Despite a projected record year for capex spending in 2014, oil majors are doing their best to reign in their spending (see ExxonMobil for a specific case). This fiscal restraint will likely hit off-shore rig manufacturers who have no-contract new builds, service companies, and the employees of the various respective oil companies.
Non-majors have been experiencing the pinch from rising labor and completions costs. EnCana late last year announced a 20% reductions in its workforce; UK firm BG Group may be reducing its workforce by more than 5%; Chesapeake late last year announced that the punch bowl would be taken away under new CEO Doug Lawler.
The money quote came at IHS CERAWeek 2014 from Chevron's CEO, John Watson:
Non-majors have been experiencing the pinch from rising labor and completions costs. EnCana late last year announced a 20% reductions in its workforce; UK firm BG Group may be reducing its workforce by more than 5%; Chesapeake late last year announced that the punch bowl would be taken away under new CEO Doug Lawler.
The money quote came at IHS CERAWeek 2014 from Chevron's CEO, John Watson:
$100 oil is becoming the new $20 oil.
No comments:
Post a Comment