Oil & Gas Job Cuts

[Rodriguez]

I've lasted longer than a lot of people but the low oil price has finally caught up with me and I've been given my notice. Not an issue really since as a contractor, I'm prepared for it (I knew it was going to come at some point).

Are there many other people on here that have been made redundant from the O&G industry? Have you managed to find work yet? I know some guys have been struggling to find work in other industries, seems there may be a reluctance to take on O&G guys as it is expected that they will just leave when the oil price goes up. Has anyone experienced this?

It will be interesting to see what happens when the oil price goes up and projects start to get sanctioned again. I'm guessing a lot of guys will leave the industry for good, hopefully that will mean half decent rates for those that are left.

[chrig]

A mate of mine works in Aberdeen for one of the big petroleum suppliers - he says over the past couple of years it's been decimation around him but he's managed to hang on so far. We're talking a 70% kull in his office alone!

Anacdotally, spoke to another management consultant in O&G recently, he reckoned the tide isn't going to snap back especially quickly when wholesale raises again, they're expecting to see a lot of vocational business start-ups in the area by ex-O&G men over the next couple of years. So yes, it will get rid of a lot of the chaff.

[afcneal]

I'm long out of it now, but in the big 90s crash, you're absolutely right that employers were wary of O&G staff as the market always turned. This wariness was mainly limited to specific O&G roles (sub-surface mainly) and sympathy was in short supply in respect of (e.g.) greedy contract drillers who would blackmail the exploration companies to the tune of £1000 per day and then whine when the work dried up.

Location is of course key - or flexibility - in that folk in Aberdeen, Lowestoft etc would be hardest hit to to the reliance on O&G work so the ability/willingness to move was important and still is now.

Conversely, most O&G staff are/were very well trained and qualifiedin the main as thw wealthfrom the good times did filter back into training & development to a large extent. Health and safety is a good example, where the industry was waaaay ahead of many others....albeit from necessity.

So, depends what the person does and how narrow his/her skills are, coupled with the willingness/ability to relocate?

[markbannister]

I'm fortunately still in work as a contractor but working out in Baku and, as I write, making a rare offshore trip in the Caspian.

[Argee1977]

I can tell when it's drying up with the constant nationalist posts on my facebook timeline blaming the government for this reduction in oil and gas work and revenue!

[kungfugerbil]

Two family members have been given the boot from the North Sea rigs. The companies held out as long as they could and sorted them a last couple of trips each but it was a done deal.

Theyve both gone back to scaffolding; the father-in-law wisely told them to keep up their cards and Certs. Plenty around it seems.

They will obviously both hot-foot it back if they take on again though!

[noTAGlove]

I an engineer working for one of the majors in 'Upstream'.

4000 redundancies were announced in the press 2 months ago, and it takes a while to go through due process.

This last week those 4000 conversations were had in a worldwide coordinated effort, so you can imagine what it was like in the office.

I'm a survivor (for now) and hopefully the oil price ticking up gives a bit more confidence.

I'm 25 years in the industry and not seen anything like it. That said something had to happen.

In the booms times it was £1000 per day for some 'contract' engineer, and that was dragging in all the waifs and strays trying to grab a piece of the pie. Unfortunately, though this time the cuts are very deep, and a lot of good people have gone as well.

Give it time and industry will come back leaner and stronger. Don't forget it was $10 per barrel in the late 90s.

[Beaunidle]

Some of my best customers are O&G dependant, particularly the downhole tooling guys. Carparks at some of them have tumbleweed blowing through them. And this isn't Aberdeen, this is Gloucestershire.....

[Chris H]

I'm still hanging in there, my office has seen some pretty brutal cuts too, probably 40% of the people at my location have gone.

As bad as it has been here our sites in the States have been hit worse, at one plant alone we had nearly 1800 years of experience go in one round of cuts.

[PaulSim]

Yes due to cutbacks in o&g I moved to nuclear. 300 going at Wylfa, great move! It's not just oil, look at the steel industry too

[stoneyloon]

I've been in Wells for 24 years now and was a contractor for the last 3 or so... My last contract ended in July last year. Luckily I've got a staff position now but was out of it for 3 months. I'm on 25% of what I was on and it's a bloody struggle but it's better than nowt and there's plenty on that just now.
A lot of bloody good people paid off now and our industry is going to be in a right bloody mess when things pick up again.

[Chukas]

Offshore at the moment, i'm one of the lucky one's, the rig i was on was cold stacked,but i got a transfer to another rig.
Have only got work for another couple of months unless we get a new contract with someone.

[subseastu]

I've been lucky so far. I'm a deck officer originally but moved into the offshore side from the merchant navy as a DPO in '98. i've worked on most types of vessel from cable lay, ROV DSV, offshore windfarm and recently a drillship offshore Mozambique. We where brought out of contract early and then the cull began in the offshore units within the company. I was one of the lucky ones and have been transferred to an anchored Semi-sub in the North sea as a Control Room Operator. The slightly bad thing for me is as a navigator / DPO there is much call for that sort of thing in the midlands so I've no real transferable skills to go shoreside. If the worst does happen then I'd have to look at going deep sea again and 3-4 month trips but even then thats doubtful as alot of companies are feeling the pinch and employing cheap foreign labour. Our supply boats out here that run from Aberdeen are primarily crewed with Norwegian, eastern block and filipinos, hardly a brit among them.

[subseastu]

A lot of bloody good people paid off now and our industry is going to be in a right bloody mess when things pick up again.

This is true. Standard knee jerk reaction from the industry that never learns and only has eyes on the bottom line here and now. When the market picks up (to whatever level) there will be a mass shortage of qualified, competent people to work offshore worldwide. Watch out for over paid, inexperienced numpties coming and having a major incident / killing someone. Companies talk a good job but the stuff I've seen offshore it beggars belief that more people aren't injured, killed or ships / rigs aren't damaged or sunk. And this is before the downturn, companies will be desperate for people on the up turn to fill the spaces. One thing I have noticed as well is a huge amount of nepotism during this downturn where alot of more experienced, higher qualified people have been let go in favour of family members, lodge mates etc. I think I'm here to fill the companies equal opportunities program as a token englishman. I'm not sure who the one legged, black, single parent, lesbian is though? Unless its me as well and they've not told me.

[Jega]

Currently contracting on a refinery ,not too sure for how much longer though .
The whole oil/gas industry both on-shore and off shore is in an absolutely terrible state at the moment ,like many others on here i see really top class people getting laid off pretty much weekly .
A few lads have recently returned to the U.K. from Malaysia and the Philippines as well as the huge Wheatstone project in Australia .
Not too sure what the industry will look like when things do eventually pick up again ,as usual its the young ones you really feel for .

[Pitch3110]

Not directly involved but based here on the east coats we have seen out commercial development enquiries dry up as no planned investment in new buildings or offices.

[Tony]

I'm lucky that I have a job on a major construction/commissioning job in the North Sea sector that might keep me going for a while. In fact I've never earned more than I am at the moment.

Not sure what the future would bring if I got the boot here, though. It's bleak out there.

[JasonM]

Loads of knock on effect to the support industry too, my brother in law is a marine surveyor and their clients are laying up boats, he's on for now but his company is twitchy about the future.

[VDG]

Yep, it's now starting to affect the whole supply chain, auxiliary services and what's not. IMO any sandpits ops will be safe for a moment but anything less profitable ie deep sea, unconventional will be hammered.

[trainspanner]

My best man went into O&G a few years ago and loves it, not spoke in a few weeks actually so I don't know how he's got on. Like others have said it will pick up again, these things always do! Good luck with your next job.

[farquare]

You are about to see a tranche of debt defaults towatds the end of this year if prices remain depressed (which they are). Probably us shale 1st, interesting BNP parabais who have 1 of the biggest debt books in this field who were bullish have now shut that book and are presumably looking to close some of it out, probably at a discount

[Groundrush]

You are about to see a tranche of debt defaults towatds the end of this year if prices remain depressed (which they are).

I'd tend to agree. I can't see prices doing anything much until companies (and maybe even countries, Venezuela?) start going belly up. Even then, I'd set a target price of no more than $60 a barrel and there it will stay for a good while to come. That doesn't look too good for the North Sea with lifts costs of around $55 barrel. I can see this lasting 2 years or more, by which time there won't be an industry left.

[VDG]

And Ayran, oops I mean Iran is getting back from the cold will only complicate things.

Anyhoo, I hope Cuadrilla is doing well

[noTAGlove]

That doesn't look too good for the North Sea with lifts costs of around $55 barrel.

The oldest and largest facilities (with highest people and maintenance) in the North Sea have lift costs in the 40s. Efficient facilities in the low 20s with the newest facilities below that. Plenty of life in the North Sea if oil is at $60/bbl.

[subseastu]

The oldest and largest facilities (with highest people and maintenance) in the North Sea have lift costs in the 40s. Efficient facilities in the low 20s with the newest facilities below that. Plenty of life in the North Sea if oil is at $60/bbl.

That is very interesting and good to know. Maybe there's life in the old girl (N Sea) yet then

[noTAGlove]

What a difference a couple of months makes Given the lows of $27/bbl, this morning we are a buck or two shy of $50/bbl.

I was due to go on consultation on Apr 30, but just secured a new role yesterday, no doubt helped by the rising optimism.

If we get some stability over the next few months the work will be back, and hopefully it won't be long before the agency workers are negotiating a rate rise.

A very tough, unsettling and for some life changing couple of years in the O&G industry, and I do hope it's behind us.

[snowman]

Good news for those of you in the industry, but I expect everyone will be seeing petrol and everything else prices rising as a result...

Possibly not such great news for the economy overall...

M

[Beaunidle]

Bloody good news in my book.

[Wharry]

Had a friend that had spent a lot of time in Baku lose his job recently, know a few others in O&G but they're still safe, for now.

[Belligero]

Good news for those of you in the industry, but I expect everyone will be seeing petrol and everything else prices rising as a result...

Possibly not such great news for the economy overall...

M

Inexpensive petrol has mostly been a curse to North America. Its main effect has been to produce unlivable "cities" that are primarily made of generic suburban areas full of overweight, undiscerning consumers. Their infrastructure and culture sucks big-time as a result.

Cheap energy is far from cheap in the long run. The industries that benefit from it tend to be high-quantity/low-quality ones, anyway.

[snowman]

Inexpensive petrol has mostly been a curse to North America. Its main effect has been to produce unlivable "cities" that are primarily made of generic suburban areas full of overweight, undiscerning consumers. Their infrastructure and culture sucks big-time as a result.

Cheap energy is far from cheap in the long run. The industries that benefit from it tend to be high-quantity/low-quality ones, anyway.

That might be true, but I don't live in America and the concept of 'cheap energy' is a very alien one in the UK where deregulation led to profit driven cartels, rather than a free market benefiting the consumer...

M.

[bitfield]

Well, if it's any consolation, the long-term future for oil prices can only be up, for the simple reason that they're not making any more of it.

[el marinero]

Difficult times in the Oil and Gas industry for sure but hopefully it will bounce back leaner and more efficient. When it does bounce back I think that there will be some good opportunites - many people who are being made redundant now are of an age where they probably won't return. Factor in the others that find opportunities elsewhere in the meantime and that means there is going to be a big skills gap 3 or 4 years down the line.
Personally, I am hanging in there. My employer has asked us fleet wide to take a pay cut which I have declined (might regret that, we'll see). I don't agree that when it's lean they ask for a 20% voluntary cut but in the good times when they are raking in profits we got 2 or 3% pay rise. Know your worth, that's what i say.
Currently Captain on an AHTS in Brazil for Petrobras (who have their own woes ontop of the oil price) but amazingly we have just had our contract extended for another year. Hopefully I can stay on this boat and ride out the next couple of years.

[Tony]

My employer has asked us fleet wide to take a pay cut which I have declined (might regret that, we'll see). I don't agree that when it's lean they ask for a 20% voluntary cut but in the good times when they are raking in profits we got 2 or 3% pay rise. Know your worth, that's what i say.

Good for you. All these companies that are talking advantage of the market and cashing in on the back of pay cuts will reap the products of their greed when things pick up.

[mondie]

Good news for those of you in the industry, but I expect everyone will be seeing petrol and everything else prices rising as a result...

Possibly not such great news for the economy overall...

M

Good news indeed as I too am an oil pig. I don't think the fundamentals support oil near $50 so we will have to see if we take another drop back into the 30's. I fear that before the recovery really gets started. But then if I really knew I wouldn't be an oil pig in the first place.

[Chukas]

Looks like the rig i'm on is about to get scrapped, finish off this contract in the next month or so.
Have applied for a couple of jobs in Thailand and Africa, hopefully i'll pick something up.

[Mappa]

Very interesting to read your comments guys, I probably insure many of the companies you work for and its been doom and gloom for a while now. That said I did meet a client recently who seemed very upbeat and bullish about the future which is the first in a while now. Good luck to all of you looking for roles.


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[Mappa]

Looks like the rig i'm on is about to get scrapped, finish off this contract in the next month or so.
Have applied for a couple of jobs in Thailand and Africa, hopefully i'll pick something up.

I'm intrigued, which rig are you currently on?

[bitfield]

Well, if it's any consolation, the long-term future for oil prices can only be up, for the simple reason that they're not making any more of it.

Having said that, though, I saw this very interesting piece in Salon yesterday: There will be pandemonium: The end of the old oil order has already begun

"Until very recently, it was assumed that the demand for oil would continue to expand indefinitely, creating space for multiple producers to enter the market, and for ones already in it to increase their output. Even when supply outran demand and drove prices down, as has periodically occurred, producers could always take solace in the knowledge that, as in the past, demand would eventually rebound, jacking prices up again...

At the beginning of this century, many energy analysts were convinced that we were at the edge of the arrival of “peak oil”; a peak, that is, in the output of petroleum in which planetary reserves would be exhausted long before the demand for oil disappeared, triggering a global economic crisis. As a result of advances in drilling technology, however, the supply of oil has continued to grow, while demand has unexpectedly begun to stall. This can be traced both to slowing economic growth globally and to an accelerating “green revolution” in which the planet will be transitioning to non-carbon fuel sources. With most nations now committed to measures aimed at reducing emissions of greenhouse gases under the just-signed Paris climate accord, the demand for oil is likely to experience significant declines in the years ahead. In other words, global oil demand will peak long before supplies begin to run low, creating a monumental challenge for the oil-producing countries."

[Belligero]

^
Good article.

Despite living in Norway, I won't be shedding any tears for the oil-producing countries; though almost all have massively squandered the windfall, they've had a pretty good run. It's a waste of resources to simply burn the stuff, anyway. I'd be happy enough to see ground transportation get off the oil tit, though I don't see much alternative to liquid fuel for air travel.

Unfortunately, low prices mean that big, crappy cars will remain popular in the US and other regions and we'll piss away a tremendous gift. Much better to shut down some production and keep it in the ground for more useful applications.

[VDG]

It's not as simple as that. A lot of oil and natural gas goes into production of plastics, lubricants, dyes, drugs, tarmac etc so it's not only petrol and heating.. Almost everything these days contains oil and gas byproducts in one form or another, plus people tend to overlook impact on aviation and marine fuel including defence costs.

[Belligero]

^
Exactly; that's why I'd welcome a change from oil dependency for individual transportation, so it's available for other applications. Simply burning it to get one's fat ass to Wal-Mart has to be one of the most inefficient uses imaginable.

[andy tims]

My sympathies to those affected.

We lost about 500,000 construction and property jobs as a result of the 2008 crash. Many of those left the industry forever and with the lack of grads / apprentices entering the industry, we now have a severe skills shortage.

[hilly10]

My sympathies to those affected.

We lost about 500,000 construction and property jobs as a result of the 2008 crash. Many of those left the industry forever and with the lack of grads / apprentices entering the industry, we now have a severe skills shortage.

And only going to get worse. Birmingham is booming now and will so for the next six years all due to HS2, I am finding good labour hard to come by now and with a full order book till May next year it does not bode well. The only thing is after 43 years in Construction I have seen it all before Boom and bust never changes.

[noTAGlove]

Bumping this one to see what the mood is at the moment from others in the O&G industry.

By the skin of my teeth and seat of my pants I managed to remain employed in what was the worst downturn for at least 30 years, if not ever.

Strangely I feel now more secure than I have done for a long while as in my experience companies have cut very deep, and the good experienced people now appear few and far between.

Hopefully those who lost their jobs are now finding stuff out there as the industry ticks up again.

[GOAT]

Well I retired in July from oil and gas but have been persuaded back 2 days a Week...
All the talk is of lack of experience- most of the grey hairs have gone and the years of lack of training and apprenticeships will have an effect for sure.
Good news is Exxon looking to invest $800M plus at Fawley on the south coast
Several of the old O&G guys moving into the nuclear industry also.

[mondie]

Bumping this one to see what the mood is at the moment from others in the O&G industry.

By the skin of my teeth and seat of my pants I managed to remain employed in what was the worst downturn for at least 30 years, if not ever.

Strangely I feel now more secure than I have done for a long while as in my experience companies have cut very deep, and the good experienced people now appear few and far between.

Hopefully those who lost their jobs are now finding stuff out there as the industry ticks up again.

After I posted in this thread I was made redundant from my management position and spent 9 long boring and at times, infuriating months looking for another job. I finally found the right role for me and was successful in securing it and started in May. I have the best of all worlds now; it offered us the chance to move to beautiful North Wales, allows me to stay connected to the oil industry whilst most of the business is focussed outside of it on mining and civil. Its enjoyable being challenged and learning about new sectors and I have plenty of opportunities for travel.

I too see signs of a recovery but it is still going to be drawn out and painful for many people. When the market finally turns and the oil price starts to bite due to the billions of underinvestment over recent years, the industry is quickly going to find itself in a skills crunch. There does, however, still seem to be plenty of 'easy' oil coming to market and keepning a lid on prices, and of course for the first time, eletric cars are becoming a real threat to oil demand growth.

[Caruso]

I left O&G 17 years ago and have made a new career for myself in IT.

[Scottd]

I work in the supply chain and moved out to Indonesia a year ago as things were looking very slow at home.

I still keep in touch with a couple of companies back home and it seems business is starting to pick up and orders are being placed however the developments are mostly middle east with only the engineering and manufacturing happening in the UK.

[MrBanks]

I worked in O&G for 13 years in procurement until I got forced out of my last job by piss poor management and bullying. Now I am working for a private healthcare company heading up capex and I've never been happier. I had some good times in the early days of my career, especially the travel abroad including living in Thailand and Australia, but my feelings are that the projects will never be the same and the deals that ex pats got to work abroad are long gone, so I decided to forge a new path for my career.