– If we notice something cuts? Yes, we can safely say. Yvan lost his job in January, says Caroline LAGOUTTE.
1 January closed Statoil contract with IT supplier Caverion and utsourcet services to India. From the day got Yvan LAGOUTTE suddenly more time than he wanted.
This morning he welcome the company of both wife, kids and in-laws. Aftenposten hit them in the spring sunshine among oil scrapped that have become playground outside the Petroleum Museum in Stavanger.
– It is delicious with a little more time together, but I would have released uncertainty about when it pops up a new job. We believe and hope that it works out, but it is so clear sucks to go home and feel that nobody need your expertise, says Caroline.
– Do not panic, do not panic.
That was the message from Oil and Energy Tord Lien under brokerage Swedbank energy seminar in Oslo before Easter. It is perhaps easier said than done, when 11,000 jobs cut in the oil industry only since the calendar tilted in 2014, according to DnB. Figures crushers in the SSB has considered itself until that around 15,000 jobs will be lost because of lower oil investments o g lower oil prices in 2018. In the long term twice as many jobs disappear – equivalent every fifth job in the whole industry , according to the agency.
– The equivalent jobs in a medium-sized city and is no pushover. There is a considerable shock, said SSB researcher Ådne Cappelen when the figures were presented.
In Stavanger roughly 20 percent of jobs directly or indirectly linked to the oil industry, versus approximately 10 percent elsewhere in the country. It puts its stamp on the city where residents cheer for our hockey team Oilers, supply ships are as natural a part of the cityscape as the old white wooden houses and vast oil rigs periodically disrupts the otherwise idyllic views of Byfjorden. Forus a piece outside center is the major oil companies in a row and are competing to have the coolest signature buildings. Statoil is leading the race with its plans for a 80 meter high new headquarters – 17 meters higher than the tallest building in Oslo famous Barcode. A stone’s throw away opens Porsche this year its new flagship store in Scandinavia.
Meanwhile, oil prices almost halved since last summer. And even before the price drop had the oil companies and the supplier industry started cutting positions to gain control of their galloping costs. Oil investment falls after years of record growth – a growth which has led to the Stavanger region has had the nation’s highest housing prices, one of the fattest fleet and high density of one million salaries.
So how it is marked in Oil Capital when saving the blades sharpened? When oil and gas industry goes on the back burner and thousands of good income within “oil industry” looks that they can go tighter times ahead?
– We do not notice so much in daily life. But we see it in our dealings with people, that there are still some who knows someone who is affected by this. We notice skepticism increases when it comes to housing market developments, and I think most of us look in the eyes that wage developments ahead is unlikely to be the same as it has been, says Siddis and professor of petroleum economics at the city’s university, Klaus Mohn.
– But I see more of this as a correction and is not quite able to paint the big scare pictures based on what we’ve seen so far, he adds.
He stressed that oil investment increased by 50 percent Over the three years from 2010 to 2013. Then it is not unnatural that the pace slackens a bit. Meanwhile, he notes that the cuts we have seen in the industry now largely results of grip companies took even before oil prices began to fall and profitability received a further blow.
– In other words: It will be worse?
– Yes, Statoil has also said that they aim to reduce their own investments by 10 percent on top of the cuts they took last year, and we see a similar tendency for other oil companies, he said.
To go from a state of rapid growth to stagnation is a big change, only that.
– Can Stavanger simply well to cool down a bit?
– It goes well placed to say. With the exception of a small break during the financial crisis, the industry has been in continuous growth since the millennium. Now we need to set us on a new phase where industry is growing slowly or perhaps not at all. But to go from a state of rapid growth to stagnation is a big change, only that, says Mohn.
But what becomes of all oil workers who lose their jobs? The contrast between the reports of mass layoffs and figures speak so far has been strong. Nationally, the unemployment rate in December lower than the same month the year before. But in the Stavanger region was in March 1443 more unemployed than in the same month last year, before the companies started in earnest to grind save blades.
According to Norwegian Industry is probably part of the reason why unemployment does not increase more that the greatest brunt taken by the roughly 20,000 hired in the oil industry. A good portion of these are foreigners who leave the country when it is no longer job to get, others are consultants that are inserted into other industries. Many of the engineers who are made redundant get fast job in other sectors that have long struggled to attract enough engineers because of the high wage level in the oil industry.
Several of the many people Aftenposten spoke to in connection with this article tell of fierce battle for the few positions announced. On the following pages you can read about how people in and outside the oil industry in Stavanger experiencing the new times.
In recent months, Yvan LAGOUTTE sought what has been relevant jobs. – It was part searching in January, but now it has subsided very, he said.
Also at work to Caroline at Norwegian Petroleum Society marked downturn. Society organizes conferences for the industry, and these expenses are among the first to go when companies will save. In a group of friends is the tough times in the industry was a recurring theme.
– Everyone knows someone who is affected. I hear people say that this is a crisis at the micro level. But it feels a little worse than that, she says.
– We had enough well by getting us down to earth
Name: Ingve Nilsen
Tethering to “oil industry”: Graduates oil engineer. Had to go from trainee job in Subsea 7 in November.
About the future in Stavanger: I hope to get myself a new job in the oil industry in town. I still believe there are good opportunities for it.
As I studied, we felt very sought constantly. It came steadily businesses visiting to introduce themselves to the students. I think almost half of the engineers on the coal mine had secured a job before they proceeded with the thesis. Although I got a trainee position in Subsea 7 in November the year before.
When newspapers began to write about cuts in the spring, I was relieved that I had gotten a job and felt I was assured. But in September, just a month after I started, we were told that there would be layoffs. Two months after I was called into the boss’s office. He said he was sorry to say that I had to stop. I got two days to complete its work and a half years severance package. So I went home and tried to think of something else.
I was going to buy my apartment, but now I’m glad that I delayed it slightly. Now I use the time to seek jobs and groom cows at the farm. It’s nice to have something to engage with – when one is raised on a farm you will naturally accustomed to working much.
Currently, I have sought around ten jobs, and been on one interview. There are many applicants for positions, and often they want senior engineers with extensive experience. But I hope and believe that this will work out.
I’m surprised how quickly things can turn around, that you can go from having a safe job for nothing in such a short time. We had enough well to come down a little on Earth. It is a handy experience – now I know in any case that you should put properly appreciate their job.
– I feel I have contributed to the after party
Name: Lise Gro Ekholt
Tethering to “oil industry”: Worked as oil trader in Statoil since 1977
About the future in Stavanger: There’s a new day and many exciting projects ahead
– F ** n! It was first thought that struck my head when they announced at the General Assembly that all of my generation and older were offered gratuity. I got a choice I would not take, but it was also an offer it was impossible to say no to. I’ve always seen myself working until I’m 67, then becomes the 58 years too early to go off, but anyway then it’s not shame on me!
I have worked in the oil industry all my life, most of the time within the purchase and sale of oil, Statoil in Stavanger and London, and most years only female trader in the environment. When I got into the industry in the late 70s could got one job right from high school. I did it and have and got my whole education through Statoil.
I’ve always loved my job, but they had to downsize, and if I had not gone, had perhaps some younger did not get as good conditions go instead. I experienced, however, no pressure to take the package. I am quite sure I shall find me a new job, but first I have a little vacation, land a little and think out what I want to do. I hope that I am with my experience and expertise will be able to utilize for me somewhere other than Statoil. I have the impression that most people find a job again – it might take a little more time now.
If there is an end to the oil party in Stavanger? I feel in a way that I am with the after party – but it comes the new day and it’s many exciting projects in the coming years. There has been a frenzied hype of the economy in the area in recent decades as a cooling we have enough expect us. One can almost hope for it – then I think especially in the housing market.
– Many sell their homes at a loss
Name: Tor Øyvind Grov
Tethering to “oil industry”: Has sold homes in the oil capital of 15 years
About the future Stavanger: The housing market is going to remain quite stable for several years. I think neither the particular case or growth.
– There is no more than two years ago it was more expensive to stay in Stavanger than in Oslo. But now, housing prices have leveled off, and the time it takes to sell a home has gone up significantly. It now takes up to 50 days on average to sell housing in Stavanger, while a few years ago went away at 16-17 days.
We have not seen such a large effect of oil price fall yet, but the market is bit cooler. It is longer between good sales stories and more merchants are disappointed price they achieve.
Many must now sell their homes for a lower price than they bought them for 1-3 years back in time. When housing prices has had a powerful positive development over the last 10 years, people have an expectation that they should sell for a profit. But now we see many examples of people have bought apartments in the city, plastered them up, and sell with partly heavy losses.
The housing market started to calm down a bit already in 2013. Now there are many homes for sale, and pile up slightly. The oil market is not as sprightly as it was, and the banks set stricter capital requirements. People are not getting as wanting to buy a home when they see that prices are falling. When one thinks about an extra time before both seller and buyer.
It has been very good times in Stavanger long time. With so many with million salary in the oil industry, it is clear there will be a bit special. When one reads about people using Porsche to run gravel to the cabin with hanging, it is perhaps a little speaking?
– We hit the middle of Hurricane
Name: Sigurd Lindland
Tethering to “oil industry”: Director of Clarion Hotel Energy, which opened in Stavanger in August last year.
About the future in Stavanger: Light in the tunnel is Johan Sverdrup
I have been on many hills, but this is one of the steeper. It came so incredibly surprising. 1. August last year was no near to believe that this would happen. We opened on August 14 and a week after we had a full house here with the opening ceremony of ONS. Monday August 25th, I sat in the office and discovered that it was almost abrupt end in the individual traffic. August and September were quite deplorable. So it took thankfully up a bit again with Christmas season.
The oil represents about 30 percent of all activity in Stavanger, so it goes without saying that when the oil price halved in just a few months, it is marked throughout the city. Taxi industry brands, and a large percentage of our coatings are linked to oil. Every Tuesday and Wednesday in the last 10-15 years there has been trouble get a hotel in Stavanger. Now it’s available rooms here all weekdays.
We had to reduce 15-20 FTEs and have had to look for other activities than we planned for. We have received several conferences from other industries to the city and has also made a number of sporting events. Now we have such a Canadian handball team here. We go probably benefit that we are a newly opened and exciting hotel.
We increased hotel capacity in Stavanger by 18.5 percent when we opened, while the overall market dropped drastically. It will probably be småtøft year and in 2016, the light in the tunnel is when Johan Sverdrup project get started with the full pressure of 2017. But this goes well, I’m in no doubt.
– We had hoped to earn 300,000. Now we lose money
Name: Stian Molvik and Karema Toledo Molvik
Tethering to “oil industry”: Jobs in the oil industry. Struggling to sell apartment in the city center.
About the future in Stavanger: It’s not so bad here that one can get the impression when reading the newspapers.
– We have lived in the apartment for four years. Now we sell because we have got a daughter and need more space. We have bought into a new construction project in Sandnes. Luckily we acquire not until next year, so we have a good time. We thought it was wise to start with sales already now, for we have heard it is slow day. Then we can take a break if it does not go as we want. Since we have lived here for so long, we had hoped to earn some of it, but now we lose money.
This is the second display round and we have had three private views after the first viewing. Then came five people, and all sat down on the list. But the bid came was too low. We will probably go a few rounds before we feel confident that we have the right price. We had hoped to earn around 300,000 – we could really needed it to the next home.
We are working for Statoil and Norled and notice that there are a lot of savings in all angles and sides, and that people do not being replaced when they stop. But aside from that and that the housing market is not going so well, it is marked not much on the city that it is worse times. When I would celebrate my birthday in a restaurant, several of the places such as fully booked – on a Tuesday. It shows well little that it is not so bad here that one can sometimes get the impression. But the guy from Viking who towed our car told that they have more to do in a recession. When container folk cars longer and saves into service and repairs.
We must roll up our sleeves
Name: Christine Share Helgø
Tethering to “oil industry”: Mayor of Right in Stavanger since 2011.
About the future in Stavanger: I is optimistic. But we must roll up our sleeves and adapt.
– We are undoubtedly in a difficult time and energy capital, we are particularly vulnerable to economic cycles. We saw clearly in 2014 that the fall in oil prices affected municipality our economy directly by that tax revenues ours was significantly lower than expected. Activity in the region is lower and we see several companies that stock packages, lays off employees or terminate people. both the strong focus on costs and declining oil prices got a much greater effect on municipal finances in 2014 than those I had expected.
I think also the year we are in will be a challenging year for the oil industry. Unemployment will probably go up somewhat in 2015, but we must remember that basically was very low.
I am optimistic, especially with regard to the activity on the Norwegian shelf. The news that Statoil will be the operator for Johan Sverdrup in all phases means a security for jobs in this region in particular. One of the key future is that we use the time well to adapt so that we get a broader industrial base than what we have today. There are many opportunities to transfer expertise from this industry, for example, ICT, medicine, security and emergency preparedness.
We’ve had strong growth for many years, and I think everyone now is prepared to roll up sleeves and get back into community spirit which we are known in this region. In Stavanger, we have a long and successful tradition of close interaction between the public, industry and research. We will continue with this.
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