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Oil Jobs Lost: 250.000 And Counting, Texas Likely To See Massive Layoffs Soon

Oil Jobs Lost: 250.000 And Counting, Texas Likely To See Massive Layoffs Soon

Crude oil just capped off a third straight week of declines, as WTI nears the $40 per barrel threshold. Goldman Sachs is once again raising the possibility of oil dipping into the $20s per barrel.

That spells more pain for the energy sector. Many companies have already slashed spending and culled their payrolls, but the total number of job losses continues to climb.

According to Graves & Co., an industry consultant, oil and gas companies have laid off more than 250,000 workers around the world, a tally that will rise if oil prices remain in the dumps.

Related: Oil Finds Some Support As WTI Hits $40 Mark

“I was surprised it’s gotten this far,” Graves & Co.’s John Graves told Bloomberg in an interview. In an eye-catching statistic that highlights who exactly is bearing the brunt of the downturn, Graves says that oilfield service companies account for 79 percent of the job losses.

Still, upstream E&P companies are also being substantially squeezed by another plunge in oil prices. According to an analysis by the Texas Alliance of Energy Producers, a new round of layoffs could be underway in Texas, for example. The Texas Alliance predicted that the first drop in oil prices last year would lead to 40,000 to 50,000 layoffs in Texas. But the renewed drop since the end of the summer could force many more cuts. Right now, the group is putting a conservative estimate at 56,000 job cuts so far, but they say the real tally is probably higher.

Related: Besides Europe, Saudis To Capture Russian Market Share In China

Beyond oilfield services and E&Ps are not the only ones feeling the heat. Pipeline companies are also starting to lay off workers as well. Last week Enbridge confirmed that it was laying off 500 workers and leaving 100 positions unfilled, according to the Financial Post. The job losses account for about 5 percent of Enbridge’s North American workforce.

Fellow Canadian pipeline company TransCanada says that it will be issuing pink slips as well. While TransCanada confirmed that it would cut payroll, it declined to put an exact number on how many people would lose their jobs. TransCanada, reeling from the rejection of the Keystone XL pipeline, is struggling to get several major pipeline projects through the permitting phase, although it just won the go-ahead to build a large natural gas pipeline in Mexico.

By Charles Kennedy of Oilprice.com

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  • SH on November 23 2015 said:
    Think you mean 250,000 not 250.000

    Very bad typo to have on a title and not even check it
  • AM on November 23 2015 said:
    @SH The site is not based in the USA. Most of the rest of the world uses periods instead of commas to separate these numbers. Not a typo. Just you didn't even check to see where the site is from.
  • Bad Santa on November 24 2015 said:
    @ SH

    Yes, semantics was always at the forefront of solving any unemployment problem so far. NOT.

    And yes, if you failed to recognize the issue here, go visit Disney website. I am sure that will make wag your tail.
  • mulp on November 24 2015 said:
    I thought cheap energy was the key to massive job creation, not massive job cuts!

    We're all those Conservative Republicans purposely lying?
  • Pounce on November 24 2015 said:
    SH: You mean to say "in" a title? "On" may only be used in conjunction with a property title. Grammar-check, please.
  • Doc Mercury on November 24 2015 said:
    "According to Graves & Co., an industry consultant, oil and gas companies have laid off more than 250,000 workers around the world, a tally that will rise if oil prices remain in the dumps."

    So, there's our choice, everybody. Either we lay off 250,000 people and have gas cost what it did before Obama took office, or we let the eco-nuts win and lay off 250,000 people and have gas prices be quadruple what they are now.

    Hmm, tough call!
  • Thomas on January 13 2016 said:
    It stupid people have lose jobs because of this. Sitting here watching all the coverage that the media and other sources that are trying use to convince the public that the low oil prices is the doom for all. What I see is an attempt to make everyone feel some sort of guilt by posting job losses and that high oil(and gas) are good for a strong economy and I call complete BULL. Has gas prices fallen in your city? if the answer is no , then the likely cause false hopes, predication and greed. In my honest opinion those jobs that were lost will be better in the long run for the Earth. One can Consume and poison the planet and be called evil ,but slap a title on it and call it a "Job" toss in a few pictures of smiling babies and rugged looking American dude and everything will be okay. Having a job does not mean that we have to be irresponsible. Something tell me that in the back of all those employee heads they knew the day would come when we all said "okay that's enough oil " and they have to move on. I will return to this thread to play Wack-a Mole for a while, interested to see what kinda angles folks would like to use to justify these oil prices.
  • Ramsey on January 17 2016 said:
    1.2 million green job opportunities posted across the United States from January to March 2015 according to eco-tech institutes first-quarter 2015 clean job index. This more than balances out oil jobs plus the benefits of our health and less importance of what goes on in the Middle East.
  • whodathunk. on February 27 2016 said:
    Uncle Samuel is depressing low oil prices in order to hurt the Russian economy, hence theirs is oil based. They do this in spite of the the American tax payer slave. Oh well stars search is in 20 min.

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