So....how is it in your field?

[KarenBravo]

We all know that there has been a massive downturn in our industry. The oil price now is less than 50% of its high last year.

How has your field of operations been affected?

I'm in seismic surveys. All the contractors have stacked vessels and laid hundreds of people off. What work they are doing is close to cost.

I'm self-employed and my day rate is down by approximately 15%.

My next job will be a 20% decrease.

Next year is going to be even worse as the budgets are usually set close to the new year.

Have 40 years in the biz and have never seen it so bad.

[Soutpeel]

Nothing has changed for me personally, yes the powers that be are pushing cost cutting exercises and efficency improvement, but hasnt hit my personal bottom line as yet

Edited August 14, 2015 by Soutpeel

[KarenBravo]

No employees have been affected on their pay because pay doesn't usually go down.

But, most people are crapping themselves about further redundancies.

As I'm self-employed, I don't have to worry about getting laid off and finding another job, but, it has hit me in the pocket.

Better that than being unemployed, I reckon.....

[dunks]

As a freelance (upstream) contractor, and I know I speak for many of my colleagues, there has been nothing in our field. No crops or harvest whatsoever.

Most of us have had no work in 2015.

[bignbad]

Lots of guys looking for work just now, I finished in Qatar, like lots of others. early this year and nothing since.

Got to ride it out and drink more beer!!!

[UncleRico]

I work for a drilling contractor and they have been doing things like cutting premiums and bonuses. Also running people off more than usual because they are so easily replaceable at the moment. Luckily my rig has two years left on its contract but we have stacked and scrapped at least 15 rigs in the last year.

[stoneyboy]

It has been slow for me only since June when I got paid off.

The black trades in the UK are really struggling at present,there is no rig yard jobs,the shutdowns have been slow coming and the amount of rigs being warm/cold stacked in the UK sector has increased dramatically.

I am now into my 7th week off but that is personal choice as I've took the opportunity to have some extended time with my family after being on 21/21.

I am looking to head back to the UK very soon to top up so that I can return home here for the winter.

Unless I'm on rotation I generally detest working in the UK/Europe in the winter.

I've had a few emails and calls but nothing has took my fancy,although in times like these beggars can't be choosers.

The only fall back for me is working in fab yards or power station outages etc but I've been there done that and don't but will if I have to resort back to it and a pay cut.

I

[Andrew65]

I am in land seismic, got laid off from Iraqi Kurdistan in November (Chevron pulled-the-pin on two crews there - the oil price was heading south, as ISIS were heading north!).

Some of my colleagues have similar experiences/no work or prospects. The last that I heard was that Global Geo/EAME had no further work after the last GazProm job finishes in Kurdistan in a few months.

[Stevemercer]

And I would have thought the price will stay south for at least another year or two. Iran will be back pumping/selling later this year as sanctions ease off and OPEC won't cut back production. The USA shows no signs of slackening off oil/gas shale production despite the tight margins and high US dollar. Obviously OPEC want to shake this market right out, but it's hanging on like a leech.

All this means that exploration budgets will be at an all time low this financial year and production costs will be trimmed as far as they will go.

[a10ams]

Full steam ahead in Azerbaijan. The main operator is squeezing the contractors on costs and it's making it's way to the employees. We're down about $100 a day but there is no slow up in the work.

Two more years and I'm done, forty years on a rig floor is enough for anyone!!

[whatawonderfulday]

Had over 40 years experience, seen 3 downturns, but nothing like this. Big impact on the service industries, engineering consultancies etc. Previously you could predict an upturn but this time not the case. With Iran's sanctions being lifted then in a few years you will see them producing with one of the lowest global lifting costs. China's expansion has faltered so the demand is depressed. The secondary undefinable impact of businesses that relied upon O & G workers spending must be significant also.

The good times I'm afraid won't return sometime soon.

[rodroy]

Never seen it so bad?

Where were you in 1999 when the oil price dropped to 9 usd/bbl?

Blood in the streets then!

Companies quick to lay off blindly count on people running back to them when business rebounds!

They're in for a shock when offers are refused point blank!

[elgordo38]

As a freelance (upstream) contractor, and I know I speak for many of my colleagues, there has been nothing in our field. No crops or harvest whatsoever.

Most of us have had no work in 2015.

Its nice to hear the truth from the "boots on the ground" rather than all the rumors flying around and government stats. Thank you sir.

[elgordo38]

And I would have thought the price will stay south for at least another year or two. Iran will be back pumping/selling later this year as sanctions ease off and OPEC won't cut back production. The USA shows no signs of slackening off oil/gas shale production despite the tight margins and high US dollar. Obviously OPEC want to shake this market right out, but it's hanging on like a leech.

All this means that exploration budgets will be at an all time low this financial year and production costs will be trimmed as far as they will go.

I was reading that they are really wringing out the costs and reducing well operation time on fracking in the USA. Some frackers can still make a profit at $40 a barrel and some claim more cost cutting is coming. Some say they can even break even at $10 a barrel which I find hard to believe but the world is really on a tech binge right now. Another reason that production in fracking is not dropping off fast is that some operators are pumping at a loss as an option rather than file bankruptcy for now. They cling to the hope that the oil market will turn around. I hear there is about 800 billion tied up in loans to frackers and if they fail enmass look out. I just hope there is not a bunch of old retiree coupon clippers that could get burnt in this mess.

Edited August 15, 2015 by elgordo38

[KarenBravo]

The agency I work through has rather optimistically predicting end of 2016 for things to pick up. Even if that turns out to be the case, then, that is still over a year.

Marine seismic is still relatively healthy compared to land seismic. The two guys I know that haven't worked in almost a year are land seismic reps.

Many of the older consultants have refused to work for the reduced daily rates and have brought forward their retirement plans.

Those people that have kids and mortgages are the ones that are getting hurt. Old farts like me with no mortgage and live in a developing country where costs are cheaper, will be able to wait this slump out......with a bit of budgeting.

Most of the previous slumps were due to a fall in demand of oil, usually due to a depressed world-wide economy.

This is the first slump I've seen where it's due to supply. There is just too much oil already out of the ground.

Edited August 15, 2015 by KarenBravo

[Strikerxxx]

In W. Texas in 2011 they punched a hole a day. In March of this year the rig count stood at 300, down from 600-700 the year before. BUT, the oil companies were rigging up again as with the price of oil dropping, so were the cost. They were saving at least 2 Mil per rig. The downturn allowed them to get rid of the less productive and rebuild their companies. My kids all still live out there, all work in non oil production jobs and see no impact on them. Matter of fact they are glad that the masses have thinned some. I have several friends that still work in the patch and they haven't slowed, actually several have started their own business and are doing well. I was out there from the bust of the early 80's to 2013. They are starting to figure out how to set up for the long hault. Also around 2011 the found an oil reserve under West Tx going north, larger than all know oil reserves in the world put together. It is 30,000 ft down. They can punch a hole to it but the problem is getting enough pressure to get it out. That is the number 1 R&D out there now.

[Neilly]

I am in land seismic, got laid off from Iraqi Kurdistan in November (Chevron pulled-the-pin on two crews there - the oil price was heading south, as ISIS were heading north!).

Some of my colleagues have similar experiences/no work or prospects. The last that I heard was that Global Geo/EAME had no further work after the last GazProm job finishes in Kurdistan in a few months.

Am hearing the same...I left Erbil a year ago tomorrow and haven't had anything since. There are rumours that things will pick up in 2016 but I'm not holding my breath.

[KarenBravo]

Definitely not 2016. All the CAPEX are done around new year.

Soonest will be early 2017 and I feel even that is optimistic.

[STUDMEYER]

Upstream - T'was in Kurdistan since early 2011. Layed off in Aug 2014 after we evacuated for ISIS, came back in January as things were ramping up, then laid off again in June as plans fell through and rig contracts were not renewed. Politics on the block playing a large role in the future operations. Still getting paid for the Oil.

Interesting point.... Some left my company to go to another for more money. That marked the peak of the market in kurdistan and they are now like me out of work or back in the mother land working for peanuts.

Lots of job offers from a dormant profile on rigzone to go work B2B with "regional expats" but the pay is very low. Also had an offer for a jackup in Qatar but couldn't make the start date (yes i would have worked offshore.. lol) - day rate was about 30 less than in Kurdistan, and I know I was on the lower end of the spectrum in Kurdistan. A few idiot head hunters sniffing around without a sniff or a real job to offer. The big difference I've noticed is the number of unsolicited idiot head hunter emails and phone calls has dropped significantly. I attribute this to all those goofs being laid off.

As for me, I'm relaxing. Luckily due to some hard work early on, our family is good for a few years. Will start looking again seriously in the new year unless something lands in my lap.

I'll take the opposite side of this being a bad thing for us rotators. Iran is opening... 350 billion in investment needed. Drill they will. The Emirates are firing up big time as well as Saudi. They are all ramping up into the glut so that means lots of work in that region of the world.

Lastly the great crew change etc...

Good luck

Rgs

SM

Edited August 16, 2015 by STUDMEYER

[HenryC]

I've been creaming a gas development in SEA for the last 3 years and am being put out to pasture at the end of October.

Our day rates have not been cut for the want of maintaining a "team" to the end of a projects with spiralling cost issues. Sweet!

That aside, for the G&G sector, they is little to nothing about, and nothing much as yet planned for 2016.

Good timing for me I was planning a break anyway. Even better I am looking forward to living "The Good Life" - more recycling, growing our own veggies and a general cut down on spending.

I have to say, it is the perfect excuse and I am a little excited to see how my Mrs can handle living on a modest income allowance - haha. This is going to be fun!

She can get her ass out to work as well.

I am also considering home schooling the 2 kids - give me a new goal. Stay at home dad! If she gives me a few beer coupons I will be a happy man.

Some are going to be hurting tho. In the Oil and Gas game you have to plan for downtimes.

I'm trying to be positive, the downturn could be a good thing in terms of recalibrating the workforce. I have felt for some years now there are some riding the wave into supervisory positions without the work experience/knowledge to back it up.

Or it could backfire and we lose what little of the highly experience workforce left?

Could be worse, could be freezing in UK. Pop another coconut and look on the bright side.

Cheers,

Henry

[sommsomm]

Hello All,

Are there any reservoir engineers/ petrophysists etc. on here who could help answer a question I have?

The Shaikan - 6 well that was drilled on the flank of the Shaikan block in Kurdistan had water behind pipe, but the cores were bleeding oil all the way down, the auditors ERC Equipoise have set an OWC level at 1450m across the 25 km reservoir until a sidetrack can be done, the well was drilled two years ago. The well is a few measurable degrees off-set from the main block, which has 9 wells producing 100% dry oil with no gas breakthrough from 4 shallow Jurassic reservoirs Sargelu, Alan, Mus and Butmah. The deeper Jurassic Butmah is producing oil and sits in the middle of the OWC (I don't know how deep they are producing from down in the Butmah).

The Company says the water behind pipe was due to a bad cement job?

Q:

If the cores are bleeding oil all the way down past the 1450m OWC, how likely is it the auditor/ Company is right/ wrong?

There are currently 4 major companies in the data rooms (Exxon/ Chinese) who are interested in buying part/ all of the Company - how can they put a price on the Company if they don't know where the OWC is for sure?

Ryder Scott and Dynamic Global Advisors had the LKO at 2230m.

Would be very grateful for any thoughts.

[STUDMEYER]

GKP. Kurdistan is notorious for bad cement jobs. This story could be the same from any of the operators there and is not surprising.

[sommsomm]

GKP. Kurdistan is notorious for bad cement jobs. This story could be the same from any of the operators there and is not surprising.

Hello STUDMEYER,

Are bad cement jobs because of the drilling crew or because of down hole pressures etc?

What's your thoughts on the cores bleeding oil past the OWC that I mentioned?

Thanks.

[KarenBravo]

Maybe you could start a new thread?

This thread is about the down-turn, not about technical problems.

[STUDMEYER]

... On topic, i just another call from from a respectable recruiter. ADCO is still hiring lots of people. All employee stuff. Pay is salary in the "regional expat" range.

Rgs

SM

Edited September 2, 2015 by STUDMEYER

[slapout]

I expect the nationalized oil companies of countries like India, Pakistan,etc, in Asia will contine their drilling programs budgeted from 3 to 5 years ago. They will turn the screws down on contractors/foreigners. but their own nationaloil field employees are really the same as civil servents in many governments.

Probably the same in a lot of the middle east and other producing countries spending government monies.

Its the service personel who are the first to be laid off and they have to find other type work , go on the dole, tighten the belt down to last notch or join the criminal world. These groups have always been the stepchildren of the ''patch'' The bust is not completely world wide as neither have been past booms. The oil fields and their production is so diverice and wide spread its like the harvest of fruit/grain that progresses from one area to another area as the weather warms up. When the patch recovers there will be a large group of exemployees who will not return as there is not the stable earning . work they find elsewhere, so offered salaries are increased in the patch and new hands go to work. Thus the cycle starts again.

[Becker]

I am in marine seismic and was laid off 3 months ago. I have applied for a very small number of jobs since then but no luck.

[KarenBravo]

I am in marine seismic and was laid off 3 months ago. I have applied for a very small number of jobs since then but no luck.

PGS are going to lay off a further 180 people in October. 60 of those are marine seismic crew.

The seismic companies are now charging 2D rates for 3D and are doing the jobs at cost, just to spite the opposition.

Hope you can wait out the next two and a half years..........

[Becker]

I am in marine seismic and was laid off 3 months ago. I have applied for a very small number of jobs since then but no luck.

PGS are going to lay off a further 180 people in October. 60 of those are marine seismic crew.

The seismic companies are now charging 2D rates for 3D and are doing the jobs at cost, just to spite the opposition.

Hope you can wait out the next two and a half years..........

I really can't so am looking at going back to any other type of offhore vessels or even back to gas tankers. Won't be many marine seismic companies left in a year's time I guess. Maybe PGS and CGG?

[KarenBravo]

I am in marine seismic and was laid off 3 months ago. I have applied for a very small number of jobs since then but no luck.

PGS are going to lay off a further 180 people in October. 60 of those are marine seismic crew.

The seismic companies are now charging 2D rates for 3D and are doing the jobs at cost, just to spite the opposition.

Hope you can wait out the next two and a half years..........

I really can't so am looking at going back to any other type of offhore vessels or even back to gas tankers. Won't be many marine seismic companies left in a year's time I guess. Maybe PGS and CGG?

WesternGeco, Dolphin and probably a few others.

Have you tried freelancing through the manning agencies?