Definitely not saying that is a good time to come down and get a job in the GOM but it depends on the position you are looking at. I am sure they are still looking for qualified ETOs for the newbuilds. It is difficult to find people that have the electrical and electronics experience and capability to function in that role. That is a crucial position for a modern diesel electric vessel.
people ain’t gonna stop buying stuff from China transported by containership or needing to eat food transported by truck plus they’ll travel more with lower gasoline prices as well as airplane tickets with all the spending which goes along with that travelling. Job numbers are excellent these days in case you haven’t noticed.
one way or the other, everything on the planet is connected to petroleum in some fashion and the cost of most of those things will be lower now that oil is lower. Over the past decade, a good bit the price of a barrel of oil was the added cost due to the anxiety felt by the trader’s caused all the shit that took place in the middle east…suddenly with all the US production, there isn’t the same fear and almost overnight the price falls to what it should have been all along which is about $50/bbl. That an there is so much production now that the speculators can’t control the market like they did. They have been overwhelmed and thankfully no longer are players in keeping the prices up. Speculation by non upstream oil companies in oil futures should be banned. If you buy it, you better have the refineries and the markets to sell it or pay a big tax on the deal. Getting speculators out will undoubtedly create a more level and much more stable oil market in the future after the price does rebound. We never should face withering heights followed by white knuckle plunges. In the end, they serve nobody including those who work in the energy industry. Everyone should want stability or am I a lone voice in the wilderness again here?
[QUOTE=dredgeboater;151495]Definitely not saying that is a good time to come down and get a job in the GOM but it depends on the position you are looking at. I am sure they are still looking for qualified ETOs for the newbuilds. It is difficult to find people that have the electrical and electronics experience and capability to function in that role. That is a crucial position for a modern diesel electric vessel.[/QUOTE]
Funny world this is. Just got a recruiter email in my inbox for a qmed job but company is confidential. Thru Global Marine. Ever hear of that headhunter?
I have not heard of them.
to reverse your logic is that low energy prices accelerates overall production and spending because a very major cost to production is now half what it was and many hundreds of billions that had been going to oil producers and speculators is now freed to be spent and invested elsewhere.
I still say that whatever industrial production which is lost due to the downturn in energy prices is more than offset by the benefit to the overall economy. Yes, producers lose as do all the support companies the producers utilize which includes equipment manufacturers, OSV owners and offshore drilling contractors. Something has to go down in order for something else to go up.
The thing that concerns me about the impact of low oil prices is the amount of leverage in play. If the investors in energy are using a lot of leverage, they might have to sell off their non-energey assets to cover their energy losses. That could put downward pressure on non-energy asset valuations. The same kind of thing happened during the housing bust in 2008. On the other hand, I don’t really know how much leverage is in play, or the value at risk. I guess it’s $150 Billion?
[QUOTE=rbc;151540]The thing that concerns me about the impact of low oil prices is the amount of leverage in play. If the investors in energy are using a lot of leverage, they might have to sell off their non-energey assets to cover their energy losses. That could put downward pressure on non-energy asset valuations. The same kind of thing happened during the housing bust in 2008. On the other hand, I don’t really know how much leverage is in play, or the value at risk. I guess it’s $150 Billion?[/QUOTE]
I say good for the speculators and investors who might take a haircut now over being forced to sell their non energy portfolios to cover their energy losses. In many cases, these investors were in energy to turn a quick buck and I am more than on record as saying speculative investment in any market should be restricted if not prohibited outright. Invest in something because you believe in its long term fundamentals…we would have a more stable and healthier economy as a result.
Cat Finance will be the harbinger.
your 401k has to go somewhere…
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[QUOTE=c.captain;151542]I say good for the speculators and investors who might take a haircut now over being forced to sell their non energy portfolios to cover their energy losses. In many cases, these investors were in energy to turn a quick buck and I am more than on record as saying speculative investment in any market should be restricted if not prohibited outright. Invest in something because you believe in its long term fundamentals…we would have a more stable and healthier economy as a result.[/QUOTE]
your 401k has to go somewhere
or all that money that has been printed in the last few years is chasing too few assets, hence speculation
It is ABSOLUTELY WRONG for pension fund managers to be making speculative investments. That should be illegal and those who have their pensions being managed by such should demand only value investments be made but they people are greedy are likely were all for the speculation since they got the big payouts.
Our energy sector has been touted as keeping our head above water during our post crash rebuild, especially in manufacturing areas like Ohio. While I am hopeful, I fail to see what industry will step in and fill that void, especially if we are in global recession. Caterpillar is going to be the company to watch. If they get hit in 2q there might be trouble, I they make out OK, things will probably be alright.
CAT is very diversified far beyond only selling to the energy sector. They are huge in heavy construction and trucking which themselves will benefit by lower fuel prices. Any losses to reduced orders from energy projects will more than be made up in other areas. The same goes for all the other heavy machinery manufacturers. John Deere must be just beside themselves at the moment with their great good fortune. You know that Ag is sure as hell happy these days.
Even in maritime, there is no pain being felt by the companies outside the GoM. Fuel is still being moved by tank barge and tankship all over our coasts at the same volume as before. Demand has been flat but it is supply which is driving down the price. Vessel operating companies outside the offshore are happy as hell with one half the fuel oil bill to pay each month. rshrew, tell us what the thoughts are at the moment at WTB regarding the low energy price climate today? You guys must be in clover at the moment!
I am on record as saying that this forum is too offshore centric…what is pain for some is a blessing for others in this business. Let’s hear from them for a change.
[QUOTE=catherder;151512]Funny world this is. Just got a recruiter email in my inbox for a qmed job but company is confidential. Thru Global Marine. Ever hear of that headhunter?[/QUOTE]
Out of Mobile? If so, they are a branch of Compass Marine