th December 17:00
Mad Jock said:
I work in the offshore oil industry, and have done since 1981. I started out as a painter and cleaner, and considered that my salary then was pretty good. I thought that I would do this for a couple of years before going back onshore for a "proper job".
To put this in perspective, I was a graduate with an engineering degree, with very few jobs on offer onshore, and on the advice of an old family friend, and his connections, took a job on an exploration rig. My fellow graduates, in 1980, who had gone straight in to jobs with British Leyland, Vauxhall and Ford, were earning around £2000 to £3000 p.a. This was the time when the motor industry had been doing very well, in 1979, followed by a period of near collapse after 1981.
My starting salary in 1981 was around £8000 p.a. This was monumental in comparison to my graduate chums, but it only lasted 6 weeks, as I got promoted, and was now on £9000 p.a. Oh dear, two days later I was promoted again, to roughneck, and was suddenly on £10,000 p.a. and getting a "proper job" onshore went out the window.
This was great stuff. This huge salary, effectively 6 months vacation a year, 23 years old. What's not to like? This was still a relatively "frontiersman" type of job, the girls thought that we were all hard men, we got to commute by helicopter, and were well fed. Yes, the conditions were tough, especially when the weather got bad. I was on an exploration rig, a semi-submersible, that rolled about quite badly in rough weather, and in those days if you couldn't read, time off was pretty dull. No phones, no internet, no satellite TV. 3 movies a week delivered by chopper, on reels of film, and a table tennis table. If we were watching the movie, the table tennis had to stop, as it was in the same room.
At the end of the day, if you didn't like it, you quit. I certainly went in to the job with my eyes open, and knew that I had to man up pretty quickly.
By 1984, I was a derrickman, and earning good money. I got married in 1985, bought a house, then saw the collapse of the price of oil and by 1986 I found myself redundant, with no income, a mortgage and a young wife to impress.
After a period working in South Africa, I came back to the industry in 1987. I managed to get the same job, but now with a 25% pay cut, and all of the little benefits that we had had removed. It was a bit of a struggle, but with a change of job in 1988 to Drilling Fluids Engineer, I regained some of my faith in the industry. I managed to weather the next couple of potential crises, when others were laid off, and still consider it to be well paid.
However, things are not as rosy as most of you seem to think. The Hollywood salaries of the early 1980's disappeared after the first crisis in 1985. If I was earning today what a similar engineer was earning in 1984, my pay would be 3 times higher than it is. I'm not complaining, I have roof over my head, I can feed myself, and I have a good life/work balance. I am, however, getting on in years, and while I might be a little annoyed at being made redundant now, I have managed to put something aside for this particular rainy day. That can't be said for the younger employees, who will suffer for what appears to be a drop in prices brought about by world politics, well out of their control.
If I were them, I wouldn't be complaining about pay cuts. Better to keep their jobs than lose them altogether. It's not as tough out there as it used to be, but it's still tough, and it's the exploration guys at the sharp end that will get shafted first. They are costing money, not generating it. The production boys will carry on, possibly with reduced manning, but the platforms will continue to operate. An exploration rig will get parked at Invergordon, and the crews mostly laid off.
The wages offered in Oil and Gas may not be the Hollywood levels they once were as you put it but they are still a lot higher then equivalent jobs outside of Oil and Gas. I'm in petrochemicals and I could pretty much double my salary if I went to work up in Aberdeen (well I could a few months ago anyway). We lost a lot of good people over the last 18 months to the likes of BP for that very reason. Our final salary scheme was closing, people were pissed off and started to look around. They saw the money on offer and took it. In fact just as many have gone to the middle east for 3 times the money.To put this in perspective, I was a graduate with an engineering degree, with very few jobs on offer onshore, and on the advice of an old family friend, and his connections, took a job on an exploration rig. My fellow graduates, in 1980, who had gone straight in to jobs with British Leyland, Vauxhall and Ford, were earning around £2000 to £3000 p.a. This was the time when the motor industry had been doing very well, in 1979, followed by a period of near collapse after 1981.
My starting salary in 1981 was around £8000 p.a. This was monumental in comparison to my graduate chums, but it only lasted 6 weeks, as I got promoted, and was now on £9000 p.a. Oh dear, two days later I was promoted again, to roughneck, and was suddenly on £10,000 p.a. and getting a "proper job" onshore went out the window.
This was great stuff. This huge salary, effectively 6 months vacation a year, 23 years old. What's not to like? This was still a relatively "frontiersman" type of job, the girls thought that we were all hard men, we got to commute by helicopter, and were well fed. Yes, the conditions were tough, especially when the weather got bad. I was on an exploration rig, a semi-submersible, that rolled about quite badly in rough weather, and in those days if you couldn't read, time off was pretty dull. No phones, no internet, no satellite TV. 3 movies a week delivered by chopper, on reels of film, and a table tennis table. If we were watching the movie, the table tennis had to stop, as it was in the same room.
At the end of the day, if you didn't like it, you quit. I certainly went in to the job with my eyes open, and knew that I had to man up pretty quickly.
By 1984, I was a derrickman, and earning good money. I got married in 1985, bought a house, then saw the collapse of the price of oil and by 1986 I found myself redundant, with no income, a mortgage and a young wife to impress.
After a period working in South Africa, I came back to the industry in 1987. I managed to get the same job, but now with a 25% pay cut, and all of the little benefits that we had had removed. It was a bit of a struggle, but with a change of job in 1988 to Drilling Fluids Engineer, I regained some of my faith in the industry. I managed to weather the next couple of potential crises, when others were laid off, and still consider it to be well paid.
However, things are not as rosy as most of you seem to think. The Hollywood salaries of the early 1980's disappeared after the first crisis in 1985. If I was earning today what a similar engineer was earning in 1984, my pay would be 3 times higher than it is. I'm not complaining, I have roof over my head, I can feed myself, and I have a good life/work balance. I am, however, getting on in years, and while I might be a little annoyed at being made redundant now, I have managed to put something aside for this particular rainy day. That can't be said for the younger employees, who will suffer for what appears to be a drop in prices brought about by world politics, well out of their control.
If I were them, I wouldn't be complaining about pay cuts. Better to keep their jobs than lose them altogether. It's not as tough out there as it used to be, but it's still tough, and it's the exploration guys at the sharp end that will get shafted first. They are costing money, not generating it. The production boys will carry on, possibly with reduced manning, but the platforms will continue to operate. An exploration rig will get parked at Invergordon, and the crews mostly laid off.
I've also spoken to lads who have worked as contractors both on and offshore and depending on your line of work it was possible to get £400-£1200 per day. Even fitters can take home 60k a year if they work offshore. Not bad for a job where you only work half the year and haven't had to do any higher level qualifications. I know an ex shift manager who has gone to work offshore in the middle east for £130k a year on a two year contract.
So while it's not good for anyone when they lose their job, this is one of the trade offs for that kind of work. I have a lot more sympathy for the permanent staff than I do the contractors.
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