• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 13 hours Energy Armageddon
  • 3 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 5 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 5 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 5 days The Federal Reserve and Money...Aspects which are not widely known
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days Goldman Betting on Cryptocurrencies
  • 9 days Сryptocurrency predictions
  • 14 days Putin and Xi Bet on the Global South

Halliburton Cuts Jobs, Executive Pay

Halliburton has laid off 350 workers in Oklahoma as the squeeze of oil prices on the industry forces companies to shrink their operations. The Houston Chronicle reported the layoffs citing a filing with the state employment watchdog, and Halliburton later confirmed it.

"This was a difficult decision, but is a necessary action as we work to successfully adapt to challenging market conditions," Halliburton said in a statement. "As we make workforce reductions, we are taking numerous other actions to reduce our costs, including reducing the salaries of the Halliburton Executive Committee."

The oil industry is feeling the cost-reduction drive across the entire sector as oil trades lower than breakeven prices. And even though many producers in the U.S. oil patch have hedged their output for this year at higher rates, they are seeking to minimize the impact of the oil price crash on their operations. Rystad Energy reported earlier this year that 30 companies accounting for 38 percent of total U.S. production this year had hedged their output at an average price floor of $56 a barrel. 

But they are cutting costs.

As in the last crisis, oilfield service providers will likely be harder hit than exploration and production players. Already at least two companies have asked for deep discounts on these services, of about 25 percent, to weather the crisis. At the same time, they are cutting spending, meaning that production growth is about to slow down soon, and so is hiring.

The last industry downturn caused by low prices cost the U.S. oil industry—including oilfield services—as many as 200,000 jobs. That was about a third of the total workforce employed in the sector. Now, the U.S. oil industry could be looking at a rerun--potentially a worse one--because unlike last time, this time the excessive production of oil is adding to a slump in demand caused by the spread of Covid-19 that has put most of Asia, Europe, and North America on lockdown.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News