My husband will be giving out layoff papers this week

[Anonymous]

Because of the dropping price of crude oil..



He is a superintendent at a very specialized oilfield service company..



They supply top drive electrical systems to conventional rigs drilling for oil and gas..



Their sales are falling all over the world and as a result some of their apprentices will be laid off..



I feel so terrible for all of the nice young men affected.

 ac_crying

[Obvious Li]

Because of the dropping price of crude oil..



He is a superintendent at a very specialized oilfield service company..



They supply top drive electrical systems to conventional rigs drilling for oil and gas..



Their sales are falling all over the world and as a result some of their apprentices will be laid off..



I feel so terrible for all of the nice young men affected.

 ac_crying

yep ...it's a bitch...i was through it three times in my career in alberta....it never gets easy to deal with.....hopefully it will be short lived

[Anonymous]

yep ...it's a bitch...i was through it three times in my career in alberta....it never gets easy to deal with.....hopefully it will be short lived

There are a few things about this current crude downturn to consider.



1. It was all on the supply side. Unlike say, 2008 when demand tanked for everything, the Saudis see competition from American shale oil and Canadian heavy as a threat. They are willing to lose huge amounts of cash for now in order to regain lost market share. However, their predatory pricing strategy will have the effect of taking pricier oil from the US, Canada, Brazil, Russia and Norway off the market as they reduce production. This will cause the supply to drop and price to rise again later this year.



2. Lower prices act as tax relief almost in net importing countries like China, Japan, Korea and even the USA(but not as much as in the past). Low oil prices will increase their GDP thus increasing demand and price of crude.



3. The big I don't know in all this is Europe. They are in recession yet again. This could have a negative on the still fragile US recovery.

[Anonymous]

Because of the dropping price of crude oil..



He is a superintendent at a very specialized oilfield service company..



They supply top drive electrical systems to conventional rigs drilling for oil and gas..



Their sales are falling all over the world and as a result some of their apprentices will be laid off..



I feel so terrible for all of the nice young men affected.

 ac_crying

yep ...it's a bitch...i was through it three times in my career in alberta....it never gets easy to deal with.....hopefully it will be short lived

We have had to cope with this before too..



My husband's position is safe, but no salary increase or bonus this year even if it gets better in the second half..



Our new premier has frozen hiring for Alberta's provincial employees too.

 ac_crying

[Anonymous]

Because of the dropping price of crude oil..



He is a superintendent at a very specialized oilfield service company..



They supply top drive electrical systems to conventional rigs drilling for oil and gas..



Their sales are falling all over the world and as a result some of their apprentices will be laid off..



I feel so terrible for all of the nice young men affected.

 ac_crying

That is tough and unlike our problems in Ontario which are own fault, there is nothing Western Canada can do about it. We have a lot of companies supplying machinery and parts for Western Canada's energy industry, so it is our problem too. These are usually better paying jobs too than the light manufacturing jobs that will be given a boost because of lower fuel prices.

[Anonymous]

Because of the dropping price of crude oil..



He is a superintendent at a very specialized oilfield service company..



They supply top drive electrical systems to conventional rigs drilling for oil and gas..



Their sales are falling all over the world and as a result some of their apprentices will be laid off..



I feel so terrible for all of the nice young men affected.

 ac_crying

That is tough and unlike our problems in Ontario which are own fault, there is nothing Western Canada can do about it. We have a lot of companies supplying machinery and parts for Western Canada's energy industry, so it is our problem too. These are usually better paying jobs too than the light manufacturing jobs that will be given a boost because of lower fuel prices.

When I had my own business, I had suppliers in Ontario, BC, Quebec and New Brunswick. Suppliers of parts and services to conventional oil and gas are in even worse shape than their oilsands counterparts.

[Anonymous]

My husband told me there could even be a second round of layoffs in a couple of months if prices continue to tumble.

 ac_crying

[Obvious Li]

My husband told me there could even be a second round of layoffs in a couple of months if prices continue to tumble.

 ac_crying

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

[Anonymous]

My husband told me there could even be a second round of layoffs in a couple of months if prices continue to tumble.

 ac_crying

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

My Daddy is hoping there is market crash here, so he can go on a buying spree. I on the other hand want to see my home value go up, not down.

[Anonymous]

My husband told me there could even be a second round of layoffs in a couple of months if prices continue to tumble.

 ac_crying

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

I don't remember that, but some of the ladies I work with were talking about real estate prices in Calgary..



They think house prices overall will drop a little, but not too much.

[Obvious Li]

My husband told me there could even be a second round of layoffs in a couple of months if prices continue to tumble.

 ac_crying

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

I don't remember that, but some of the ladies I work with were talking about real estate prices in Calgary..



They think house prices overall will drop a little, but not too much.

it is sounding more and more like this will be a long term deal..more likely years than months

[Anonymous]

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

I don't remember that, but some of the ladies I work with were talking about real estate prices in Calgary..



They think house prices overall will drop a little, but not too much.

it is sounding more and more like this will be a long term deal..more likely years than months

Oh no, why do you say that Obvious Li?

[Anonymous]

it is sounding more and more like this will be a long term deal..more likely years than months

No, I'm still sticking with the second half improvement theory. Think about it, the Saudis are using deliberate predatory pricing to take market share away from mainly Russia, USA and Canada. The King is near death and they are running huge deficits, so deliberate low prices are a short term move at best. On top of this, the USA and Canada alone are lowering capital spending and production lowering supply and sending prices back up. Goldman Sachs believes WTI will settle into a $60 to $80 range in the second half of the year.

[RW]

My husband told me there could even be a second round of layoffs in a couple of months if prices continue to tumble.

 ac_crying

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

My Daddy is hoping there is market crash here, so he can go on a buying spree. I on the other hand want to see my home value go up, not down.

It's all relative Shen.  Higher home value until you are ready to sell just means higher property taxes.

[Anonymous]

let me know when i can buy a house in calgary for $1 like it was in the early 90's...i'll be there in a hearbeat

My Daddy is hoping there is market crash here, so he can go on a buying spree. I on the other hand want to see my home value go up, not down.

It's all relative Shen.  Higher home value until you are ready to sell just means higher property taxes.

True, but an extra $1800/yr in property tax for three years vs. $100K in appreciation is well worth it. I am not interested in real estate as an investment myself, but I am explaining how my Daddy sees it.