Wow dah V7 yerrr ..... lama dah tak masuk LYN. Been a bit busy. Tough times ahead. Been through a couple of these cycles and it looks like this one is going to take a while.

The O&G Industry is very cyclical. Lama tak masuk thread. So now I guess everybody is sweating this out.

Been a bit busy for the last year or so. 60 dollar oil is not too bad. If you are working with an Operator, this is the time you start looking at the cost side of things. When it was 100 dollar oil, the cost went up 5 fold. Those service providers such as SLB, Halli, etc etc and the rig owners are sweating as new contracts are now going to be more down to earth in terms of pricing.

Most definitely. Not just the service provider but also operators who seems to be doing some sort of knee-jerk reaction. Once a company resort to retrenchment, it will be very difficult for them to hire once the oil price move up again (or in this case stabilizes to maybe 65-70 dollar oil.) You lose the trust of your employees and those who remains will also be looking for the first opportunity to leave once another offer comes by.

Most IOCs though have a good grasp of future oil prices and they are quite conservative with regards to their economic planning. I doubt most of them uses 100 dollar oil for any of the long-term projects. Most probably uses 65-70 dollar oil so the impact on current assets are probably not that severe.