Author Topic: Schlumberger to Lay Off 9,000, as Crude Prices Fall  (Read 632 times)

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Offline ABX

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Schlumberger to Lay Off 9,000, as Crude Prices Fall
« on: January 16, 2015, 10:43:36 AM »
I've seen this around here in a bad way. I've had several friends laid off and my neighbor who owns an oilfield land management company says he is having a work stoppage for at least a month. The Saudis crashing the market are really hurting the little guy right now. These falling oil prices are not a good thing because they aren't a natural result of our own production (they were falling at a manageable pace because of that) but blatant market manipulation for the purpose of attacking our industry.

The drop in the price of oil will cost 9,000 workers at Schlumberger Ltd. (SLB) their jobs.

The company disclosed:

In response to lower commodity pricing and anticipated lower exploration and production spending in 2015, Schlumberger decided to reduce its overall headcount to better align with anticipated activity levels for 2015. Schlumberger recorded a $296 million charge associated with a headcount reduction of approximately 9,000.

Unfortunately for the workers, the oil services company had good reason. Although fourth-quarter revenue rose 6% to $12.5 billion and operating income by 7% to $1.9 billion, the company believes the situation has deteriorated....

Here is one of the bad parts. I see these young guys go to work for the oil field as one of the biggest blessings for their family. They can get on with a company like Great White Pressure Control and expect to pull in 6 figures in 9 months of work. Unfortunately, these are young men who don't have the wherewithall to deal with suddenly getting this much income in a short period of time and they are out buying $50K trucks and other 'toys' instead of being wise and investing it for slow downs like we are having now. At the oil fields, you also have tons of scammers coming in. "White Van" scams are all over the place. If you know anyone like this, give them some advice about managing their money if you can.

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