Cause for concern?

[tut]

http://www.bbc.co.uk/news/business-30525539

tut

[Sanjøy]

Is next year an election year?

[graeme]

Already seeing the effects. Incoming linked-in requests are up.

[rossybee]

The use of the word "collapse" in the headline is journalistic sensationalism at its finest.

[philthy]

I have noticed my company have been getting rid of the agency guys or not renewing their contracts but nothing as serious like this article suggests.

[Mikie711]

A lot will depend on how long the Arab's and Yanks keep squabbling. The price collapse has in most part been driven by the Arabs in response to Americas claims that it can drill shale oil and gas cheaper than buy in oil. In response the Arabs have driven the price down so that it's cheaper to buy open market oil than drill for it in the US and have also said they will not slow production to prop up the oil price as is what usually happens at times like these.
If there is one thing I have learned in this industry it's that the price is cyclical, all boom and bust every few years for whatever reasons. The price will rebound eventually, when is anyone's guess but the low oil price does impact all fronts but the expensive to produce fields/projects feel the effects first. Typically the North Sea is much more sensitive to oil price fluctuations than other markets hence the industry reaction.

[mxvx]

It is absolutely a cause for concern for many. I personally know many effected by this, either lost their jobs (staff + contractors) , are worried about the future of their jobs/income or have had their income reduced (not quite so bad for those going from 1000/day to 800/900!)

[Mikie711]

In the deepwater fleet we are seeing rigs being stacked, unable to get contracts, having entire contracts bought out or day rates reduced. These in some cases are brand new rigs that 6 months ago were commanding $600,000+ a day rates now struggling to pick up work at $350,000. Has been a very sudden and dramatic shift which will take time to recover. Our marketing people do need expect to see an improvement in the market until the tail end of 2016 FWIW.

[j2 lot]

It highlights that you can't have your cake and eat it- strong industry with high fuel prices or shaky nail and cheap fuel.
I hope all on here with Oil & Gas industry connections are secure.

I will probably be flamed for raising the sensitive subject of Independence but the reliance on the oil market was why I couldn't vote for it.
(I have it on good authority the SNP are discussing a referendum within the next 3 years being in their election manifesto)

[Rosssco]

Its is concerning, but nothing like the 'collapse' in the sensationalist headline. The collapse is in new developments, which is to be expected, so areas like exploration / drilling will be most affected, but the industry doesn't just shut down like that.. Those who have been in the industry for a while (not me) know that this a cyclic event, and with a bit of global growth next year (ironically spurred by lower energy costs), we could well see the price back up by a not insignificant amount.. It fell to ~$40 in 2009. Within a year it was back to ~$80, and then over $100 not long after that, so who knows?

You'd think that the industry would try and ride out some of this by minimising staff and investment cuts. There's still a skills shortage in some areas, which is only exacerbated when people leave and go find something else to do.. Then come back when the oil price is high and they can work for silly money, again inflating cost and reducing the feasiblity of the NS..

I also can't resist an IndyRef comment The Nats seem pretty quiet about their jewel in the crown at this stage, but of course we wouldn't have been independent till 2016, by which stage it would be back to $150..

[tut]

Bloody typical, petrol at its lowest price for years and I will not be able to drive.

tut

[Dark]

The Nats seem pretty quiet about their jewel in the crown at this stage

Sturgeon was blaming the UK government on the lunchtime news..............

[Andy G]

The Nats seem pretty quiet about their jewel in the crown at this stage

Sturgeon was blaming the UK government on the lunchtime news..............

Yup - thank f*ck we didn't go with her insane Oil based plan.

Anyway, she's done really well with Prestwick airport..........

Oil wise, the US & Saudi's attempts to really f*ck Russia were always going to have knock on effects

[flyingscot68]

I've been in this industry for a long time, as others have stated it's very cyclical.
While the rest of the country has been in depression with wage freezes and cuts etc. we've been lucky enough not to be affected. The industry will recover but if you work in this game and don't plan for the dips you leave yourself in a bad position.


Sent from somewhere using something

[Sanjøy]

A lot will depend on how long the Arab's and Yanks keep squabbling. The price collapse has in most part been driven by the Arabs in response to Americas claims that it can drill shale oil and gas cheaper than buy in oil. In response the Arabs have driven the price down so that it's cheaper to buy open market oil than drill for it in the US and have also said they will not slow production to prop up the oil price as is what usually happens at times like these.
If there is one thing I have learned in this industry it's that the price is cyclical, all boom and bust every few years for whatever reasons. The price will rebound eventually, when is anyone's guess but the low oil price does impact all fronts but the expensive to produce fields/projects feel the effects first. Typically the North Sea is much more sensitive to oil price fluctuations than other markets hence the industry reaction.

It is not just the shale posturing, it is the weaponising of oil. Saudi are not going to go to war with Russia and the Septics over their easing on arch enemy Iran, however they can make them feel pain in other ways.

http://www.bbc.co.uk/news/world-middle-east-30289546