Thread regarding ConocoPhillips layoffs

I hadn't considered how oil gluts in the past affected the markets. Thanks for the info! I'll have to check it out.

I couldn't agree more. Ryan talks about how Saudi is not cutting production.

Let's get real; are we reducing production? No.

Why should OPEC reduce production when the North American producers that caused the excess oil in the market have done nothing?

US companies can't reduce production as they are leveraged to the banks and production is one factor considered when banks provide financing and a reduction in production would signify dire circumstances.

We will just have to ride this out and see where it takes us.

Odd that Saudi Arabia would be obligated to cut production to protect the revenues of North American producers... The Saudis have in excess of $1 trillion USD reserves. ConocoPhillips has a credit line and assets to sale with zero money in the bank.

The new production is the North American production. Time for the ConocoPhillips to look in the mirror and understand the overproduction is within North American and not elsewhere.

You were promised wine and roses? And you believed that? OMG, I thought we were hiring smarter people than that. And get real, and look at competitor industries to compare your salary vs theirs. Nobody paid more than the oil industry. The challenge is upon you now. Ever heard of high risk, high reward? Also read up on OPEC countries. While they might be able to produce oil for cheap, they cannot pay for their social programs with that kind of price and revenue. So who cares about cost to produce for them? When the monarchy starts cutting back on goodies and subsidies for the citizens, all hell is going to break loose.

Hey Anonymous150928, pull your head out of your ass. Historically Saudi Arabia was the swing producer who would cut production to keep prices propped up. But this time they had a legitimate concern about losing market share. Saudi Arabia has set new production records as of late, and are flooding the market. They are purposely driving the price down to force out the higher cost producers. The vicious circle is now that oil prices are so low, every country is pumping like crazy to get what money they can, because the countries (Russia, Venezuela, etc.) like companies set their fiscal budgets based upon $100/bbl oil. Russia is cutting everything back except military spending and Venezuela is borrowing money from other countries to prop up their social programs.

No bad management on the part of the North American producers. The North American producers bet the farm on current and future $100 a barrel oil and lost the bet. OPEC is not flooding the market. OPEC is producing no more, no less. The North American producers are flooding the market and have been flooding the market. Demand did not exist for the oil at $100 a barrel and so the fall in prices. OPEC produces oil for $10 a barrel. North America produces oil for $50 a barrel. The promised wine and roses were not delivered by the management at ConocoPhillips to the employees hired within the last 5+ years.

This time is worse