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Houston..we have a problem....

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cajunaggie08
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HeightsAg said:

There's a reason why CVX and COP is plowing money into the Permian rather than GOM.


https://www.reuters.com/business/energy/chevron-sell-some-permian-assets-valued-more-than-1-bln-sources-2021-06-30/

What percentage of CVX assets in the Permian is this?
HeightsAg
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It's a tiny portion and all the divest stuff are conventional assets that they don't have time for.
Sea Speed
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Comeby! said:

I've been on both sides for better than 20 years. Never seen anything like this before.


Care to go in to this a little more? What kind of folks are leaving and for where? What do you see being the cause? What would you think the long term impacts will be?

I'm guessing the demonization of the industry is causing some folks to get out, as well as all of the new govt bs. The loss of so many people will kill productivity in the field and in the office and will cause major headaches and maybe accidents down the road which will lead to more govt intervention leading to more demonization. I see how it could be a feedback loop by design. If you are losing the younger generation and the older generation with all the knowledge is edging towards retirement, there is going to be a large knowledge and skill gap that can lead to major issues.

Id love to hear your opinion as well as any others. I am tangentially affected by petrochemical industry and certainly will be more if I get one of the gigs I am working towards, so I would like to stay in tune with the happenings.

Appreciate the insight!
sts7049
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nobody i know is leaving because they are being "demonized". nor is it about govt regulation or whatever. both of those are exaggerated in my view and i see nobody thinking about either of those on a daily basis.

people are leaving, in my view, because companies are endlessly cutting staff to reduce costs after years of being bloated or economics not being good. and in addition people are tired of that endless churn and uncertainty, which has been happening more frequent in recent years than in the past.



htxag09
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Sea Speed said:

Comeby! said:

I've been on both sides for better than 20 years. Never seen anything like this before.


Care to go in to this a little more? What kind of folks are leaving and for where? What do you see being the cause? What would you think the long term impacts will be?
My opinion is it's various rolls and the main reason is oil and gas no longer has the fat paycheck to balance the ups and downs and keep most employees at the contribution level. Other industries have surpassed the pay and benefits of O&G. Now, executives, that's a different story.

However, as someone who was unemployed for 6+ months last year, I will say that other industries are still a little hesitant to bring on O&G folks. Or at least in my experience. I applied for equivalent level positions and everyone wanted industry experience. So I started also applying for lower level positions and everyone was hesitant to hire me as they said I was overqualified and thought I'd jump ship the minute O&G was hiring again.
Sea Speed
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I guess I should have said making some people hesitant to get in vice making people get out. It is my understanding that the number of bright young folks who are looking to get in tonthe industry out of school has sharply diminished. But I would think that all the talk by government officials about moving to 3lectric wind and solar and 3veryone constantly berating oil and gas would lead to more folks not wanting to ride the Rollercoaster.

Everyone on this board knows the necessity of O&G, but propaganda is a powerful drug.

And again, I dont know anything as it relates to this, just have my opinions, just looking for others thoughts. I greatly appreciate the insight.
dahouse
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I have been offered good money to get back in, but it's not worth it. I have kids now, can't do the up and down anymore. If companies had loyalty to employees it would be different. I killed myself for the folks I worked for, and what did I ever get to show for it? Never again. Let the execs make millions in someone else's back.
Cody
Fightin Texas Aggie c/o 04
miller0926
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Sea Speed here's my story. I'm not sharing this to try to boast/brag about my social status, I just feel like I perfectly fit the description of what a lot of these experienced folks are trying to describe.

Graduated HS in 2011, top 10%, 1990 on the SAT, A&M legacy that got into PETE with no problem. I had no idea which engineering I wanted to do when I was applying, just through google searches and articles and salaries, Petroleum and Chemical were the 2 that attracted me best. My cousin was a veteran that went to A&M after like 5-6 years of overseas, went into PETE (graduated in '10) and had internships galore, a nice entry level with a major immediately after graduation, told me Petroleum was awesome. My parents were invested in my future and were showing me articles my junior year of highschool about how North Dakota couldn't find enough people to come up there and work because the industry was booming beyond what those states could supply talent wise (my parents and I didn't even know wtf the Bakken Shale was).

Fast forward to 2015, graduating in PETE with a 3.2 GPA, and a couple of internships... and no real career post graduation really until mid to late 2017. Felt like a failure for the first time in my life for a couple of years there.

Now 2018-2021 has been the wildest, up and down journey ever. My initial team was made up of 9 people. In that 3.5 year time span, my boss that hired me was let go, 2 of those 9 were "let go" in a voluntary early retirement separation, and another 3 of those 9 were laid off in 2020. Take into mind all 6 of them survived 3 RIF's in the 3 years before I even started with the company. Not only that but we even went in and out of bankruptcy in 2020.

I'm 28 and have been lucky to make a boatload of money in these past 3 years. Bought a new car and already paid it off last year. No student loans anymore. My friends can't believe my salary and tell me they would kill to get a job with my company.... meanwhile I have no freakin clue what my future will hold even maybe just 3 months from now. I'm scared to do anything with my money, scared to buy a house, the car was bought out of necessity rather than a want, I tell my girlfriend I want to be cautious with my savings (while having literally 25x what she has), etc. etc... My company just posted a position, and I now have peers from my PETE graduating class that I barely talked to and have incredible qualifications that are reaching out to me to ask if they can put me as a reference on their application. I think I have been like the 5th or 6th youngest person in the company literally since I started. Just typing all of this has me reminiscing on how crazy and uncertain these past 2 years have been. Outside of the industry, I've been involved with the TMF with my own contributions now instead of my family's. About 2 months into Bjork getting hired I went to a luncheon and talked to him for about 30 minutes, I told him what I did and how back in college I made a spreadsheet that I could update every day that literally calculated A&M basketball's RPI (this is where the data analytics you've been seeing countless times in this thread start to come into play). Bjork told Dabney he should hire me with the TMF and his reply was literally "He's a Petroleum Engineer, we can't afford him..." It was very humbling, but at the same time in the back of my mind I would literally rather take probably a 50% paycut to get in with A&M athletics just to get rid of all of this uncertainty I've had to deal with in my career and get into something I'm incredibly passionate about.

Like I said, you've seen big data quite a lot recently in this thread. Sports data analytics has always been more of a hobby with me than an interest. I love the hell out of moneyball and things like RPI and BCS formulas. Like I said, I had an engineering mindset but no oil & gas background in my childhood. I put that spreadsheet as an "achievement" on my resume, pulled it up in the interview and my boss (who was lucky enough to be an Aggie basketball fan himself) loved it and thought it was perfect in what they were looking for in the position. Fastforward to now, I've been looking into every one of these bootcamps and master's programs other posters have been posting because that is something I would easily see myself getting into, enjoying the hell out of, and being comfortable with a paycut just to take out the ongoing job security anxiety I have every other week because of every $5 swing with the oil price. Even if the job had nothing to do with sports, I would love to make bada$$ spotfire or BI dashboards for a living. I've never really thought about an MBA, because I still think my degree would govern how other industries viewed that MBA as just an add-on to my PETE degree.... but in my mind that Data Analytics degree is something that they will view as my way to get out of oil and gas and into something more stable.

So, sorry for the 30 minute Ted talk, but that is my story Sea Speed. The leftist government policies have never been in my mind, except for that brief 2 weeks after Biden got elected. They don't really affect my company luckily... Instead, as Comeback and others have been alluding to, the ongoing uncertainty has just been destroying my anxiety and leaving me unsure of what to do with my money and relationships for 5 years now.
Sea Speed
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Thanks for posting. I feel like the fact that the industry is so politicized is a direct contributor to the uncertainty in the industry. It always seems to be a major talking point in presidential elections, and no one knows what the future holds in that regard, ie biden saying no new federal drilling and Obama imposing the moratorium in the GoM etc. I know that the future is always uncertain, but O&G has more outside influence on the stability of the industry than most others.

I worked in drilling or oilfield service industry for the most part from graduation until late 2014 when I was furloughed and then laid off. In turned out to be a blessing in disguise because I dont think I would be where I am at today without that having happened, but I dont think I would entertain going back because of the nature of the beast, and I'm much more qualified now than when I left.

The industry i am trying to break in to has a large portion of O&G customers and ot does worry me that if there is any major disruption i will not get that job or the future of the position will not be as lucrative as it is now. One of the businesses I am eyeing has contracted and many others have been stagnant and dont seem to be in a rush to continue their growth, and there is only so much longer that I will be eligible, so it is kind of stressful to try and balance work and family life with trying to break in to that world. There is a lot of uncertainty in my life too in that regard, which I feel like is definitely something a lot of people are trying to get away from these days. I think the uncertainty of the industry has probably been the constant over the 5 or so years this thread has been around.

sts7049
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what i see is you trying to find any way you can to turn this into a political thing. i think in reality that is not the main issue.
Sea Speed
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I dont think that is the case, but it is irrefutable that politics plays a part in the industry. Thats about the only thing im certain of. I stated I have opinions and thoughts and I am interested in others, because there are several here that see a major issue. I am very curious about the cause and effect.
AgLaw07
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I recently left O&G and it had absolutely nothing to do with politics.

Made it through several downturns without getting caught in an RIF and enjoyed the O&G pay scales to save up so that i can start my own business. I kept the crazy hours and huge amounts of job uncertainty but now if it's a great market/year I benefit instead of the CEO of my last company.
Pahdz
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Very easily could say the same thing about health insurance. My wife works for the largest one and I feel like it's pretty similar to O&G in that regard.
JD Shellnut
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It's definitely political, when you work in midstream and wonder if the new idiots in charge will issue new permits for future lines, or if some judge invalidates your existing permits. And don't even get me started on having to put up with damned dirty hippies protesting everyday.
Comeby!
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Sea Speed said:

Comeby! said:

I've been on both sides for better than 20 years. Never seen anything like this before.


Care to go in to this a little more? What kind of folks are leaving and for where? What do you see being the cause? What would you think the long term impacts will be?

I'm guessing the demonization of the industry is causing some folks to get out, as well as all of the new govt bs. The loss of so many people will kill productivity in the field and in the office and will cause major headaches and maybe accidents down the road which will lead to more govt intervention leading to more demonization. I see how it could be a feedback loop by design. If you are losing the younger generation and the older generation with all the knowledge is edging towards retirement, there is going to be a large knowledge and skill gap that can lead to major issues.

Id love to hear your opinion as well as any others. I am tangentially affected by petrochemical industry and certainly will be more if I get one of the gigs I am working towards, so I would like to stay in tune with the happenings.

Appreciate the insight!

I got out with a PETE degree in 98-99 when oil was $8/bbl. The prior 10 years the PETE department enjoyed 100% job placement. My year, I believe we had 4. I was one of the lucky ones. Ended up working in the Amazon jungle (you go where the work is) and shortly thereafter was laid off due to the company being bought out. I learned that painful lesson early in my career and thank goodness I really didnt have any responsibilities. That taught me a key lesson: Look out for #1. Noone is going to look after you like you will. I moved to East Texas and started working for a service company. Got a CDL, drove a crane unit and made nearly half of what my prior job wouldve paid me. It was a tough living. 28 days on, 2 days off. Left the apartment at 3am, got home around 10pm, My Corps experience prepared me for it, I'm not sure I wouldve made it had I not been through a few things on the quad. Fast forward several years when I went to work for an independent then moved into a major shale company. Finally moved my way through and at the tail end of that gig, raised PE money, starting my own operating company. We absorbed a SmashCo before they were really being talked about. We still operated both companies today.

What I noticed recently that I have not seen with any of the prior downturns is the level of pressure from the money side of the business. I'm not saying it isnt warranted but the pressure to minimize G&A is tremendous. The expectation is to do more with less. Technology and data may be the future but when it's sold as a recurring monthly payment (SaaS) the numbers may get dicey. I've never taken a raise or a bonus since we started the company. We were recently in the final round for a major acquisition, and quite frankly, the capital (from lots of different/independent sourcres) was restricting us from adding headcount....even though the company's production would've quadrupled. The ESG pressures (which we all need to seriously consider) are there as are the calls for renewables. At the end of the day, money is too greedy and I feel ESG and renewables will go out the window when you look at it purely from an economic perspective. I sit on our PE's investment committee; I expect the economics to improve for renewables but right now, it makes no sense unless you are in the construction or services. I suffice it to say, my son starts engineering at A&M this year, and I'm not recommending he consider PETE, as much as it pains me to admit that.

Happy to chat in more detail via PM, etc.
Drillbit4
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WTI over $76/bbl as OPEC talks break down
Joseph Parrish
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Drillbit4 said:

WTI over $76/bbl as OPEC talks break down
Fine by me!
gigem1223
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Drillbit4 said:

WTI over $76/bbl as OPEC talks break down


& $3.80 natty gas!
Sea Speed
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What is everyone's opinion on the growth of the nat gas export terminals along the gulf coast. Another one is opening in lake charles this year and I am pretty sure there is another one going in there in the near future. Thats something like 6 operational and one planned for the coast from Corpus to lake charles. From all accounts they are very busy. I cant remember the number of ships the new LC terminal expects per year, but when I was talking to someone in the know, the number blew my mind. Several ships per month if not per week. I assume the US nat gas export forecast is very robust
Engine10
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Export play for sure, but don't skip LNG bunkering. IMO 2020 behind us now, pushing fuel oil out of the fuel mix entirely has to be on the radar up next in favor of LNG. That will take a long time to manifest, but may explain all the infra. Just my view
Engine10
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Natty was $2.60 in March. Damn things change fast!
BlackGoldAg2011
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Drillbit4 said:

WTI over $76/bbl as OPEC talks break down

High price of $76.94 makes it the highest WTI has been since Nov 24, 2014
Sea Speed
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This seems political.

https://www.bnnbloomberg.ca/biden-officials-urge-opec-members-to-find-compromise-solution-1.1625527

Quote:

Bloomberg) -- The Biden administration is urging OPEC and its allies to find a compromise solution to increase production after the cartel abandoned a meeting Monday, according to White House officials familiar with the discussions.

Even though the U.S. isn't a party to the talks, it's "closely monitoring the OPEC+ negotiations and their impact on the global economic recovery from the COVID-19 pandemic," a White House spokesperson said Monday. "Administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward."
Cyp0111
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No, it's the realization from the administration that the world is run off of crude oil and you can pander all you want to the far left/climate religion of your base but you get elected on the economy.

Crude spiking much past here will really harm emerging markets and constrain any recovery in developed nations.
LRHF
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BlackGoldAg2011 said:

Drillbit4 said:

WTI over $76/bbl as OPEC talks break down

High price of $76.94 makes it the highest WTI has been since Nov 24, 2014



Some are back, many of us unfortunately moved on
Cyp0111
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I think you will continue to see downward pressure on salaries across the oil and gas space as fewer and fewer newco public willing to pay up for talent thus the more stable companies will not have pressure to match. I struggle to see a scenario where base pay for regular oil and gas workers goes exponential like we saw earlier last decade.
Ulrich
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Getting infrastructure projects done is heavily political and depends on national and local politics. Drilling permits especially offshore and on federal lands are heavily dependent upon the presidential administration.

I think people who have been in school the last 5 years or so are a lot less willing to go into oil and gas. That doesn't do much good for any of us since we're not competing with kids right of of college.
Comeby!
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For those of you actively looking for tech jobs.

Ulrich
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I don't know why LinkedIn is pushing Allie Miller so hard. Not commenting on that post, but she's always popping up as someone I should follow and I don't know why.
Comeby!
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This is the first thing I've seen posted by her. Figured by our conversations here recently it might help someone. She probably pays to promote it.
jh0400
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Another avenue into tech is to look into pre-sales consulting roles enterprise software companies that sell into industries in which you have experience. These roles are usually staffed by industry SMEs and work along side the sales team to perform value studies, build business cases, and give product demos. For finding companies, if you know of a company that sells into your industry you can search sites like G2, Gartner, or Forrester (last two are paid but companies can license their Magic Quadrants or Waves for distribution; great use of a burner email) to get a view of all of the players in that space.
joemeister
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Do tech companies need title opinions?
htxag09
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1 warning on tech. My wife is with a large tech company. The nature of that industry is they have layoffs every single year. Lots of mergers, acquisitions, etc.
Petrino1
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htxag09 said:

1 warning on tech. My wife is with a large tech company. The nature of that industry is they have layoffs every single year. Lots of mergers, acquisitions, etc.
So basically the same as oil and gas lol?
htxag09
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Yes, but my point is a lot of people are trying to run from O&G to big tech for that reason, among others. Just pointing out that's not something you'll be escaping. They may have better benefits and seem to treat employees better. But they're just as dispensable at the end of the day
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