North Sea oil industry 'close to collapse'
Discussion
http://www.bbc.co.uk/news/business-30525539
The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC.
Oil companies and service providers are cutting staff and investment to save money.
now I am a simple person but.......
http://www.n-56.org/updates/oil-and-gas-revenues-m...
Does the first article mean the Scottish finances in the red ?
The UK's oil industry is in "crisis" as prices drop, a senior industry leader has told the BBC.
Oil companies and service providers are cutting staff and investment to save money.
now I am a simple person but.......
http://www.n-56.org/updates/oil-and-gas-revenues-m...
Does the first article mean the Scottish finances in the red ?
daemon said:
55palfers said:
Did they not put something in the bank for rainy day when prices were going through the roof?
+1The oil industry has made billions and all of a sudden they're getting it tight.
Not feeling much sympathy.
I work for a company who are involved in Ol and Gas, We were due our annual increase and got an email saying that wasn't going to happen, and guess what, it wasnt Billions !
How long have the prices been "low"?
Everyone who produces oil is moaning right now, all apart from OPEC I guess since they are the ones who are effectively setting the price.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?...
According to that, prices have only dropped since July.
Previous to that, I don't think I remembering them complain they had no where to stack the money in the good times.
Everyone who produces oil is moaning right now, all apart from OPEC I guess since they are the ones who are effectively setting the price.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?...
According to that, prices have only dropped since July.
Previous to that, I don't think I remembering them complain they had no where to stack the money in the good times.
J4CKO said:
Well, perhaps think of the folk who are losing their jobs, it isnt faceless executives and shareholders being affected, its normal people being made redundant just before Christmas.
I work for a company who are involved in Ol and Gas, We were due our annual increase and got an email saying that wasn't going to happen, and guess what, it wasnt Billions !
It states in the article that the majority of those being 'laid off' are contractors coming to the end of their contracts. As such they should really be aware that their contract could end and they maybe wouldn't be renewed and should have money aside for such a situation. As has been said my heart bleeds for the Oil companies that were making Billions upon Billions a year but were able to hide behind Government taxation for the high price of petrol. No doubt the Oil Companies will still need staff but with the number of people looking and demand the rates can be lowered. Ta-da! Cost savings!I work for a company who are involved in Ol and Gas, We were due our annual increase and got an email saying that wasn't going to happen, and guess what, it wasnt Billions !
williamp said:
That is fekkin ancient!We could do with this in the right forum, which is... ehhh...
Copied from a thread in jobs and employment:
Certainly above 7% for high performers.They have had it good for a long time.
mikerons88 said:
conanius said:
You don't say what the 10% pay rises over the years are on a base of. 10% of very little isn't very much. However, regardless of the base salary these rises are paid to, 10% pay rises over the last few years is pretty incredible really. I don't know anyone who is managing to average that without jumping around jobs and taking huge steps up in their career.
I'd probably be of the view you should have commented at the point of promotion. You can try questioning it now, but just remember you're doing really well with what you are getting !!
Quite normal in a lot of oil and gas companies.I'd probably be of the view you should have commented at the point of promotion. You can try questioning it now, but just remember you're doing really well with what you are getting !!
Certainly above 7% for high performers.
williamp said:
Serves them right then....Its tough, demanding work that involves being away from home 2 weeks in 4 sat on an Oil Rig in the North Sea, suspect a lot will be laid off, some fields werent all that profitable when oil was over $100 a barrel, those will be closed down pretty quick.
Anyone saying serves you right, etc etc, perhaps check where your pension fund is invested, perhaps realise that this is pretty bad news for the UK as the North Sea Oil is a big earner with loads of supporting industries.
When I heard the news I'll admit to thinking that although it's sad that these people are being made redundant, I kind of feel that the oil industry and its workers have been creaming it in for years and the consumer has been continually squeezed.
It doesn't make things right but it's about time the consumer had a bit of a reprieve.
It doesn't make things right but it's about time the consumer had a bit of a reprieve.
lord trumpton said:
When I heard the news I'll admit to thinking that although it's sad that these people are being made redundant, I kind of feel that the oil industry and its workers have been creaming it in for years and the consumer has been continually squeezed.
It doesn't make things right but it's about time the consumer had a bit of a reprieve.
Yeah, I can agree with that, despite being part of the industry I still buy petrol and diesel, however the lions share of the cost is handed to the government, Opec are a rich boys club interested only in lining their pockets, even if they have Trillions in the bank, oil wealth tends to be very selective, anyone who makes a good living is just able to do so as the oil companies need them and it is small change.It doesn't make things right but it's about time the consumer had a bit of a reprieve.
anonymous said:
[redacted]
New facilities to do what exactly?Once costs of production exceed selling price there's no way to avoid losses.
Let's face it, the whole situation is caused by USAs enthusiasm to screw Putin with the whole OPEC cartel enjoying the ride.
Fracking - that's the point here. OPEC couldn't give a toss about Putin but would love to put the brakes on fracking - by the simple expedient of selling their oil at a slightly lower profit margin. Production costs in the gulf are almost nothing compared with other regions.
anonymous said:
[redacted]
The north sea is over taxed by government and offers little other than diminishing returns/greater expense to exploit. While it would be a disaster for the UK and Scotland particularly many people I know have already left Aberdeen and gone to places that cost less to live in, offer greater wages and lower tax.There are still plenty of jobs out there for oil and gas professionals they'll just move elsewhere and leave the UK to fester in it's own dirtpool.
Oil and gas has been like this ever since I've been involved- they sack people when times are bad and then end up hiring them back as contractors at much higher salaries when times are good.
Firstly, the oil workers that are being laid off are the 'joe bloggs' of the industry. These people are doing anything up to 6 weeks on a rig or support vessel, working 12 hour shifts, sharing a bunk with someone else (the other guy is at work in their 12 hours off) in some of the toughest fields in the world. Yes they are well paid but believe me it is extremely hard work, and they do get time for time but actually work more hours than the average 35/40 hour week even with this time off.
The problem is that this isn't just in the North Sea, but across all fields which are more complex to explore/develop and produce as the cost is higher. It is a political game that OPEC is happy to go with, as they are making a short term loss (or more accurately a lower profit), for a longer term game. In the longer term the price will reach and exceed it previous level, as the investment in the more complex projects is just not viable.
The problem is that this isn't just in the North Sea, but across all fields which are more complex to explore/develop and produce as the cost is higher. It is a political game that OPEC is happy to go with, as they are making a short term loss (or more accurately a lower profit), for a longer term game. In the longer term the price will reach and exceed it previous level, as the investment in the more complex projects is just not viable.
Of course we don't need highly skilled engineers producing an absolutely essential product, that we all use and benefit from, for circa £65,000/yr. We need lots of bankers in the city playing monopoly with real money, huge salaries and colossal bonuses, and when they f***k it all up, the government comes along with about a £1,000,000,000 and bails them out. Any bankers had their collars felt by PC plod yet?
Wow, just wow, to some of the comments above.
I used to work and live in Aberdeen. I left back in 1999 when the oil and gas industry was going through a tight time as the price of oil was hitting $12 and looked to be heading to $10.
Aberdeen has a small micro economy all of it's own , completely unaffected by anything other than oil and gas profits driven by oil price. When the price of oil is high enough , it's boom time. When it's low, it's bust, big bust.
So yes, people probably have been getting decent rate increases for a few years, but that will have followed rate cuts from the previous bust, and now, those rates will again be chopped back by the cartel controlled companies resident in Aberdeen. When things are bad, they will just impose whatever cuts they think they can get away with.
Unfortunately for Aberdeen, there's no answer to this. It's just the way it is. If the price goes much lower Aberdeen could well become a relative ghost town again... and really quickly too.
I used to work and live in Aberdeen. I left back in 1999 when the oil and gas industry was going through a tight time as the price of oil was hitting $12 and looked to be heading to $10.
Aberdeen has a small micro economy all of it's own , completely unaffected by anything other than oil and gas profits driven by oil price. When the price of oil is high enough , it's boom time. When it's low, it's bust, big bust.
So yes, people probably have been getting decent rate increases for a few years, but that will have followed rate cuts from the previous bust, and now, those rates will again be chopped back by the cartel controlled companies resident in Aberdeen. When things are bad, they will just impose whatever cuts they think they can get away with.
Unfortunately for Aberdeen, there's no answer to this. It's just the way it is. If the price goes much lower Aberdeen could well become a relative ghost town again... and really quickly too.
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