Oil Contracts

[BlasterBates]

Is that a typo?

Yup | Define Yup at Dictionary.com

[JRCT]

Yup the cuts will come.

Is that a typo?

[Paddy]

I believe that decline in the oil industry will be offset by the upward trend in every other business caused by the falling energy prices and lower costs. About time to cut the huge profits of the oil giants. Too bad it will be the low end employees who will take the brunt of the cuts.

Subsidize them? WTF

Lets increase the fuel duty, keep the petrol prices the same and use the proceeds to subsidize the oil giants...

Right on..

[BlasterBates]

Yup the cuts will come.

[Sysman]

obin Allan, chairman of the independent explorers' association Brindex, told the BBC that the industry was "close to collapse".

He's talking about his bit of the industry, and that's the bit oil companies will be using their cash on when prices are high.

Oil exploration is often a very long term investment because stuff they find that's uneconomical to extract today might become economical to extract with some combination of new technology and future prices.

But it's very reminiscent of the early 80s.

Oil price too low: it's hurting our income.
Oil price too high: pound too high and it's hurting our exports.

I got sick of it then and I'm sick of it now.

[scooterscot]

Where's Alex Salmond gone?

Wait for it. He'll be PM in May after forming a coalition in with Lab and the Lib-dems.

[EternalOptimist]

Any industry can be taxed into oblivion,

slightly OT but did you know that one of the big German power generating companies E.ON have decided to split their operations into conventional and green. The idea is to hive off the subsidised from the heavily taxed. They just about had enough of being demonised and penalised for giving people what they want so they have set themselves up to milk the system.
The heavily taxed half still had a duty in law to provide constant reliable lekky, the renewable side doesn't, because they cant. madness on stilts

[sal]

I believe that decline in the oil industry will be offset by the upward trend in every other business caused by the falling energy prices and lower costs. About time to cut the huge profits of the oil giants. Too bad it will be the low end employees who will take the brunt of the cuts.

Subsidize them? WTF

Lets increase the fuel duty, keep the petrol prices the same and use the proceeds to subsidize the oil giants...

[EternalOptimist]

The oil industry is subject to TRIPLE taxation.

try to reduce that and the greenies will call it a subsidy


Ring fenced Corp tax (ring fenced so losses can not be offset against profits) 30%
Supplementary Charge 32%
Petroleum Revenue tax 50% of whatever is left (per oilfield)

[zemoxyl]

BBC News - North Sea oil industry 'close to collapse'

Anyone contracting in the oil domain? What's the situation?

Always fancied a bit of Oil & Gas - but not now!

Know an O&G contractor who has been taken off the bench with more work than she can handle. Long term projects are unaffected by the short-term ups and downs.
Know some permie chemical engineers who seem totally unperturbed with job prospects.

Don't know how you would transition into this market without experience though.
One good thing about this industry is that it does not seem to be biased against older workers - which is the opposite from I.T.

[eek]

Where's Alex Salmond gone?

I was up for a role with Wood Group earlier this year. I didn't get it and I was gutted at the time because it looked really interesting.

"Aberdeen-based Wood Group announced a pay freeze for staff, and cut rates for its contractors.""

Given the typical quality of a Wood Group office I wouldn't be that annoyed..

[JRCT]

Where's Alex Salmond gone?

I was up for a role with Wood Group earlier this year. I didn't get it and I was gutted at the time because it looked really interesting.

"Aberdeen-based Wood Group announced a pay freeze for staff, and cut rates for its contractors.""

[Pondlife]

Crude price low = no investment
Crude price high = let's turn the west coast of Canada in to an open mine.

Basically, no big juicy contracts in Upstream. Refining margins should be bumper, downstream is driven by regional economy so the market isn't improving but still ticking over.

Money is still being spent but not on anything new.

[scooterscot]

I suspect this story contains more hyperbole than fact. Operations will not stop their just not as profitable. If tax cuts are not given to the industry then I suspect many companies around the UK supporting the industry are going to find any growth they've been enjoying going into reverse.

[PurpleGorilla]

BBC News - North Sea oil industry 'close to collapse'

Anyone contracting in the oil domain? What's the situation?

Always fancied a bit of Oil & Gas - but not now!