Huge drop in value - Mining/Gas/Ag town - what to do??

Discussion in 'Investment Strategy' started by MBO, 1st Feb, 2016.

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  1. tavinium

    tavinium Well-Known Member

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    I work for a company who service the oil and gas industry, and at the end of 2014 I returned back from Brisbane after spending 3 years completing phase 1 on one of the mega projects. Working in the project office and monitoring resource demand curves was part of my job. The team I ran shrank by 80% over only a couple months mid 2013. Then shortly after the whole 7 floor office, once so full you'd have to work in the lunch room if you failed to arrive by 7:30am, got shut down. Also, the trend was clear that businesses were moving to accommodate their site staff in company set up camps instead of local housing, for a whole host of reasons I won't go into.
     
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  2. tavinium

    tavinium Well-Known Member

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    In summary, the project sizes and concentration in same area were unprecedented. It's unlikely they will ever reach same size in the mid to long term. Over time other industries will grow to fill the void.
     
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  3. JDP1

    JDP1 Well-Known Member

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    Yes and that is already happening to a much higher degree. Imo..the talk about all kinds of resources and commodities is talked about much less now on the street in brisbane than say 5yrs back.
    Most people probably realise theyve gotta develop heavy hitting non resources based industries...especially bigger projects non mining like they do down south. Certainly the politicians have realised that and are courting the private sector to deliver those kinds of projects and yhe private sector seems yo be responding favourably.
     
  4. Truly Exotic

    Truly Exotic Well-Known Member

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    Im in the strong belief that minung towns do not follow the cycles of general real estate cycles

    ie just because an area has been deserted by mining companies does not make it more likely for them to come back.