SandRidge Energy News

[bchris02]

6 months severence will certainly soften the blow. Heck, they might have even had some volunteers for that offer.

That is actually extremely generous especially if the lower-level employees were also included. I was laid off during the recession of 2008 with no severance at all. Only management got severance.

[ctchandler]

I agree, six months pay across the board is generous, but the layoffs at Hertz in the last few years have been much more generous. I know a lot of folks that received in excess of one years pay. I don't know what the low end was though, it might have been less than six months.
C. T.

[onthestrip]

Oil companies are generally some of the most unethical companies in any industry. They typically abuse the environment, they hoard money and price gouge customers when things are going good and they are quick to terminate employment when things turn bad. They never stop patting them selves on the back either.

They make, or made, a lot of money for our state so they are quick to throw their weight around too and basically make & enforce laws & planning as they see fit. Its truly a wild wild west / mad men industry.

And the fact that so many in the industry make use of "contractors" and not declare them "employees." Even though if you look at the legal definition, they should be considered employees and should get the benefits of such. Ive always thought there could be some kind of lawsuits, class action or otherwise, against a lot of businesses over this.

[catch22]

I'm sure all of those employees are happy they just spent millions building a park and fitness center.

[Dubya61]

Oil companies are generally some of the most unethical companies in any industry. They typically abuse the environment, they hoard money and price gouge customers when things are going good and they are quick to terminate employment when things turn bad. They never stop patting them selves on the back either.

They make, or made, a lot of money for our state so they are quick to throw their weight around too and basically make & enforce laws & planning as they see fit. Its truly a wild wild west / mad men industry.

Bull****. All business entities are out to make money. Some do it with ethics. Some don't. Some do it realizing that the workforce is an asset you must take care of. Some don't. Get over your grudge about oil companies. You'd sing a completely different tune if you had a decent amount of stock tied up in oil companies.

[Pete]

There is no loyalty between companies and employees any more; in either direction.

People are quick to criticize layoffs but then don't think twice about jumping ship for a better offer, even after a company has invested heavily in training, etc.

And companies are generally at the mercy of activist shareholders who demand steady and constant profits and escalating stock prices.

It's the way it works these days and it's naive to expect anything more.

[jccouger]

Bull****. All business entities are out to make money. Some do it with ethics. Some don't. Some do it realizing that the workforce is an asset you must take care of. Some don't. Get over your grudge about oil companies. You'd sing a completely different tune if you had a decent amount of stock tied up in oil companies.

So you are telling me there aren't varying cultures across different industries? Of course each business is different, but there are very distinct personalities in different industries & it just so happens the oil industry is one of the most unethical & greedy. I dont hold any grudges, I just call it like I see it. You mad bro?

Also, I've invested a substantial portion of my portfolio in energy at this recent downturn.

[Pete]

Oil and gas has always, always been boom and bust and therefore much more prone to big layoffs.

On the other side, that industry has also created tens of thousands (if not hundreds of thousands) of new jobs in OKC in just the last 10-15 years.

[Dubya61]

So you are telling me there aren't varying cultures across different industries? Of course each business is different, but there are very distinct personalities in different industries & it just so happens the oil industry is one of the most unethical & greedy. I dont hold any grudges, I just call it like I see it. You mad bro?

Also, I've invested a substantial portion of my portfolio in energy at this recent downturn.

You've said it exactly correctly: "There are varying cultures across different industries." This is correct.
You've also said it exactly wrong: "The Oil Industry is one of the most unethical and greedy." This is incorrect.
Different business entities have different cultures and methods just like different people have different personalities.
To say that the Oil Industry is all one way is like saying all of any one type of people are all one way.
Further, it appears you're hoping to profit from their unethical and greedy practices. What does that say about you?

[jccouger]

You've said it exactly correctly: "There are varying cultures across different industries." This is correct.
You've also said it exactly wrong: "The Oil Industry is one of the most unethical and greedy." This is incorrect.
Different business entities have different cultures and methods just like different people have different personalities.
To say that the Oil Industry is all one way is like saying all of any one type of people are all one way.
Further, it appears you're hoping to profit from their unethical and greedy practices. What does that say about you?

You are misquoting me. My original post said "Oil companies are generally some of the most unethical companies in any industry." which excludes the notion that ALL are. The industry as whole though is farely unethical. How can you prove this is incorrect?

I've never claimed to be a saint myself. I guess the phrase "it takes one to know one" could work here.

[Pete]

I do think it's fair to say that oil and gas attracts people of a certain personality; modern day wildcatters who are aggressive and bold.

The industry reminds me a lot of commercial real estate in that both have lots of wheeler-dealers, frequently with plenty of machismo.

Lots of money to be made in both fields and both very inclined towards big fortunes and spectacular failures.

[Dubya61]

You are misquoting me.

No.

My original post said "Oil companies are generally some of the most unethical companies in any industry." which excludes the notion that ALL are. The industry as whole though is farely unethical. How can you prove this is incorrect?

Yeah, I guess. Your original post said:

Oil companies are generally some of the most unethical companies in any industry. ...

Then, a subsequent post said:

... & it just so happens the oil industry is one of the most unethical & greedy.

I was not misquoting you.

The industry as whole though is farely unethical. How can you prove this is incorrect?

How can you prove it's correct?

[jccouger]

How can you prove it's correct?

They price gouge on a commodity.
They put their employees in some of the most dangerous situations of any industry.
They are quick to terminate employment, or use third party employment providers to avoid benefits.
They refused to take blame for an increase in seismic activity, despite scientific proof.
They use other techniques that are harmful to the environment (off shore drilling, chemicals, using a TON of water)

[bradh]

They price gouge on a commodity.
They put their employees in some of the most dangerous situations of any industry.
They are quick to terminate employment, or use third party employment providers to avoid benefits.
They refused to take blame for an increase in seismic activity, despite scientific proof.
They use other techniques that are harmful to the environment (off shore drilling, chemicals, using a TON of water)

Guess we need to stop drilling. Please turn in your (fill in the blank with the hundreds of devices you use daily derived from petroleum)

You can blame the pricing on the markets and financial players. Speculators are more the driving force there.

Using contractors is no unique to O&G

They also pay their employees very well for working in those "dangerous situations." Would I want to do it? Not really, but you can't pay a guy scraps to put himself in that environment.

[pw405]

They price gouge on a commodity.
They put their employees in some of the most dangerous situations of any industry.
They are quick to terminate employment, or use third party employment providers to avoid benefits.
They refused to take blame for an increase in seismic activity, despite scientific proof.
They use other techniques that are harmful to the environment (off shore drilling, chemicals, using a TON of water)

Correct me if I am wrong here... but if oil companies could "price gouge", we wouldn't be experiencing this downtown in oil prices. They would just continue to sell it for an expensive price right?

I am quite surprised that Sandridge gave 6 months severance. Heck, by then the price of oil might go back up!

Looking at the most recent rig count data (North America Rig Count | BakerHughes.com) it appears the rig count has continued to fall this week. Last year at this time, there were 1,498 rigs drilling for oil. This week, there are 802. With 692 fewer rigs constructing new wells, we should begin to see total US production decrease in the coming 3-6 months. Hopefully, this will help increase prices. Boone Pickens predicts crude will return to the $70 range by year end. I tend to agree.

The silver lining in all of this is that oil companies will learn new ways to bring oil to market with lower costs. Lower costs will help this sector of OK's economy to have better margins once commodity prices are more in line with the average over the past few years.

I hope that Sandridge is able to survive. While they have never been a huge employer, they do help add some variety to the OKC energy landscape.

[Bellaboo]

They price gouge on a commodity.
They put their employees in some of the most dangerous situations of any industry.
They are quick to terminate employment, or use third party employment providers to avoid benefits.
They refused to take blame for an increase in seismic activity, despite scientific proof.
They use other techniques that are harmful to the environment (off shore drilling, chemicals, using a TON of water)

I'm not too sure that you know how commodity prices work ?

[jccouger]

I'm not too sure that you know how commodity prices work ?

uhhhhh, what? It just means basically every company is selling the same thing so they can't differentiate their own product. Suppliers can sell their product for what customers will pay for it, but once buyers realize there is a **** ton of oil available they can start demanding their own price.

Oil was selling for HUGE margins, which is why so many people got involved in the industry which caused the over supply. They were GOUGING prices with these HUGE margins. Buyers just wisened up & realized if company X was selling higher than company Y, they'd use it as leverage to eventually get prices down.

[pw405]

uhhhhh, what? It just means basically every company is selling the same thing so they can't differentiate their own product. Suppliers can sell their product for what customers will pay for it, but once buyers realize there is a **** ton of oil available they can start demanding their own price.

Oil was selling for HUGE margins, which is why so many people got involved in the industry which caused the over supply. They were GOUGING prices with these HUGE margins. Buyers just wisened up & realized if company X was selling higher than company Y, they'd use it as leverage to eventually get prices down.

You seem to still believe that the oil companies can set the price of crude.

[Bellaboo]

uhhhhh, what? It just means basically every company is selling the same thing so they can't differentiate their own product. Suppliers can sell their product for what customers will pay for it, but once buyers realize there is a **** ton of oil available they can start demanding their own price.

Oil was selling for HUGE margins, which is why so many people got involved in the industry which caused the over supply. They were GOUGING prices with these HUGE margins. Buyers just wisened up & realized if company X was selling higher than company Y, they'd use it as leverage to eventually get prices down.

You have no clue what you're talking about. I have close relatives who owns an O&G company. Go check out how pit commodities fluctuate. Also keep in mind the geo-political factors that can affect a commodity price.

[mimino]

You have no clue what you're talking about. I have close relatives who owns an O&G company. Go check out how pit commodities fluctuate. Also keep in mind the geo-political factors that can affect a commodity price.

Don't forget the dollar strength either.

Employees are always the byproduct of the business environment. Do not ever think you are irreplaceable. Read the news, follow your industry, and hone your skills. Always.

[jccouger]

You have no clue what you're talking about. I have close relatives who owns an O&G company. Go check out how pit commodities fluctuate. Also keep in mind the geo-political factors that can affect a commodity price.

Did you really just pull the I know somebody who knows somebody card?

You realize these are businesses right? Yes, the price of oil listed based on futures effects the public perception of what oil should be sold for. People are not locked in to the cost of what the market says oil should be at, its just a tool used by buyers so they know they are getting a fair deal.

Why do you think the cost of oil dropped so dramatically? Eventually, supply (AKA all the businesses that are selling oil) catches up to itself & if there are a TON of places to buy oil from than buyers can use that as leverage and drive the cost down.

This isn't just a stock market game, these are REAL businesses operating in a REAL world where prices & costs fluctuate based on what people will pay for them. Once one side has more leverage they control the cost. When Oil companies had more leverage they were price gouging customers.

[PhiAlpha]

Did you really just pull the I know somebody who knows somebody card?

You realize these are businesses right? Yes, the price of oil listed based on futures effects the public perception of what oil should be sold for. People are not locked in to the cost of what the market says oil should be at, its just a tool used by buyers so they know they are getting a fair deal.

Why do you think the cost of oil dropped so dramatically? Eventually, supply (AKA all the businesses that are selling oil) catches up to itself & if there are a TON of places to buy oil from than buyers can use that as leverage and drive the cost down.

This isn't just a stock market game, these are REAL businesses operating in a REAL world where prices & costs fluctuate based on what people will pay for them. Once one side has more leverage they control the cost. When Oil companies had more leverage they were price gouging customers.

You should really consider picking up a book on how commodity pricing works...

[jccouger]

You should really consider picking up a book on how commodity pricing works...

Cool rebuttal, bro.

Believe it or not, Supply & Demand is a little more real life than the little infographic in your Macro Economics text book.

All these commodity pricing experts, & yet nobody saw this oil crash coming. Shocking.

[PhiAlpha]

Cool rebuttal, bro.

Believe it or not, Supply & Demand is a little more real life than the little infographic in your Macro Economics text book.

All these commodity pricing experts, & yet nobody saw this oil crash coming. Shocking.

Yes... Supply and Demand is real life and oversupply caused the crash...which completely contradicts your claim that Oil and Gas companies were price gouging. If US O&G companies were really colluding to set the price, why would production have continued to sky rocket while demand flattened over the last year? Why would Oil and Gas companies willingly cause the price of oil to plummet by intentionally out producing the demand?

[Just the facts]

Yes... Supply and Demand is real life and oversupply caused the crash...which completely contradicts your claim that Oil and Gas companies were price gouging. If US O&G companies were really colluding to set the price, why would production have continued to sky rocket while demand flattened over the last year? Why would Oil and Gas companies willingly cause the price of oil to plummet by intentionally out producing the demand?

Not to get involved in this part of the discussion too much, but the answer to your question is to gain market share. If a company (or country) can drive down price and put their competition out of business they gain market share and reap huge rewards when the price goes back up.