For the third consecutive month, companies that provide support activities for oil and gas exploration and production have been eliminating positions. Over the year, that sector has cut 2,600 jobs or 6.1 percent.Seems to me that if the oil companies were confident in $70+/barrel they wouldn't be cutting back. Hmm.
In other local news, the monied crowd near Rice University are getting their panties in a wad over the Ashby high-rise. At this point, why? The proposed white elephant will never be built. We are awash in see-through condo towers and no one will finance another condo tower in this city for at least 10 years.
4 comments:
unemployment under 10% is so last year. out here in california we're heading toward 13% by the end of the year. and thats the official number, if you ignore the people who have just run out of benefits and stopped looking. The only outfit hiring in great numbers is the state govt itself. announcing layoffs every other day, but the personnel board didnt get the memo. They hired thousands last month alone, even as the state was printing iou's because it has NO MONEY.
everyone is overcutting, it's worse in the usa because the majority of drilling out of houston is for gas, which is at <$3/1000ft^3.
drilling will be dead, and if the gas price creeps up a little bit it'll get knocked on the head by imported lng.
It will take a while for oil and gas employment to catch up. Projects in the industry take years so you don't just turn it around on a dime.
Yep. What Joe said. Gas prices are still low, and there is a big excess in LNG import termial capacity just as major supplies (like Qatar) have expanded. It will be a while before gas makes a comeback.
And I also think $70/bbl is too high, but not by much. Asia is rebounding faster than anyone expected, and much of the excess crude inventories accumulated last spring are being worked off.
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