{"id":10435,"date":"2015-07-27T07:52:58","date_gmt":"2015-07-27T12:52:58","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10435"},"modified":"2015-07-27T07:52:58","modified_gmt":"2015-07-27T12:52:58","slug":"will-corner-office-syndrome-be-the-downfall-of-canadas-oilfield-services","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10435","title":{"rendered":"Will \u2018Corner Office Syndrome\u2019 Be The Downfall Of Canada\u2019s Oilfield Services?"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Will-Corner-Office-Syndrome-Be-The-Downfall-Of-Canadas-Oilfield-Services.html\" target=\"_blank\">Will \u2018Corner Office Syndrome\u2019 Be The Downfall Of Canada\u2019s Oilfield Services?<\/a><\/h3>\n<p>No sector of the economy should be considering the urge to merge more than Canada\u2019s beleaguered oilfield services (OFS) business. The signals are powerful: overcapacity in virtually every product and service line; prices down to slimmest of margins; bankers are unhappy and getting twitchy; shareholders are morose and OFS operators have to do something because doing nothing is no longer an option.<\/p>\n<p>The short- and medium-term outlook is not promising. Oil prices are going down, not up. The recent nuclear deal with Iran will continue to overhang well-supplied world crude markets into next year. Even if oil rose sharply tomorrow, Alberta would still suffer from heightened uncertainty until the\u00a0<a href=\"http:\/\/www.cnbc.com\/2015\/05\/11\/alberta-royalty-rates-new-fears-in-canadian-oil-patch.html\">royalty issue is clarified<\/a>.<\/p>\n<p>New oil sands projects are dead. LNG is paralyzed by price, cost and global market turmoil. E&amp;P companies looking to drill are demanding the lowest prices possible. Bankers who have been patient for months cannot kick the forbearance letter can down the road forever.<\/p>\n<p>Because of a collapse in business, along with oil prices, oilfield service managers have been cutting costs since late last year. Workers have been laid off by the<a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/100000-Layoffs-and-Counting-Is-this-the-New-Normal.html\">tens of thousands<\/a>. Capital spending and maintenance programs have been slashed or postponed. Discretionary expenditures like travel and entertainment have been cancelled. Pay cuts have been instituted. Dividends reduced or eliminated. Principal payments postponed where possible.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Alternative-Energy\/Solar-Energy\/Toxic-Waste-Sullies-Solars-Squeaky-Clean-Image.html\"><strong>Related:\u00a0Toxic Waste Sullies Solar\u2019s Squeaky Clean Image<\/strong><\/a><\/p>\n<p>The last major expense not yet addressed in any meaningful way is a measurable reduction in administrative (non-revenue generating) costs per dollar of revenue. This is the CEO, COO, CFO, VP marketing, HR manager, safety officer and corporate head office. Reduced expenses for field service locations and product and service delivery. Increased purchasing power in other words.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will \u2018Corner Office Syndrome\u2019 Be The Downfall Of Canada\u2019s Oilfield Services? No sector of the economy should be considering the urge to merge more than Canada\u2019s beleaguered oilfield services (OFS) business. The signals are powerful: overcapacity in virtually every product and service line; prices down to slimmest of margins; bankers are unhappy and getting twitchy; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1082,103,151,1190,588,3521,1775,5332],"class_list":["post-10435","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-alberta","tag-canada","tag-commodities","tag-lng","tag-oil","tag-oil-bust","tag-oil-price-collapse","tag-oilprice-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10435"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10435\/revisions"}],"predecessor-version":[{"id":10436,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10435\/revisions\/10436"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}