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Not directly. But indirectly, the frack boom played a role
Posted on: May 4, 2021 at 18:33:21 CT
KC rules MU
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I went through probably 25-30 layoffs so far in my oil career, all of them fueled by low oil prices and/or mergers. The oil price increased from 2009 (when we also had a round of layoffs) to 2014 and then started dropping in 2014. The industry hired tons of people between 2009 and 2014 and then when the prices started dropping in 2014, layoffs hit most oil and service companies. I would blame the layoffs mostly on corporate amnesia (the tendency of companies to forget the past all too quickly when prices are favorable) resulting in over-hiring. But the rise of unconventionals did have a downward impact on oil price (just as it did on gas prices prior to 2009) which turned out to be the catalyst for the downsizing. But had companies shown some restraint in hiring in the first place, that would not have happened.
Edited by KC rules at 18:35:03 on 05/04/21
Edited by KC rules at 18:35:03 on 05/04/21
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Not directly. But indirectly, the frack boom played a role - KC rules MU - 5/4 18:33:21