Stop all ROV work worldwide until Day rate are increased

[SGB]

Interesting article from The Economist

Big oil

Over a barrel
Nov 8th 2007
From The Economist print edition

Rising oil price equals rising profits, right? Wrong

AS THE oil price climbed towards $100 a barrel during the past few weeks, big Western oil firms were reporting their results for the third quarter. Record oil prices, it turns out, do not translate into record profits. Oil is now close to exceeding the record set in 1979 of between $100 and $110, depending on how you adjust for inflation and what benchmark you use. Yet almost without exception, big oil firms’ profits are falling from the peaks reached last year.

Exxon Mobil, for example, reported a 10% drop in profits in the third quarter, and BP’s fell even more sharply. Profits also fell at Chevron, ConocoPhillips and Eni. They rose at Total and Royal Dutch Shell—but only thanks to exchange-rate fluctuations and one-off asset sales. Analysts at Citigroup calculate that, measured in dollars, the biggest oil firms’ earnings fell by 15% on average.

To be fair, the oil price has surged most dramatically since the end of September, although it was also buoyant in the third quarter. The majors’ poor showing also reflects lower profits from refining, as the difference in price between petrol and crude oil has fallen from the exceptionally high levels of recent months.

But the fact remains that oil giants are struggling to pump more oil and gas. In part, this is due to a quirk of the rules that oblige Western oil firms to share the crude they produce with state-owned oil firms in many countries. The contracts in question often stipulate that as the price goes up, the volume of oil the foreigners receive decreases. Worse, several countries are changing contracts or tax rules in ways that will further erode the Western oil firms’ profits—and in some cases are throwing them out altogether.

Rising costs are also a problem. Exxon, which is known for its stringent financial discipline, saw costs rise almost twice as fast as revenue in the third quarter. The shortage of labour and equipment that is feeding this inflation is also causing delays to new projects. And there are not enough new projects in the pipeline. The International Energy Agency, an energy watchdog for rich countries, reckons that the expansion plans of the big Western and state-owned oil firms will leave the world 12.5m barrels per day short of requirements in 2015.

Despite this looming deficit and the glaring price signal, all the big companies except Total produced less oil and gas in the third quarter than they did in the same period last year. According to Citigroup, the average decline in overall output was 3.3%. If the relatively steady supply of natural gas is stripped out, the numbers look even worse: oil production fell by 9% on average. No matter how high the price goes, the oil majors cannot make a profit from oil they do not produce.

[wecanfixit]

Great plan, lets shut the industry down and completely isolate ourselves from the operators, thats always worked in the past!!!

Try getting 6 guys on a team to all agree, how are everyone going to agree to this.

It sounds good but can not see it happening, why not get together and talk to your ops manager and say you are all going elsewhere as others are paying better.

Rates have gone up a fair bit in the last year, shit I’m getting more money than my current wife and the last 5 can spend even with their expensive habbits. I’m all for rebellion but anachy never did anyone anygood.

😈 Sorry to rain on your thunder but the truth hurts sometimes.

[SGB]

This must be a wind up.

The oily10 have presented no sensible or credible argument for justifing a 25% pay increase.

Anyone serious about this would have investigated the consequences of not working, are you willing to risk losing your livehood as no company would want to employ them afterwards. Employment law – read it up

It beggars belief that certain individuals have these ideas above their station, in this industry merit is rewarded and to be honest to earn what a Doctor (GP) earns and then claim the tax back is incredibly satisfing and somewhat humbling. Compare your income to others in the engineering sectors with the same quailifications and then say you deserve 25% more.

Over the past 2 years rates have jumped up for those who deserve it.

Stick to your guns, if you believe its just, do it, but don’t be surprised that there might be only 10 of you.

[Savante]

you want a harsh reality??

http://www.og.dti.gov.uk/pprs/full_production/oil+production+sorted+by+field/91.htm

[SGB]

Another article from The Economist forecasting the fall of the price of a barrel.

http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=381586&story_id=10064485

[T-Boy]

Not too sure which thread to write the reply in 😯

Seems like a daft idea to me, but then again I enjoy my job and the excellent pay and lifestyle it affords.

I wonder if you ’10’ are just a bit p!$$ed off with your employee at present or you feel that your day rate is lower than you had hoped or what exactly has triggered the ‘toys out of the pram’ style post.

Get some iteresting subsea work, that’ll keep the idle minds focused…sounds like you are all bored 😉

How much experience (in years) do you have of the offshore industry?
Most of us who have been in it foir a decade or two know that the oil companies pay a hell of a lot for us and we maybe see about a third in our hands, but that is business.

Call me sceptical, but this could come back to bite you on the arse!

I would chuckle if you stick by your guns and didn’t launch…that would surely result in a few more offshore vacancies 😆

HAPPY CHRISTMAS AND A JOYOUS NEW YEAR

[TheProphet]

Im sorry but the more you read about all this crap the more you think what a load of bollocks this is.
I remember striking on a job for a major UK electical contractor in the late 80’s did i get a pay rise did i f**k.
I got sacked along with quite a few others,as i held out for my Uni0on views.
The same will happen here with you muppets if you follow the same way as Oilypipe you need to get in the real world as you are obviously in the same circus as Biily Smart .
If you are any good in this industry the rewards are there to be add, if you don’t ask you don’t get or you don’t get as you are F*****g useless which in my humble oppinion is the catagory you fall into OILY numpty 😆

[wecanfixit]

oily10

This grand scheme of yours has several flaws, you are assuming that the ROV industry accross the board are all reading ROVworld half the guys I’ve worked with in the last year at least dont even know it exsisted until I told them and more importantly you assume that the guys offshore have access to internet to read this. Not sure how long you have been doing this or where but in the parts I’ve been working most of the time the vessel that have internet are few and far between so unless you have managed to get the email address of every guy offshore or send a message via a pigion you have little hope of getting most offshore guys to down tools.

Another thing to remember would be that you are out there somewhere offshore for whoever working under a contract that prior to going out you happly signed which means you agreed to the rate for the duration of your trip, so technically if you down tools you are in breach of contract and I suspect that come the 9th of Jan you will not acheive a 25% increase in pay but will manage to get a 100% reduction!

Anyway good luck with your future career as your current one will probably be ending quite soon.

[Dugsub]

cc

[Anonymous]

By the way Oily Pipe. Your spelling is shit and if i received your ridiculous email or letter as a manager of an ROV company, i would file it right under B. How in fucks name do you think that you can organise a strike on the 8th Jan (worldwide as you put it……) by a few postings on rovworld from the 19th Dec???.

I think that likely you are all on a drill support job and are bored out of your minds and sick of incessantly masterbating hence your laughable circus trick.

All the very best in your new career.

[Savante]

nice… I think the spelling gives the guy away though!!! 😆 😆

[Cabledog]

😆 😆 Are you thinking who I am thinking Sav 💡

Be good
Dog

[Savante]

I’d be willing to bet my asbo on it !! 😆

[SGB]

The poll instigated by the oily 10 now has 8 votes….2 for strike action and 6 for no.

So much for solidarity within the massed ranks of the oily 10.

😆 😆 😆

[Anonymous]

HI
Count me in on 8th Jan.

Damn I can’t, I am home in sunny Th 😉

[Author]

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