Oil just hit $110 per barrel. Will this help with O&G jobs? My colleague thinks this could lead to more layoffs across multiple industries.
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@ae Interesting thought , I guess its mainly based on AI growth or?
@r6 price of oil is determined by supply vs demand. Supply is constricted but when hostilities end the strait will open, vessel insurance will drop. There will be a straight of Hormuz cost component forever since Iran now knows it can close the strait in a New York minute.
What comes next you ask ??
Layoffs come next!
@ae Nothing, Exxon-Mobil, Chevron, all love it, no need to spend money when the ROI is at a nice high price, why do I need to spend money in exploration and drilling when the commodity is at such a nice P/E ratio
I don't think it does much, 110 dollars now is what 80 was in 2016. Even if it did drive up business wells are much more efficient, oil tools aren't made here in the US, so there's no real new job growth, and all companies are much more capital conservative because boomers now are retiring so there's not as much money to play with.
We're entering a period of world wide decline, full stop. We're not gonna really be used to what comes next I think. Whatever it is.