Global job losses in the oil & gas industry have just topped 350,000, more than 43% of the industry’s total workforce worldwide.
By the beginning of this month, the figure was at 351,410 globally with the most severe impact of layoffs focused in the oilfield service sector of the industry, according to a Graves & Co. survey.
“The impetus to cut costs has significantly affected those responsible for finding, developing and producing oil and gas”, said Graves & Co. president, John Graves.
Job Cuts Across The Oil & Gas industry
Layoffs in the upstream production sector began slowly but in recent months, they have surpassed those in the drilling, contracting and supply sectors, reaching 80,265, or just under 23% of total layoffs, while drilling and supply now represent 15% and 14.5%, respectively.
“For a long time, job cuts in the E&P sector lagged behind the oilfield service, drilling and supply sectors as oil and gas producers attempted to hold on to important talent”, Graves explained.
18 US Firms File For Bankruptcy
In some cases, layoffs have not been enough and companies have been forced to take extreme measures. In March and April alone, it has been reported that 18 North American companies had filed for bankruptcy protection and since then, the trend continues.
Yesterday, Linn Energy has filed for bankruptcy after spending a massive amount of money in the shale land grab. From 2012 to 2014, the company was an active acquirer, having purchased around US$10.5 billion of assets (£7.25 billion).
“Like many others in our industry, Linn has been impacted by continued low commodity prices”, Linn Energy Chairman Mark E. Ellis, said.
Also in the US, local driller Newfield Exploration announced plans to relocate up to 15% of its US workforce to cut costs amid low crude prices.
“We’re dealing with challenging market conditions”, said Newfield spokeswoman Cindy Hassler. “Our management felt that centralising in The Woodlands would drive better performance in Oklahoma”, she added.Last updated on 12:35PM - 13/05/16