We all chose to work for Weatherford for one reason or another. I'm guessing reasons like, good pay, stability, work environment, exceptional pay etc... Point being, you would have quit your job if your needs weren't met.
Now, Weatherford is an OIL field service company. (notice the word “oil” in caps) Who, by default, services oil production companies in many ways. NEWS_FLASH!!!! THE PRICE OF OIL HAS DROPPED SIGNIFICANTLY over the last 4 months.
What does that mean?? That means oil production companies now have a product (that product being OIL) that is worth much less today than it was 4 months ago.
Oil is a natural resource, its cums from below the earth’s surface. There’s nothing anyone can do to increase the value of oil. Therefore, oil production companies are now forced to operate with profits much lower TODAY than they could when oil was $100-$75 per barrel.
In short, if an oil company has 3,000 employees and is drilling, completing and producing ....say 500 oil wells (all of which need to be serviced at some point, that’s where an OIL field service company gets involved) with oil prices at $100-$75 per barrel and there able to pay all their employees and make a nice profit then things are all good and everyone is happy. But if oil goes to $45-$55 per barrel and that same company has the same number of employees and same number of wells then there profits and there ability pay employees and service wells is SIGNIFICANTLY DECREASED. Now when this happens an oil company has a few options. 1. Keep everyone on payroll and continue operating as if oil were at $100-$75 per barrel. This option would cause the oil company to go broke over a period of time. Rich people own oil companies and they really don’t like the idea of becoming broke people. 2. CUT COST ie..employee count, well servicing, oil production, etc.. Which leaves the oil company in an advantageous position, because, WHEN oil prices go up they can hire employees, increase production and drill additional oil wells.
Because Weatherford is an OILFIELD SERVICE company it’s their job to follow in suit with their customers. THAT WAY WHEN THE PRICE OF OIL RETURNS WE CAN ALL BENIFIT FROM THE PROFITS. JUST LIKE ALL ITS EMPLOYEES HAVE BEEN DOING FOR THE LAST 5 YEARS.
When you take a job with an oilfield service company it’s very important to know up front that your job (in most cases paying you much more $$$ than your neighbors make) is a direct reflection of THE VALUE OF A BARREL OF OIL!!!!
So if you’re laid off, smile, be thankful for Weatherford then go out to your lifted F350 (which you had no business buying in the 1st place) scratch off the "oilfield Life" sticker, and get another job. DOESN’T DOG WEATHERFORD OUT FOR reducing their head count. I'm living proof that you can have no high school education combined a good work ethic and a POSITIVE ATTITUDE...and you can get a job here starting at $15 an hour, full medical and 401K....and four years later make $300,000.00 in one year. If anyone knows of any other company or industry that yields those results please let me know. Be grateful for Weatherford, there just like any other service company, trying to make $$ when the gettin's good.. If its stability in a career that’s become so important to you as of the last few days then I suggest you become a school teacher, police man, garbage man, dog catcher, prostitute..etc
Those above mentioned professions are not directly affected by oil prices.