Quote from: TDoS on Nov 08, 2024, 02:59 PMService companies certainly lay people off far faster than those who own and sell the oil do. Of course, they also hire far quicker when the price increases.

Sure.  The issue is how long does the low price persist?

If it's short term, say a couple of months, the worker goes on UE and takes a vacation in Vegas until the price rebounds and his old boss calls him up and says "Hey Joe, we need you to leave the hookers and bring your 6-pack here to Eagle Ford to destroy a little more of the environment for your old salary of $100/hr.", or whatever the going rate is for expert Frackers.

If the EIA projections are right though of a decade long Glut and persistently low prices. well Joe's UE runs out after 6 months and he's blown all his savings at the blackjack table and on cheap hookers, so he's either found some other type of work that pays decently or he's flipping burgers at Mickey Ds living in his retired parents basement mooching off their social security, or he's homeless living on skid row in LA in a cardboard box with a 6 pack of used needles next to his sleeping bag.

Far as how much oil is available at what price, this impacts the finance drones who dish out a pile of money so a given service company will start up again to offer J6P Fracker his old job back.  If the prediction is for high prices with plenty of oil available at said prices, the drone sees big profits and $$$ signs flash before his eyes and happily dishes out the money.  If on the other hand the prediction is for low prices with only 3 billion measely barrels available to frack up at a profit, he's not so willing to fork over the money for Joe's salary and leases on equipment etc etc etc.

Thus you get guys like this service company CEO moaning about the price and trying to figure out how he's going to keep his company going ad pay the mortgage on his $1M McMansion and the Tuition for his kids private school.  I feel really bad for him. lol.

RE