• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 19 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Reality catching up with EV forecasts
  • 6 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 hours 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
  • 6 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 11 days The Federal Reserve and Money...Aspects which are not widely known
  • 16 days US Oil Independence is a myth and will always be a myth

Nearly 85,000 Jobs In U.S. Oilfield Services Lost To Oil Crisis

Nearly 85,000 people in the U.S. oilfield services industry have lost their jobs due to the pandemic-driven oil price crash and demand destruction, Houston-based Petroleum Equipment and Services Association (PESA) said in a new analysis this week, warning that it is likely significantly underestimating the jobs losses in the sector.

According to PESA’s analysis of Bureau of Labor Statistics (BLS) data, 84,908 jobs in the oilfield services sector were lost between the start of the demand and oil price collapse until the end of May.

Compared to employment figures in May 2019, oilfield services employment is down by 105,000 jobs, and is now at its lowest point since 2016, PESA said. Employment in the oilfield services and equipment (OFS) sector declined by 13.5 percent from 785,106 jobs in May 2019 to 679,281 jobs in May 2020.  

ADVERTISEMENT

“Industry analysts anticipate additional job losses in the coming months as the oil and gas industry continues cutting production by shutting in wells and reducing rig counts,’’ PESA said, warning that its analysis may be severely underestimating the job losses, due to limitations within the BLS data and the difficulty of accurately tracking and categorizing furloughs.

Many oilfield companies have up to half their workforce currently on furlough, while some of the largest companies in the sector expect to lay off thousands in the near future, PESA said.

ADVERTISEMENT

Halliburton, for example, reduced the number of staff at its headquarters by 22 percent or about 1,000 people in May, after saying in mid-March that it would furlough 3,500 employees for two months and after it laid off 350 workers in Oklahoma in April. 

According to a Rystad Energy analysis of Bureau of Labor Statistics data, the U.S. oil and gas labor market is amongst the world’s most severely hit by the downturn that the Covid-19 pandemic has brought. More than 100,000 oil and gas jobs have already been lost in total, with most of them coming from the support activities market. 

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


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