Posts Tagged ‘Linn Energy’

Vortex Tools covers the ongoing scaling back of the oil and gas industry in 2015—specifically: layoffs in Colorado.

I can describe the current American oil and gas experience in four words: Layoffs and low prices.

Whether it’s big companies or small companies, the story is the same: 2015 budgets were delayed then drastically reduced. From there, oil and gas companies have hemorrhaged employees (yet production continues to climb).

With being headquartered in Colorado, we’ve kept tabs on what’s happening around us. Over the last six months:

  •  Noble Energy planned to cut 220 jobs or 10% of its workforce, 80 from Colorado (and Noble is one of the main companies in the state).
  • WPX Energy cut 8% of its nationwide workforce, scaling its Denver office back from 156 people to 15 (25 Denver-based jobs were eliminated—120 were offered to relocate to Tulsa, OK).
  • Bayou Well Services decided to permanently lay off 250 Colorado employees.
  • Sabine Oil and Gas Corp. laid off 102 Denver-based employees starting in December 2014.
  • Linn Energy will shut its Denver office, cutting 52 jobs.

(Despite this, we’ve still sold Vortex DX-I tools into the Wattenberg basin [in northeastern Colorado] to increase oil recovery efficiency in horizontal applications when combined with gas lift.)

Field install of the DX-I Vortex tool

Field install of the DX-I Vortex tool

Some of this is scaling back the bloat that occurred with high oil prices, but some of it has to do with the downside of how many American companies conduct business. I can’t remember where I ran across this study, but it noted how different parts of the world formulate their business plans. Great Britain works off a five-year plan; Germany, a 10-year plan; and Japan, 15 years. The United States? Companies usually plan around whatever will increase stock prices this quarter.

You might think that 5-15 years is too long of a planning period, but planning around what can bump numbers within a 90-day period is woefully shortsighted and often hamstrings future development. However, with oil and gas, when it hurts financially, it hurts big, and when recovery comes, companies can often buy their way to solutions then. For 2015, however, even if it’s a great market to pursue oil and gas efficiency—squeezing every bit of value from the well—it’s going to be a year of engineers trying not to get fired.

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Colin McKay Miller is the VP of Marketing for the SpiroFlo Holdings group of companies:

SpiroFlo for residential hot water savings (delivered 35% faster with up to a 5% volume savings on every hot water outlet in the home), industrial water purification (biofilm removal), and reduced water pumping costs.

Vortex Tools for extending the life of oil and gas wells (recovering up to 10 times more NGLs, reducing flowback startup times, replacing VRUs, eliminating paraffin and freezing in winter, etc.).

Ecotech for cost-effective non-thermal drying (for coal, biosolids, sugar beets, dairy waste, etc.) and safe movement of materials (including potash and soda ash).

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