The Good, the Bad, and the Ugly of Current Oilfield Industry News
There is a good, a bad, and an ugly thing happening in the oilfield industry at this moment.
The Bad. ConocoPhillips is set to lay off 10% of its global workforce, with 500 jobs being cut in Houston, Texas, alone. This is on top of many thousands who have already lost their jobs. According to outplacement firm Challenger, Gray & Christmas, between June of 2014 and April of this year, 51,000 American jobs have been cut for reasons directly attributable to plunging oil prices. Mass layoffs have also occurred at Haliburton, Baker Hughes, and Schlumberger, to name a few.
The Good. Ending the ridiculous oil export ban finally has serious momentum in Washington D.C., and there are strong signs that both the House and the Senate will vote to lift the ban and that the President will sign it. The ban is unnecessary, outdated, and a horrible job killer. Well-informed experts who are in the know say there is more than a 75% chance that as early as this fall, the ban will be removed. Lifting the ban should mean U.S. oilfield workers get back to work by the thousands and yet consumers may be able to continue rejoicing in low gas prices
The Ugly. The reason the outdated oil export ban would pass would be directly linked to the President getting his way in making the horrible deal that’s been set up with Iran. The Middle Eastern sponsor of terrorists would begin to be able to sell oil again. And who can fathom Iran having their ban on oil exports lifted while the U.S. continues to be banned from the world market, with the exception of refineries? What makes this aspect of the oil industry news so ugly is that the Iran deal will mean many millions of U.S. taxpayer dollars will go straight into the hands of terrorists, not to mention that Iran would presumably have the capability of going nuclear within ten years.