Natural gas prices are not expected to recover anytime soon. Natural gas is expected to remain over produced due to it being a byproduct of shale oil production. This translates into cancellation of any pure natural gas drilling and development. It will take time to phase out coal and swap power plants over to clean cheap natural gas. Natural gas producing areas will continue to help support the company as a whole while minimal capital will be allocated to maintain production. With reduced spending and activities it is anticipated that fewer support personnel will be required. With this in mind why maintain large offices and support personnel in multiple locations when these tasks can be accomplished much more efficiently at central location?
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Agree with original post. Gas production operations will continue to be more lean over the next couple of years running on a skeleton company staff on site. Engineering and support functions will be run from central location. Today's technology allows for a more efficient operation by such a structure. Continued low gas price dictates such a company structure.
But...but...I'm ENTITLED to my $160k a year O&G job!! I don't care what you petty consumers have to pay to keep the lights on! I have a LIFESTYLE to support, DAMMIT!!
I think this is a secular change, it takes decades to shift things around