Now let see how this it affect petroleum companies and i will finish by explain how it affects oil and gas workers.
How it affect oil companies
The industry is composed of four segments
Upstream companies: they deal with exploration and production in other word they getting crude out of the ground. These companies experience bad time during low crude prices as the cost of selling price it depend on market situation, while the cost of production is fixed. So if it costs more in production and exploration and costs at which they sell price it gets low, they will incur losses .
Midstream Companies: They deals with moving crude oil and natural gas, example of midstream stuff such as pipelines, tankers rail car etc. Since oil price is low these companies will move oil at the low prices.
Downstream companies they deal with refining manufacturing and selling of products from oil and natural gas like petrochemicals, lubricants and fertilizer. These companies are not affected much because they make profit by purchasing crude or natural gas and selling their product so these companies still make profit even in downturn.
Service companies: they provide man power and help in service in oil and gas companies, example Schlumberger, and Halliburton, This companies during downturn experiencing serious trouble since because they depend on receiving tender from upstream Companies, So they must receive even less payment from operators as a result they incur loss.
How it affect Petroleum professionals
Petroleum companies are not only who feel the pain of this low prices but also it hurts oil and gas workers. As the crude price gets low petroleum companies try to find ways to run their operation with minimum cost and ensuring they are making profit, in order to do so they cut up jobs and laid off its workers. As the oil and gas workers lost their jobs in petroleum companies make them experiencing bad time.
MY FINAL WORD
Low oil price is not a good news to every one because it has it hurts companies in petroleum business as well as oil and gas workers