Low fuel prices.....lack of work !
 

Fuel prices have been dropping and I have heard a lot of rigs are not drilling because of this.

Any one hear not working ,or has a friend that is not because of the fuel price.

Will it get worse in the new year ?

Best cure for low prices are low prices. there will be a lot of adjustments and some downsizing for sure, but losing market share isn't much of an option for most companies in the current market.

Every economic signal I have seen or referred to, especially in the last month or so, points to a very large downturn, layoffs, bust, etc. Good luck!!

Two good friends of mine laid off from their jobs in downtown Calgary before Christmas.

Luckily I left the field this fall. Now I'm in the fire extinguisher biz, a biz that's regulated and mandated by the government, and fires don't care about the price of oil. I don't make as Mich as in the field(when times are good), but it's steady work everyday.

Right before Christmas-brutal. Neighbor owns a small oilfield co, he says he will lay off whenever because his guys would change outfits for a buck more down the street. Very little loyalty either way. Sad.

In theory, rigs should actually be drilling more with "low fuel prices".

Low oil prices are the problem - not low fuel prices.

It will get much worse before it gets better - again.

Just heard my brother was laid off a week ago.

He was running hotshot. Sucks to lose a job right now.

Talk about perfect timing ^! We'll done, Lee!

The fire-extinguisher/safety business is good, honest work ... and most of all, it's steady. Give it a shot for a couple of years, and if you find you don't like it, the O&G business will be back up and roaring again by then.

:sign0111: with it!

Mac

I work seismic, have my own mulcher. I have about 30 days of work as compared to 60 last year. Lots of other people I know in the industry have no work at all.

I was slow since late last winter at my last job, which was strange because break up usually didn't have much affect on us. After a slow summer and roumers about a slow winter and cut back drilling programs from a lot of consultants I worked for, I took the out when I got the offer. Had a friend who was doing extinguishers back in 08-09 and he said he never missed a beat when everything slowed down. That's what confirmed it for me

fuel prices
 

while it hurts the oil industry, many people now have money to spend in other places such as retail. It puts a lot of spendable cash in the hands of shoppers that wasn't there when prices were high

I think more people tend to hang onto their cash when markets drop. People aren't shopping when there friends and neighbours are getting layed off.

If it lasts too long real estate values will plummet, people will have to leave town for work. Will be a good time for long term investors to pick up some bargains.

It's the best thing that could happen for Alberta and the oilfield industry right now.

As a guy lucky enough to be alright right now - the closer to the wellhead you are the better, but its going to get bad. When companies are chopping 15-500 million from budgets, things are going to get bad - real bad. I feel for us all, but there may be a good market for 5th wheels and sleds in GP real soon.

Yup, I'll enjoy the flooding of those items in the used market as well as the low prices at the pumps!

Unfortunately, unless one lives in a bubble, it doesn't quite work that ^ way, here in Alberta.

Whether we like it or not, O&G is still the main driver of our Alberta economy (Ag being #2). When O&G suffers a major setback (like now), it doesn't take long for the 'ripple effect' to set in. When the hundreds of thousands of O&G workers start losing their jobs, or fear losing their jobs, they stop spending on everything, except for the bare essentials. In the end, even the grocery clerk can be effected, and no amount of low gas or diesel prices will be of much help to him/her, or the rest of us.

Careful what you wish for!

Mac

20 dollars a week savings on fuel!!!!! quick spend that elsewhere, yeah that isnt how it works lol. lets just hope oil and natgas goes back up soon so we can all keep our toys

Been hoping nat gas recovers for 7 or 8 years now. Personally I believe Alberta fares better with a high nat gas price compared to high oil

i hope the housing prices drop.

This! :scared0018:

This turns into a depression like the early 80's people across the country will soon learn it's the oilpatch trickling all the way from Vancouver to St. John's that's been driving our entire economy. In the early 80's the Ont/Que economies were shielded by our gov't at the time throwing the western economy under the bus to artificially support that of central Canada......Different situation now. We'll all be in this together this time. (if it happens)


That being said, if you've been prudent with your debt and the above comes to pass this will be the time when poor or frugal people can get ahead by leaps and bounds.

The early 80's sucked big time, but that also gave us the opportunity to get ahead, and we took it. Forget buying sleds and fifth wheels, buy houses and land; some right from the banks. Forget quick returns, think longterm and keep your debt levels where you're comfortable, allowing for bad times.

If you're the guy with lot's of toys with loans dump them now while there's still time. If you don't think the above will happen, forget everything I've typed. Good luck everyone, we're all in this together. :)

Nothing like a good old toilet flushing to get rid of the junk.. I bet a lot of it is going to run east and west..

One can only dream of empty cutlines and non clogged boat launches once again.

Ahhh to dream..

The ag producers will welcome the glut of labourers and equipment operators leaving the patch. It has been years of scraping the bottom of the barrel and reliance on TFWs for them.

i'm loving the price of gasoline right now,,thinging about buying a camper,,,i fix cars doznt hurt me at all.....it's a good think for the average joe,,,,,like all good thing it won't last

Do you own a house? If so I would be hoping gas prices go back up. Paying a couple bucks more for gas is going to save you a lot more money then what you will lose on your house value if gas goes/stays low...

So true.

I left the patch 16 years ago. I hated the ups and downs--never knowing if I'll be out of work or not. I got to say when the price of oil was high, I was a tad jealous since my old buddies were making two or three times what I was. In times like these though I'm glad I made the right decision.

As a hotshot driver I think I'm noticing it. We deliver mostly to the plants up north not the rigs so it's affecting us in a different way. We started to notice a tightening of the belts before the gas prices dropped and now the hotshots are almost non-existent, either given to cheaper competition or held until the next trailer load.

We are one of the most expensive services out there but that never used to matter when the money was flowing out of Ft. Mac like diarrhea from the buffalo.