How bad has the oil glut hit the industry? Ask Halliburton

posted at 2:41 pm on January 26, 2016 by Jazz Shaw

Those of you who follow politics more closely than the energy industry may only be familiar with Halliburton from their connection with Dick Cheney, but they’ve been a major player in the oil and gas market (among many other things) for a very long time. As you might expect, a sustained period of record oil production and relatively stagnating demand, leading to the lowest oil prices in recent history, hasn’t been great news for them. How bad has it been? Well, as FuelFix reports… pretty bad indeed.

Oil field services giant Halliburton shed another 4,000 jobs in the final three months of 2015, as the Houston-based company continued to aggressively cut costs amid the worst oil crash in decades.

With the latest job cuts, Halliburton has reduced its global workforce by 25 percent, a total of about 22,000 employees since its peak in 2014. And more cuts could be on the way if a recovery in crude prices stalls, company executives said Monday morning.

“2016 is shaping up to be one tough slog through the mud and the industry is going to have to take it a quarter at a time,” CEO Dave Lesar said.

The company experienced a $28 million loss in the fourth quarter of 2015 which is particularly startling considering that they registered a more than $900M profit during the same period the year before. But they’re not the only ones feeling the pinch. As of last November we’d already seen approximately 250,000 layoffs across the country in the oil sector. Just before Christmas, Shell announced that they would be forced to shed 2,600 jobs in the first part of this year if the market didn’t improve. The pinch is hitting all across the board.

There’s no small measure of irony in the fact that you hear almost nothing from liberal, anti-energy activists about this story. They were busy all through the last election cycle insinuating that every new innovation or energy related project was all part of a grand scheme by “Big Oil” to get even more wealthy and take over the world. As it turns out, being too good at your job can have the opposite effect. The real tragedy to all of this turmoil is the job losses, though. We might have been able to avoid at least some of these effects if the Democrats hadn’t dragged their feet for so long on lifting the crude oil export ban, but at least we’re getting started on expanding our markets in that direction now. Also, we’ve needed expansions to our refining capacity for quite a while, but to say that the government has been less than supportive is a bit of an understatement.

Still, this is the way the free market operates. The energy companies know this and they’ll climb back into the fight as the market allows. The only question is how long it will take.

CrudeOil


Related Posts:

Breaking on Hot Air

Blowback

Trackbacks/Pings

Trackback URL

Comments

Cheap diesel is great for me.

Makes the value of the humvee (if you see the license plate “ROFLMPG” thats me) go up up up.

Defenestratus on January 26, 2016 at 2:44 PM

Hey, everdiso, tremendous?

The Schaef on January 26, 2016 at 2:45 PM

Wait a minute, oil glut? But didn’t they tell us we were just about out of the stuff?

major dad on January 26, 2016 at 2:46 PM

How bad has the oil glut hit the industry? Ask Halliburton

there is a simple truth Jazz. You can’t fix stupid. The higher oil goes, the more it destroys the economy, not the other way around. It takes at least two functional braincells to get past the propaganda of a trillion dollar industry to understand. Consequently, less than .001% of your readers will be able to comprehend.

oscarwilde on January 26, 2016 at 2:46 PM

Schlumberger has another round of major layoffs, 10,000 I think.

artist on January 26, 2016 at 2:46 PM

Wind Mill tax credit will have to be tripled to keep the spin spinning.

Al Gore’s Carbon Credits now a flea market dumpster item.

APACHEWHOKNOWS on January 26, 2016 at 2:47 PM

Gas hit below 1.50 here and with the number of miles we commute a day, it has been fantastic! Go suck it Dick Cheney and Halliburton. I will never forgive you for 2 trillion dollar Iraq quagmire and your $4 gas.

proverbs427 on January 26, 2016 at 2:49 PM

Better idea is to keep pumping all we can here and that puts the islamic death cult gold from oil flow way down ant puts them all out of business.

APACHEWHOKNOWS on January 26, 2016 at 2:50 PM

It is a trade war now.

APACHEWHOKNOWS on January 26, 2016 at 2:51 PM

How wonderful.

Well paid, non-college employees are out of work.

itsspideyman on January 26, 2016 at 2:54 PM

Well I guess I’ll be trapped in Academia for another couple of years…

TBSchemer on January 26, 2016 at 2:56 PM

I don’t know why conservatives are celebrating low oil prices. Many of the places and businesses hardest hit are almost exclusively conservative. I think it will also affect campaign contributions in the general election. I actually suspect the Iran deal was partly done to hurt conservative pockets even more.

legalimmigrant on January 26, 2016 at 2:57 PM

In California, with all their cap & trade taxes, it’s still often over $3 a gallon while it’s supposedly getting close to a buck elsewhere. Insane.

anotherJoe on January 26, 2016 at 2:57 PM

It is a trade war now.

APACHEWHOKNOWS on January 26, 2016 at 2:51 PM

It’s not. The artificially high oil prices that we had during the Obama administration were the result of a trade war. Now the trade war has ended and prices are normalizing.

Believe me, I stand to lose from this more than most people here, but I’m not willing to use the government to manipulate the global market and push oil prices back up.

TBSchemer on January 26, 2016 at 2:58 PM

There’s going to be a recession. It’s pre-ordained for this year, to clear the board for the next president. The so called free market is controlled by forces that direct the action.

cimbri on January 26, 2016 at 2:58 PM

The downside or the free market is that if you build a better mousetrap you’ll put the old mousetrap makers out of business. Cheap oil hurts the petroleum industry, but it helps everybody else.

myiq2xu on January 26, 2016 at 3:00 PM

Better idea is to keep pumping all we can here and that puts the islamic death cult gold from oil flow way down ant puts them all out of business.

APACHEWHOKNOWS on January 26, 2016 at 2:50 PM

Russia and Venezuela also. The government run oil companies will let infrastructure and technology suffer while the big wigs continue to get their cut. Private oil companies will get leaner and meaner.

Rancher on January 26, 2016 at 3:04 PM

Let’s see, they made 900 millionat year but lost 23 million this year. Somehow I think they’ll survive this downturn
It sucks for works but you knew you were working to increase suppy and this would eventually be the end result. It has hurt my work tremendously but we are out finding new customers to service. It sucks but you don’t ever complacent.

What will do is allow me to take better and longer vacations with my family due to the decreased cost of fuel. Just thinking about how many hundreds less I’m going to spend on gas for a near two week southwestern Adventure in Early June over what it would have cost last year is a delight. It adds more nights at hotels and dinners at restaurants. There’s always winners and losers.

TRB on January 26, 2016 at 3:05 PM

This is another example of only seeing what’s in fron to of you. My wife and I are now pocketing an extra $200 a month because of the oil glut. Thousands of owner-operator truck drivers are brining home more pay. Plastic products are cheaper. Everyone is winnning while a tiny segment of the population is losing.

This is called the Free Market.

Deckard BR on January 26, 2016 at 3:09 PM

When one part of the economy goes down, another seems to rise, especially when cheap energy is involved. I love cheap gas, but it does cost jobs, while allowing marginal businesses to survive. Double edged sword. One strength of our economy has been the freedom of choice and the ability to weave and bob, however, O’s regulations and lefty cronyism has skewed free enterprise and almost destroyed the ability of the economy to think on its feet. The elitist ‘pubs are no better. Cruz, now.

vnvet on January 26, 2016 at 3:09 PM

Having been through 25 years of gas wars in the wholesale and retail markets my sympathy factor is exactly zero. All this is is a ho hum gas war on a global basis. The new guy on the bloc is not fracking but the technology which made it possible which will keep going. When my supplier who was the largest oil company in the world at the time changed marketing and threw me out of business I never said a bad word about them and still don’t. I just took what I had learned and started another business. The loss of jobs in the oilfields is because they were artificial in the first place. Think buggy whips. Artificially high prices created those jobs so it should be no surprise they went away. My educated guess is crude will end up around $35 a barrel plus or minus if the free market is allowed to run. $20 a barrel not my problem. I sold plenty of gas below cost and my supplier never offered to help. Nor did I ask. It’s called the free market. Buck up big boy.

CW20 on January 26, 2016 at 3:11 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

This is another example of only seeing what’s in fron to of you. My wife and I are now pocketing an extra $200 a month because of the oil glut. Thousands of owner-operator truck drivers are brining home more pay. Plastic products are cheaper. Everyone is winnning while a tiny segment of the population is losing.

This is called the Free Market.

Deckard BR on January 26, 2016 at 3:09 PM

Truer words were never spoken.

CW20 on January 26, 2016 at 3:13 PM

Any economic news has upside and downside…..the low oil prices everyone are cheering could be bad news….price being a function supply & demand. IF the price fall is a result of over-supply it is good news. If it is the result of slumping DEMAND well it’s BAD NEWS, because that spells recession….low price plus China’s collapse & the bad news on the Baltic Dry Index would tend to suggest not robust GROWTH, but economic slow down.

Of course I’m only a Neo-Con Statist, Howler Money what do I know?

JFKY on January 26, 2016 at 3:14 PM

Still, this is the way the free market operates. The energy companies know this and they’ll climb back into the fight as the market allows. The only question is how long it will take.

But this isn’t entirely driven by the free market. This is driven by OPEC boosting production , Saudi Arabia attempting to capture additional market share, and Iran re-entering the oil production world. This is all happening during a period of global oversupply. In a true free market OPEC, and SA would cut supply to stabilize the price. Instead the opposite is occurring because their intentions are to drive US companies out of business. If it were foreign companies doing this on their own, that would be one thing. That isn’t the case. The foreign companies can operate at a loss indefinitely when they are propped up financially by the full weight of their respective governments.

There is a global oversupply of oil. OPEC doesn’t look like it is going to cut production when they can drive a stake through the heart of many smaller US based oil companies.

This is oil producers, who are propped up by their government, overproducing and driving down prices. The oil producers in the OPEC countries can afford to operate at losses when they have the financial backing of their governments. The US companies cannot.

This isn’t oil companies competing. This is Oil producing countries competing with American Oil companies. Exxon, Chevron, and the Haliburtons can survive for a little while in this environment because they are large enough to compete with small countries. Smaller oil companies are doomed, and our government refuses to step up and protect American businesses when other governments are propping up their oil producers when they dump their oil at prices below the cost of production.

China does the same thing in the steel industry. Again, our government refuses to fight and make them play by international trade rules.

US companies can compete with any company in the world in any economic sector. However; they cannot compete against entire governments.

airupthere on January 26, 2016 at 3:14 PM

My gas price hasnt gone down. It’s still 2.89/gal.

Blake on January 26, 2016 at 3:16 PM

In a free market, prices should never fall below the cost of production.

How can we import oil cheaper than the cost of production at home?

Foreign oil is flooding the market with excess supply and losing money doing it. Their governments will keep them afloat while they drive US companies out of business. Once the competition shrinks, the prices will rise again as they cut supplies.

airupthere on January 26, 2016 at 3:17 PM

Remember back in October when Obama was negotiating Iran’s return to the oil market and the GOPe was considering selling off part of the strategic petroleum reserve to pay for the spending they were proposing? Fun times in DC isn’t it?

DanMan on January 26, 2016 at 3:20 PM

This oil price crash is so much worse than most people realize. Right now, if you’re an oil state, you are screwed:

Trinidad gets roughly 45 percent of its gross domestic product and 80 percent of export revenue from the energy industry. In June 2014, the price of Trinidad’s benchmark crude was $106 per barrel and the government had drawn its 2015 budget anticipating $80 a barrel, but the price has plummeted to near $30. Prices for liquid natural gas, Trinidad’s main export, have declined by some 45 percent.

Rowley, who took office in September, has warned that the country will have to go to the IMF again if it doesn’t make the right adjustments now. Trinidad and Tobago has few local industries so the economy is almost entirely dependent on foreign exchange.

We need it for food, medicines, clothing, books and education, cars, trucks and tractors, and computers. We are very dependent on foreign exchange to sustain our economy and our standard of living,” Rowley said.

And it’s not just Trinidad. Ecuador is screwed; Venezuela is screwed; Nigeria is screwed. And those are only the ones I’ve taken time to look at. Any state in which oil is a substantial part of the country’s GDP is going to be tipping into recession if they haven’t already.

There’s going to be a recession. It’s pre-ordained for this year, to clear the board for the next president. The so called free market is controlled by forces that direct the action.

cimbri on January 26, 2016 at 2:58 PM

The recession is coming because the Central Banks have spent the last seven years trying to levitate the markets with quantitative easing and other financial wizardry, and the rocket fuel from those schemes has finally been expended. China and Latin America are already getting crushed and we are not far behind.

Doomberg on January 26, 2016 at 3:21 PM

Venezuela Heads for Default amid Tanking Oil Prices
https://panampost.com/sabrina-martin/2016/01/22/venezuela-heads-for-default-amid-tanking-oil-prices/

Torcert on January 26, 2016 at 3:28 PM

My gas price hasnt gone down. It’s still 2.89/gal.

Blake on January 26, 2016 at 3:16 PM

That’s ‘cuz the state of CA gets away with price fixing.

antipc on January 26, 2016 at 3:29 PM

The Saudis are still the low-cost producer, and can pump oil out and import it to the U.S. at less cost than it can be fracked out of the ground here. But the Saudis have two problems:

1.) What it costs them to get it out of the ground, and what it costs them to get it out, and make enough of a profit to bribe their citizens with free stuff to keep them happy are two different things. So they can only undercut U.S. frackers for so long and live on their current cash reserves before the oil hits the fan;

2.) They may have to hold out longer than they think, because many of the U.S. oil fracking zones are new development not currently held by production. That means companies have to drill before their leases (normally three years) are up, or they lose the mineral rights. And with horizontal drilling, the initial well production numbers can be huge — 1,500 to 2,000 barrels a day.

All those high-volume wells that are still coming in, combined with the struggling U.S. economy, are what’s continuing to glut the U.S. market. Combine that with the world economic slowdown, and that’s why prices are low right now, and figure to stay low for a while. That might be in the Saudis’ interest now, in hopes of producing U.S. bankruptcies, but it’s just going to transfer small oil company’s mineral rights to be bigger producers, and they’re not going bankrupt. If they have to keep producing at $20-$30 a barrel they will, and the longer it continues, the closer Saudi Arabia will get to running out of fun-money for the masses.

jon1979 on January 26, 2016 at 3:33 PM

Go suck it Dick Cheney and Halliburton. I will never forgive you for 2 trillion dollar Iraq quagmire and your $4 gas.

Paul Begala on January 26, 2016 at 2:49 PM

LOL! You must mean the “Iraqi quagmire” that Democrats Hillario Clinton and Lurch Kerry signed off on…funny stuff you’re drinking there, Paulie!

Some background for ya, Forehead:

Democrat President Lyndon Johnson climbed into bed with Halliburton 6 years before Dick Cheney was even born. And he never left.

F-#1.

Democrat pResident Bill Clinton gave Halliburton several no-bid contracts during his own non-UN-sanctioned War of Choice in the mid 1990s.

F-#2.

Democrat Sugar Baby George Soros bought over $60 million worth of Halliburton in 2006. That’s why you idiots on the Left are now obsessed with the Koch Brothers!

F-#3.

And in 2008 and again in 2012, many Halliburton employees, including a Senior Vice President, made very generous donations to O’bama, according to OpenSecrets.

F-#4.

But thanks for admitting that Dick Cheney is still living inside your head. He should be paying YOU rent!

F-#5.

Del Dolemonte on January 26, 2016 at 3:34 PM

I find it interesting that Obama needed petroleum to be high to push his wind/solar green energy dream he pissed our taxes into and now it is nearing an all time low. Kind of like gun control he wants to enforce but gun sales are at their all time high. Can anyone see the irony of this loser and those that still think he is successful. The odds are Iran will be launching its first nuke at the US in a year or two and all the illegal aliens will flee.

tej on January 26, 2016 at 3:36 PM

Halliburton. I will never forgive you for 2 trillion dollar Iraq quagmire and your $4 gas.

proverbs427 on January 26, 2016 at 2:49 PM

A progressive brain on display. Halliburton is a publicly traded energy company. It did not start the Gulf War, nor did it participate in it.

$4 gas was an artifact of the Obama economy and a dearth of refining capacity in the US. And again, nothing to do with Halliburton.

In a previous age, you would have been blaming witches for your cow going dry. Go ahead- let go of your superstitions and grasp reality- it might sting for a bit, but you’ll be better for it.

Dolce Far Niente on January 26, 2016 at 3:37 PM

We can thank our pals the Saudis. Rather irate at other countries cutting into their profits, they ramped up production as well, knowing it would cause a collapse in oil prices. Thing is, they also know American and Canadian companies need oil to stay around $40 a barrel just to break even, whereas oil can drop into the single digits before the Saudis start losing money. Of course, even the Saudis are now feeling the hurt, but it’s hard to compete with a country whose labor costs are next to nothing.

dorkintheroad on January 26, 2016 at 3:38 PM

One of the biggest pluses is that it is hurting the Saudis. They won’t have the excess billions to build mosques in non-Muslim countries and spread extreme Wahhabism.

bw222 on January 26, 2016 at 3:42 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.
.
weedisgood on January 26, 2016 at 3:13 PM

.
Once again I’m willing to concede that “I don’t know eveything” … but can ANYBODY (includes everdiso) explain how exporting oil is causing Americans to lose their jobs?

listens2glenn on January 26, 2016 at 3:43 PM

That might be in the Saudis’ interest now, in hopes of producing U.S. bankruptcies, but it’s just going to transfer small oil company’s mineral rights to be bigger producers, and they’re not going bankrupt. If they have to keep producing at $20-$30 a barrel they will, and the longer it continues, the closer Saudi Arabia will get to running out of fun-money for the masses.

jon1979 on January 26, 2016 at 3:33 PM

Good comment. You can already see that the Saudis are getting squeezed with whispers of a Saudi Aramco IPO to provide the Saudi government with a liquidity injection: http://www.zerohedge.com/news/2016-01-07/saudi-economy-implodes-fascinating-solution-emerges

Doomberg on January 26, 2016 at 3:45 PM

Once again I’m willing to concede that “I don’t know eveything” … but can ANYBODY (includes everdiso) explain how exporting oil is causing Americans to lose their jobs?

listens2glenn on January 26, 2016 at 3:43 PM

The US exporting crude really only has limited impacts on the price. The principal causes of the price crash are:

1. A massive price bubble
2. Huge overpumping by Saudi Arabia
3. Declining worldwide oil use due to the recession, which never really ended
4. Declining oil use in China, which was one of the principal drivers of the oil boom of the last decade

Doomberg on January 26, 2016 at 3:48 PM

My FIL’s wells in Indiana need oil at $26 to break even. He cut ’em off last week. His dad drilled them in the late ’30s and they weren’t doing much anyway.

DanMan on January 26, 2016 at 3:49 PM

Once again I’m willing to concede that “I don’t know eveything” … but can ANYBODY (includes everdiso) explain how exporting oil is causing Americans to lose their jobs?

listens2glenn on January 26, 2016 at 3:43 PM

Somehow HA draws defective trolls.

tej on January 26, 2016 at 3:52 PM

The Saudis tried to kill America’s production (cancer to the Saudis) by taking chemo treatments (killing the price of oil temporarily). The problem with chemo is that it can kill the patient as well.

Chemo is always temporary, one way or another. Either the cancer or the patient dies.

I’m watching the oil companies, the pipeline companies and the oil service companies. Have some positions and ready to take more as things develop.

OPEC starting to rebel, Saudis running down their reserves.

There is an oil price that supports economies and allows affordable transportation. That’s where we are headed soon.

My “soon” may be different from others’ take, I look at things in years at a time, not weeks or months.

Meremortal on January 26, 2016 at 4:01 PM

Once again I’m willing to concede that “I don’t know eveything” … but can ANYBODY (includes everdiso) explain how exporting oil is causing Americans to lose their jobs?

listens2glenn on January 26, 2016 at 3:43 PM

It doesn’t. This is a winner three fold for America. It creates jobs here. It keeps operating expenses in America and maybe in the long term the best thing going is we are starving Islam by taking sales and so cash away. My guess is much if not most of the immigration from Islamic countries is they can’t afford to feed them. They should have to stay there and starve or change their own countries. Islam is failure in any modern society. Change or starve.

CW20 on January 26, 2016 at 4:03 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

How do you figure?

The Schaef on January 26, 2016 at 4:10 PM

Fun fact here in NC: $0.53 of every gallon of gasoline sold is tax. If the cost of fuel (in my area) is $1.99, that means I am paying 27% tax on every gallon. As the cost of fuel declines further, the percentage of tax climbs as the tax is pegged per gallon and not as a percentage of sale.

Another fun fact: Low fuel prices adversely affect primarily the producers in the energy sector. The cost of goods in general drops for items like steel bars and aluminum, transportation and freight costs. What the oil producers lose is more than made up in the rest of the economy that benefit from the lower costs.

Turtle317 on January 26, 2016 at 4:12 PM

As you might expect, a sustained period of record oil production and relatively stagnating demand, leading to the lowest oil prices in recent history, hasn’t been great news for them.

There’s a bit more going on here, as I’m sure Jazz fully understands.

airupthere on January 26, 2016 at 3:14 PM

jon1979 on January 26, 2016 at 3:33 PM

Wars, trade embargoes, Obama’s tools restricting production, and largely OPEC and the Saudis managed to artificially restrict supply for a long, long time. While OPEC and the Saudis were milking the market they also made it profitable for companies to invest in searching for more reserves and developing technology to recover otherwise unprofitable resources. The global economic downturn began to reduce demand and despite Obama’s best efforts American production began to surge putting downward price pressure on the market. The Saudis failed to appreciate what was happening until lower prices began to bite them. They reacted by increasing production in an attempt to retain market share and to make the newer sources ( which produced oil at higher costs than theirs) uncompetitive, and to make investment in new recovery technology dry up.

They reacted too late. Prices began to crash and they found themselves into pushing production to make up in volume what they were losing in inflated profits to no avail. the investments had already been made in the technologies and fields development. Those sources will continue to produce. (It’s better to get something from those investments, even at a net loss, than to shut them down and lose the entire investment, as long as the current cost of production ( not including the money invested in development) remains below the market price. The Saudis and OPEC lost control of the market and were no longer able to artificially restrict supply. Oil is now seeking it’s (more or less) natural market price.

Yes, there will be some significant market disruptions and serious consequences for anyone invested in or dependent on the oil market at artificially inflated prices.

Consumers will benefit greatly. One other good thing: Lower oil energy prices knocks the Hell out of the artificially inflated value of “alternate” energy sources and make government subsidies for their development even less rational. Since much if not most of this government money was either wasted on technologies that weren’t competitive with oil even at inflated oil prices or essentially stolen by Obama’s cronies who got the big government subsidies, the “green energy” scam is taking a big hit too.

novaculus on January 26, 2016 at 4:13 PM

Wait…..i thought Halliburton was the Evil Empire, making gazillions of dollars at the behest of cheney, etc….

Indiana Jim on January 26, 2016 at 4:14 PM

novaculus on January 26, 2016 at 4:13 PM

Well put, sir.

Turtle317 on January 26, 2016 at 4:16 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

o_O

antipc on January 26, 2016 at 4:18 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

How do you figure?

The Schaef on January 26, 2016 at 4:10 PM

It will be cheaper for oil companies to bring in foreigners to get the job done.

weedisgood on January 26, 2016 at 4:26 PM

It will be cheaper for oil companies to bring in foreigners to get the job done.

weedisgood on January 26, 2016 at 4:26 PM

What job?

The Schaef on January 26, 2016 at 4:32 PM

It will be cheaper for oil companies to bring in foreigners to get the job done.

You have got to be kidding. So, your argument is the increase in foreign riggers and oilman in the US oil fields? and the Republicans caused this by lifting the ban on selling oil overseas?

tej on January 26, 2016 at 4:33 PM

Good comment. You can already see that the Saudis are getting squeezed with whispers of a Saudi Aramco IPO to provide the Saudi government with a liquidity injection: http://www.zerohedge.com/news/2016-01-07/saudi-economy-implodes-fascinating-solution-emerges

Doomberg on January 26, 2016 at 3:45 PM

That’s because they need gold.
Why do they need gold?

To back a new petrodollar after the US Dollar collapses.

LoganSix on January 26, 2016 at 4:50 PM

You have got to be kidding. So, your argument is the increase in foreign riggers and oilman in the US oil fields? and the Republicans caused this by lifting the ban on selling oil overseas?

tej on January 26, 2016 at 4:33 PM

Only if they speak spanish. That’s the only language used in the field these days.

Who is John Galt on January 26, 2016 at 5:06 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

Wig is dumb. He will be dumb tonight when he goes to bed. He will still be dumb tomorrow when he wakes up. Marijuana does that to you. It doesn’t matter what the economy does, he has the answer and he knows exactly who to blame.

Most of us in the oil patch expect the ups and downs. We have had them for well over a hundred years. Aerospace has the same ups and downs. These industries hire workers by the handful when times are good, but lay them off by the hundreds or thousands when times get bad. The people in the oil patch and aerospace expect that. Of course, you never see it in the media when the hiring by the handful happens, but when the layoffs occur, the jakals come out to feed on the carcass. One good thing is the better people in these industries really try to be the best and as valuable as they can be to be kept on. Doesn’t always work, but often does.

Old Country Boy on January 26, 2016 at 5:47 PM

Thinking “on a quarterly basis” is what got the dumbasses in trouble in the first place.

GarandFan on January 26, 2016 at 6:04 PM

This is another example of only seeing what’s in fron to of you. My wife and I are now pocketing an extra $200 a month because of the oil glut. Thousands of owner-operator truck drivers are brining home more pay. Plastic products are cheaper. Everyone is winnning while a tiny segment of the population is losing.

This is called the Free Market.

Deckard BR on January 26, 2016 at 3:09 PM

Truer words were never spoken.

CW20 on January 26, 2016 at 3:13 PM

That sums it up well enough.
The same can be said for that Disney lawsuit.

Count to 10 on January 26, 2016 at 7:12 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

NOT True. There is a market for very light sweet shale oil that we produce out there in the world; just not enough US refineries were designed to use it; so it piled up in storage while the refineries continued to import from Venezuela when we could not export our oil. Permian shale oil going to Mexico for blending was already happening, now it can be done all over the world. WTI was cheaper than Brent because our refineries needed heavier crude. Then the ban was lifted and all of a sudden WTI and Brent are about the same price because Brent went down. The Saudis had to lower their price around the world to keep our shale oil out and block the Iranian oil Obama released.

The next time the Middle East blows up or Russia tries to blackmail Europe into allowing it to conquer and annex its western neighbors, Europe may have US oil and US LNG to fall back on and will be more able to defy Putin. This will create lots of US jobs down the road.

KW64 on January 26, 2016 at 7:14 PM

One of the biggest pluses is that it is hurting the Saudis. They won’t have the excess billions to build mosques in non-Muslim countries and spread extreme Wahhabism.

bw222 on January 26, 2016 at 3:42 PM

Hurting Iran and ISIS profitability is probably more important.

Count to 10 on January 26, 2016 at 7:22 PM

Don’t forget congressional republicans have also lifted the ban on selling American oil overseas.

More Americans jobs are about to be lost because of this.

weedisgood on January 26, 2016 at 3:13 PM

How do you figure?

The Schaef on January 26, 2016 at 4:10 PM

It will be cheaper for oil companies to bring in foreigners to get the job done.

weedisgood on January 26, 2016 at 4:26 PM

What a spectacular non sequitur. There is no relationship between exporting oil and who is hired in the oil fields.

KW64 on January 26, 2016 at 7:23 PM

The senior population, those on Social “In”Security have been affected by low crude prices, no cost of living increase for 2016.

woodhull on January 26, 2016 at 7:25 PM

proverbs427 on January 26, 2016 at 2:49 PM

Sorry, dude, but you don’t know what you’re talking about.

Cheney doesn’t own any Halliburton stock…and hasn’t since he was elected Vice President.

Solaratov on January 26, 2016 at 8:21 PM

you would think with the price of oil getting lower and lower the economy would be on fire. the economy is a lot worse off then the pundents say.

RonK on January 26, 2016 at 9:11 PM