There’s a guy saying he’s going to get more oil production to happen and energy prices to drop by half in a year. If you are in the oil & gas industries, you don’t want $40 oil. The industry will be hurt, layoffs will happen, production will fall, and prices will rise. This web site will get real active with real layoff news.
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How do y’all think this would affect the acquired Pioneer people?
Politicians say shot to get elected. Doesn’t believe it will happen. Do you believe everything politicians promise you?
Both the potential for layoffs and oil prices will remain the same.
Don't forget we'll get a big nice 50% tariff on all oil made in other countries. Even our own Guyanese Honey Sweet will remain around $80 a barrel, at least in the USA.
Someone forgot about the real layoffs in Dec 2020. Those were after the PIPs from the 2020 PDS. Those PIP folks were gone Nov. 1 a month before the layoff notifications
@tum+1vd8qxD4 The increased PIP targets in 2020 were not off cycle. They occurred during the normal performance cycle. We will likely not have layoffs in between PDS seasons as we have never had them at that time. We will see any bloodbath next year July-Sept timeframe.
My bet is that sustained $2 gas at the pump leads to 2 to 4 million bbls per day less production in the US. Oil companies are not going to lose money to satisfy US desire for cheap gasoline.
But Exxon wasn't bottom of the pack with such excess overhead, supervision and management in the 2010s like it is now. These last 5 years of increasing the EM competitiveness has perversly ended up with a top heavy structure that will require further cuts (at the bottom obviously) during the next downturn.
We had a layoff at the end of 2020 and early 2021. The revised ranking system was rolling out at the same time. The original NSI target was 3%. The company increased the NSI mandate to 8% coincident. Many will remember that the CEO and senior managers turned themselves inside out to say that the 8% had nothing to do with a layoff.
We didn’t have off cycle layoffs when oil was in the $40s back in mid-late 2010s or when oil went negative during Covid. I’d expect a potential increase in required PIP % during the upcoming performance cycle, but we wouldn’t feel the effects of that until next year.
In theory… the reason we have cut so many people during the last couple years of record earnings is so that we can manage these times with lower oil prices. But they’ll probably just continue to cut.