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ConocoPhillips said Tuesday it is planning to cut 1,800 employees, or 10 percent of its global workforce, in the next several weeks as it copes with low oil prices.
Daren Beaudo, a company spokesman, confirmed that an internal communication was sent to employees earlier this week informing them of the upcoming staff reductions. Most of those affected workers will receive layoff notifications next month.
The largest portion of the job cuts will come from North America, he said, where the Houston oil producer drills for crude from the oil sands in northern Canada to the shale plays in South Texas. The firm will also trim about 1,000 core contractors from its workforce.
Oil industry officials were fearing a new wave of layoffs on Tuesday after Norway’s large oil service firm Aker Solutions announced that as many as 500 employees will be losing their jobs. The large-scale layoff will affect full-time Aker workers at the company’s Oslo headquarters at Fornebu and at company operations in Stokke, Moss and Tranby.
Aker Solutions management blamed the cuts on a lengthy period of low activity and lack of new contracts for the company, a result of its own oil industry customers cutting back after oil prices took a dive. Since August of last year, the price of a barrel of Norway’s North Sea crude oil has fallen from USD 110 a barrel to around USD 50, and last week it dipped as low as USD 43 before recovering.
Per Harald Kongelf, chief of Aker Solutions in Norway, stated that oil companies are reducing their investments and postponing various projects, and that has led to a “marked downturn” in activity in the Norwegian oil service market over the past year. Newspaper Dagens Næringsliv (DN) noted that Aker Solutions saw its second-quarter operating profit fall from NOK 472 million last year to NOK 376 million this year.
Oil Workers Struggle To Find New Jobs
This is the third major job reduction by GE’s Lufkin Industries this year and the second at its Foundry plant, which is being closed through this mass layoff, the company said in a letter to the Texas Workforce Commission. Many oil field services companies have implemented major job cuts during the ongoing oil downturn.
Penn West Petroleum Ltd. is cutting its workforce by 400 full-time employees and contractors — most of them working at company headquarters in Calgary.
The jobs represent 35 per cent of the total workforce at Penn West, a prominent mid-sized oil and gas producer.
U.S. and global benchmarks enter bull markets as OPEC says it ‘stands ready to talk to all other producers’
Oil prices soared Monday, marking their strongest three-day rally since Iraq’s 1990 invasion of Kuwait, on doubts the global glut of crude would be as long-lasting as many investors and traders had earlier believed.
Precipitating the rally—crude rose 27% in three sessions—were several factors, including a downward revision of U.S. oil output and a report that sparked speculation the Organization of the Petroleum Exporting Countries may be considering cutting production.
OPEC, the producer of 40 percent of the world’s oil, renewed its readiness to talk to other crude exporters to achieve “fair and reasonable prices,” according to the group’s monthly magazine. Oil jumped to the highest in a month on the report.
“There is no quick fix, but if there is a willingness to face the oil industry’s challenges together, then the prospects for the future have to be a lot better than what everyone involved in the industry has been experiencing over the past nine months or so,” said the opening commentary in the OPEC Bulletin published today on the group’s website. “As the Organization has stressed on numerous occasions, it stands ready to talk to all other producers.”
The 12-member Organization of Petroleum Exporting Countries won’t agree to carry alone the burden of propping up oil prices by cutting supply and non-member nations would have to share the burden, it said.
The news came a day after Eni CEO Claudio Descalzi met in Cairo with Egyptian President Abdel-Fattah el-Sissi, the Egyptian leader's office said.
Eni said the discovery — made in its Zohr prospect "in the deep waters of Egypt" — could hold a potential 30 trillion cubic feet of gas over an area of 100 square kilometers (38.6 square miles).
Oilfield services company Baker Hughes Inc. says the number of rigs exploring for oil and natural gas in the U.S. this week declined by eight to 877.
Among major oil- and gas-producing states, Texas gained three rigs.
Celebrating the region's economic history and the people who work to keep it going, the Red Dirt Black Gold Festival in Artesia started the day Saturday with a large turnout for the Oil Olympics.
The Artesia Arts Council and the Arts and Cultural District, along with the Artesia Chamber of Commerce coordinated the festival with its various events.
The oil-field Olympics brought out more than 20 teams representing various oil-field related companies, along with their families.
Low oil and gas prices, increased costs blamed for move
An undisclosed number of employees at the Farmington Halliburton Co. facility on East Main Street were laid off by the company this week.
Company spokesman William Fitzgerald confirmed the terminations in an emailed statement on Thursday.
The incident occurred at the El Tordillo field, which is located near the city of Comodoro Rivadavia (1,080 miles south of Buenos Aires) and operated by Tecpetrol, a unit of the Argentine group Techint.
The accident occurred during maintenance work, Tecpetrol, the concession holder, said in a statement, while local media reported that an explosion occurred while workers were welding a pipe.
National Oilwell Varco has confirmed it is axing 900 jobs in Norway as a market slump has taken a toll on orders for the US-based drilling equipment supplier.
NOV’s Kristiansand location will bear the brunt of the redundancies with 425 staff to pack their bags, while 235 jobs will be cut in Stavanger, 70 in the Oslo area and 120 in Molde, according to a company release cited by Norwegian news channel NRK.
Staff affected by the cuts will be served with redundancy notices next month and will leave by the end of the year.
One of the world’s biggest drilling companies has pleaded guilty to breaching its duty to provide a safe workplace following the death of two workers on its offshore oil rig.
Stena Drilling Australia, part of the global giant, entered the plea in the Magistrates Court of Victoria yesterday and will be sentenced next Thursday.
Schlumberger Limited and Cameron today jointly announced a definitive merger agreement in which the companies will combine in a stock and cash transaction. The agreement was unanimously approved by the boards of directors of both companies.
Based on the closing stock prices of both companies on August 25, 2015, the agreement places a value of $66.36 per Cameron share, representing a 37.0% premium to Cameron’s 20-day volume weighted average price of $48.45 per share, and a 56.3% premium to Cameron’s most recent closing stock price of $42.47 per share. Upon closing, Cameron shareholders will own approximately 10% of Schlumberger’s outstanding shares of common stock.
According to Facebook posts this fire on a rig site southeast of Pecos,Texas engulfed Halliburton's fracking equipment in flames on the afternoon of August 8th.
The fracking well was not the source of the fire, officials confirmed.
Opec veteran says that current oil prices slump has exceeded the worst expectations of the group
With oil prices plummeting due to global oversupply, the Organisation of the Petroleum Exporting Countries (Opec) would be unable to stabilise the market on its own, Abdullah bin Hamad Al-Attiyah told The Telegraph on Monday. The group - which is mainly comprised of Middle Eastern and South American oil producers - would need agreement from other oil-producing nations.
Oil, the lifeblood of many countries that produce and sell it, appears to be rapidly turning into an ever-cheaper economic curse.
In oil-endowed Iraq, where an Islamic State insurgency and fractious sectarian politics are growing threats, a new source of instability erupted this month with violent protests over the government’s failure to provide reliable electricity and explain what has been done with all the promised petroleum money. In Russia, a leading oil producer, consumers are now paying far more for imports, largely because of their currency’s plummeting value. In Nigeria and Venezuela, which rely almost completely on oil exports, fears of unrest and economic instability are building. In Ecuador, where oil revenue has fallen by nearly half since last year, tens of thousands of demonstrators pour into the streets every week, angered by the government’s economic policies.
The crew from Liberty Fishing and Rental Tools returned to a well near Snyder last week and noticed they’d been hit.
President and co-owner Monnie Sparkman said the tires would cost about $1,500 to replace — “not that big of a deal,” he said, but the theft would leave the trailer stuck in place and force employees to spend the time driving out to the lease, jacking up the truck and installing new tires.
Brent and US oil mark fresh 6-1/2-year lows on China and oversupply
Oil prices hit 6-1/2-year lows on Monday after Chinese stock markets suffered their biggest one-day fall since the global financial crisis, intensifying worries over the outlook for global oil demand.
Inaction by the Chinese government following an 11 per cent rout in local stock markets last week encouraged a free-fall in global equities and other commodities on Monday.
Top shale oil producer Pioneer Natural Resources Co has found an unusual way to both save water and cut costs for its wells: tapping the treated runoff from toilets, sinks and showers in West Texas.
Pioneer has signed an 11-year, $117 million deal with the city of Odessa, Texas that will guarantee it access to millions of gallons of treated municipal wastewater each day, for use in nearby oilfields. Deliveries of the so-called effluent, are expected to start at the end of the year.
As crude oil has slid to its lowest level in six years -currently about $40 a barrel - oil and gas companies pumping from shale rock have tried to cut every unnecessary penny from their operations. Water acquisition and transportation can be up to 10 percent of the cost of drilling and fracking a well, according to consulting firm IHS.
Oil prices dipped below $40 a barrel Friday for the first time in 6 ½ years on the prospect of falling global demand, busting through a key threshold that could signal further declines and market turmoil.
The price of West Texas Intermediate for October delivery dropped as low as $39.86 a barrel, the first time it was under $40 since March 2009. Crude rallied to close at $40.45, but it was still down 87 cents on the day. And some analysts say the drop below $40 likely portends an additional slide into the $30's and continued weakness in the short term.
"It's a very important psychological level,“ says Phil Flynn, senior energy analyst with the Price Futures Group. “It really signals that the global economy is in trouble.”
National Oilwell Varco’s technology is helping pull oil companies out of the bust by automating how they drill.
National Oilwell Varco is the world’s biggest builder of oilfield gear. Last year it sold $21 billion worth of everything from drilling rigs and compressors to blowout preventers and pipe. But this year, as oil prices plunged, NOV’s sales have tumbled 26% and its shares are off 50%, erasing more than $15 billion in market cap. That’s what happens when America’s oil companies mothball half their drilling rigs and lay off more than 150,000 workers.
But where others see disaster, Clay Williams, CEO of NOV, sees opportunity. Busts have a bright side: Oil companies get interested in learning new tricks. “In the $100-per-barrel world there’s not much incentive to do things differently, because everybody’s making money,” he says. “But in a $50-per-barrel world, reality sets in and our customers say, ‘How can we do things differently? How can we make the economics work?’ ”
Layoffs are starting to hit New Orleans as Royal Dutch Shell moves forward with plans to eliminate 6,500 jobs worldwide. The cuts come as Shell seeks to cut costs amid lower oil and gas prices.
Shell spokeswoman Kimberly Windon confirmed in an email the company has started to cut jobs at its New Orleans and Houston offices, though it is not providing a "specific breakdown of workforce numbers."
About 2,300 Shell employees and contractors are at One Shell Square on Poydras Street, and the majority support Shell's drilling and exploration operations in the deepwater Gulf of Mexico. Windon said the deepwater segment "continues to be an important part of the Shell global portfolio."
With a global oil glut driving prices to their lowest levels in six years, ConocoPhillips announced on Thursday that it has started the first oil development to occur within the National Petroleum Reserve-Alaska since its establishment in 1923.
Oil prices this week dropped to $40.80 a barrel for benchmark West Texas Intermediate, but the Houston-based company chose to move ahead on the project, an extension of the Alpine field that has been in the works for more than a decade known as Colville Delta 5.
"It's good for our company because in Alaska, more production is a good thing," said ConocoPhillips spokeswoman Natalie Lowman. "The infrastructure we installed will help enable future development in the NPR-A."
Texas City Fire Department: No residents in danger
According to firefighters on the scene, there is oil burning inside of a container at the refinery. Right now, they are letting the fire burn itself out.
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By Roughneck City, 2015-08-28With oil prices dropping to 6 year lows and over 200,000 American Oil Workers losing their jobs but still not a word from the White house...
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