Vallourec Announces Layoffs for One-Third of its U.S. Workers
Vallourec, headquartered in Boulogne-Billancourt, France, manufactures steel pipes used in the oil and gas industry. The company employs some 19,000 people in 20 countries, including the U.S. In fact, Vallourec employs more than 750 at three Youngstown, Ohio units: Vallourec Star, VAM USA and Vallourec USA Corp. Yesterday Vallourec corporate headquarters announced it will reduce (layoff/eliminate) some 900 positions “across all plants as well as support functions.” That number, 900, represents over one-third of Vallourec’s total workforce and contractor positions in North America. The announcement implies all 900 of the positions being eliminated will happen in North America.
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Is your head spinning yet with all the news about the oil price crash and what the U.S. may or may not do to “fix” it? Ours is! Last week President Trump tweeted to the world he had a conversation with his “friend” the Crown Prince of Saudi Arabia and the Prince told Trump the Saudis and Russians are close to announcing a major cut in world oil production (see 
While the drilling rig count is an important signal for the future of oil (and gas) production, drilling a hole in the ground is only half of the process (and only one-third of the cost). After the hole is drilled comes “completions”–fracking and other work to get the hole producing and connected to a pipeline. Fracking is done by a collection of equipment–things like high-pressure pumps. It’s known in the industry as a “frac spread” (or a “frac fleet”). Counting the number of frac spreads is a better indicator of how much oil will come online than counting active rigs. What does the frac spread count show right now? How quickly will U.S. oil production decrease?
We’re not anywhere close to being “through” the worst of the coronavirus siege. Yet the environmental left in this country is opportunistically using the virus to push for the end of oil AND natural gas use. It’s mindblowing how stupid they really are. They are blinded by their own wacko non-God environmental religion. As we begin to exit from the virus crisis, attention will once again return to the race for the U.S. presidency and to calls from a majority of the Democrat Party to slap a nationwide ban on fracking. What would that *really* mean, in dollars and cents and jobs? We have some numbers for you to mull over.
MARCELLUS/UTICA REGION: Albany’s natural gas drilling ban: crushing blow to Upstate New York; NATIONAL: Most North American E&Ps seen cutting 2020 capex by 35-40% as coronavirus wreaks havoc; Oil and natural gas industry responds to COVID-19 with charitable and community assistance; Natural gas will benefit as oil producers shut in production; Fear creates opportunity: Williams Companies and Archrock; INTERNATIONAL: Trump should prepare to be scapegoated for a failed Russia-Saudi oil meeting.
The Pittsburgh Post-Gazette is reporting Marcellus/Utica condensate, produced in places like southwestern Pennsylvania and eastern Ohio, briefly touched and went below $0/barrel last week, before recovering slightly. The article says the price M-U drillers are getting for condensate is down 91% from January of this year. What’s lacking in the Post-Gazette story is context for how important (or not) condensate is as a revenue stream for M-U drillers.
Pennsylvania Gov. Tom Wolf, like governors in neighboring states hit hard by the COVID-19 coronavirus, has elected to shut down all non-essential (called non-life-sustaining) businesses in the state until further notice to prevent the spread of the virus. The state issued a comprehensive list of which kinds of businesses could, and could not, continue working during the shutdown. Some 35,000 businesses on the non-life-sustaining list have requested a waiver from the state Dept. of Community and Economic Development (DCED). The DCED has so far granted 5,693 waivers, denied 8,952 requests, and ruled another 8,365 do not require a waiver because they fit the life-sustaining definition outlined in the shutdown order.
Leftist anti-fossil fuelers (nutters all) have worked themselves into a frenzy with a new campaign to bombard the Federal Energy Regulatory Commission (FERC) with requests and demands to begin all over again in its review of the PennEast Pipeline project. Last week MDN told you about the Delaware River Basin Commission’s haughty demand that it be given the right to review and pass judgment on the project before construction begins (see 
Although it seems counterintuitive to say this, maybe NY Gov. Andrew Cuomo and his legion of radicalized Democrats have done New York landowners a favor with a permanent ban on fracking, passed as part of the most recent state budget (see 
Two weeks ago MDN told you about the biggest single-week drop in U.S. rig counts since the final week of December 2015–more than four years ago (see 
MDN is updating our 
While no one was paying attention, distracted with literal life and death issues due to the coronavirus pandemic, the uber-corrupt and sleazy Andrew Cuomo (worst governor EVER) slipped in a permanent ban on fracking into the annual state budget bill which is now the law of our fallen (and sick) land. This is truly a sad day for those of us who live in New York State. We seriously doubt there will ever be a Republican legislature and governor in NY to reverse the horrific damage now done to our civil liberties. Freedom died yesterday in New York State. We now live behind enemy lines.