Something has fundamentally changed in the oilfield in recent months. Oil companies and oil service companies seem to be resolutely clinging self-interestedly to the mantra of “there’s a long way to go yet”. But, there’s most definitely been an awakening.
The first indicator of a recovery will never be the price of a barrel. That much is obvious when time is taken to look back at the actual historical ‘normal’ prices for a barrel of oil; way lower than the $100 mark that most people believe to be the driver for recovery. No, the first indicator of a recovery will be the re-hiring of those lost in the mayhem of a vicious two year oil downturn.
And here’s why…
The perceived ‘dead wood’, whatever that actually is, has been culled. Rightly or wrongly, companies have gotten rid of the ones they believed were surplus to requirement, at the time anyway. But now, each and every day, offshore jobs are beginning to reappear across the spectrum of oil companies and oil service companies.
Because the cuts were too harsh, too quick, too deep, and too knee-jerk, and they know it. They knew it the moment a contract flashed across their desks asking for the re-mobilization of crews to the North Sea, to the Permian Basin, and to the shimmering sands of Saudi Arabia.
They knew they had made a right royal mess of things, losing years of experience with each head that rolled; years that are with different companies and different industries now, possibly never to return.
The awakening isn’t wrought of cuts to workforces and slashed terms and conditions that have apparently streamlined businesses. No, the awakening is wrought of need, of economics, of mathematics. Put simply, the population of this world hasn’t stopped growing for a single day for as long as history has recorded such matters. Regardless of the price of a barrel of oil, the onward march of the burgeoning global population demands more oil, not less, and that onward march drives demand.
Be prepared, those men and women who were unceremoniously and unnecessarily culled from profitable organizations, be prepared to take those calls; soon, and in volume.
For there has been an awakening. Can you feel it too?
Like Offshore Insider on Facebook