The recent years of depressed oil prices and industry uncertainty have been the source of strict CAPEX (capital expenditures) cuts for oil and gas companies worldwide. Layoffs came in droves, much to the detriment of the industry’s workforce.
As of Feb. 10, 2017, the total number of oil and gas layoffs around the globe is 441,371, according to data compiled by Houston-based consulting firm Graves & Co.
Source: More Than 440,000 Global Oil, Gas Jobs Lost During Downturn
The Texas economy may be set to bounce back after weathering the worst of the plunge in oil prices, according to a Federal Reserve Bank of Dallas economist.The pace of new jobs created in the state is outpacing the rest of the nation, increasing by 3.2 percent in July and 2.6 percent in August. New hiring is expected to increase by 2.3 percent in the back half of the year. Future outlook data on Texas manufacturing nearly quadrupled in September, in a sign production is expected to expand. It would be the first time in nearly two years that Texas manufacturing would be expanding on a consistent basis.
Source: Texas may have made it through the worst of oil bust – Dallas Business Journal
Houston-based Noble Energy Inc. (NYSE: NBL) plans to cut additional jobs before the end of the year, the Houston Chronicle reports.
The exact number of affected jobs hasn’t been disclosed, but a spokeswoman told the Chronicle the cuts would be “very limited” and will focus on exploration positions.
Noble made multiple rounds of job cuts last year. In April 2015, the company announced it would cut about 220 jobs across several locations as part of an organizational realignment in the U.S.
Source: Noble Energy plans additional job cuts focusing on exploration – Houston Business Journal
National Oilwell Varco Inc. (NYSE: NOV) plans to cut more Houston jobs as it consolidates locations, the Houston-based company told the Texas Workforce Commission.The oil field equipment and services company will relocate work from its SHP facility at 1530 W. Sam Houston Parkway in west Houston to its FM 529 facility in northwest Houston, according to a Worker Adjustment and Retraining Notification letter sent to the TWC. The entire SHP facility will be consolidated with the 529 facility, the letter stated.
Source: National Oilwell Varco to consolidate Houston facilities, cut jobs – Houston Business Journal
Houston-based Baker Hughes Inc. (NYSE: BHI) plans to begin a temporary furlough program for some employees.“In response to challenging industry conditions, Baker Hughes has implemented a temporary 5 percent pay reduction for certain U.S. employees during the last 14 weeks of 2016, while providing those employees four additional paid holidays,” according to a statement provided by a Baker Hughes spokeswoman. “These efforts will allow us to lessen the need for additional workforce reductions while remaining focused on serving customers and maintaining safe, compliant operations.”
Source: Baker Hughes to cut pay in effort to avoid more job cuts – Houston Business Journal
Two years ago, Reg MacDonald’s 20-day drilling classes were packed to capacity, with nearly 40 students eager to land lucrative jobs in the booming oil and gas industry. Now he is lucky if he gets half a dozen to enroll.The latest rout in oil prices has been the last straw for many workers just getting back on their feet after the last downturn in 2008, said MacDonald, president of Maritime Drilling Schools Ltd in Nova Scotia, Canada, which trains both entry-level and experienced workers for oilfield jobs all over the world.”It’s not stable. It’s too cyclical. You get ahead and you lose,” said MacDonald, who has been in the industry since the mid-1970s.Supply outages brought oil prices close to $50 a barrel that many U.S. shale producers say they need to lift output, and drilling has picked up in some of the best oil patches.Conversations with larger producers, contractors and suppliers suggest, however, that any recovery will look very different from the 2009-2014 shale boom that nearly doubled U.S. crude output and turned it into one of leading global producers.
Source: Depleted crews, idled rigs lie in shale oil’s path to revival | Reuters
The oil industry is fighting a generation gap.Already contending with a global price slump, U.S. explorers are also grappling with the demographic hangover of the last great industry downturn in the 1980s, when scores of drillers went out of business. That rout drove a generation away from the business, leaving a shortage of workers in their late 30s to 50s today just as companies try to replace the Baby Boomers who make up much of senior management.What the industry calls the Great Crew Change — the looming retirement of thousands of older workers — has companies trying to plug the gap by training younger employees, recruiting outside the industry and enticing veterans to hang on longer. It’s also forced drillers into a delicate balancing act amid the current downturn, as they lay off thousands but try to hold on to hard-to-replace scientists and engineers.
Source: Lost Generation of Oil Workers Leaves Few Options for Next Boom – Bloomberg
A Texas oil economist said job prospects for those working in the energy sector are mediocre at best even as markets start to return to relative stability. Crude oil prices have held at or near the $50 per barrel mark for the better part of June as markets start to show a reasonably adequate balance between supply and demand. A surplus of oil on the market, coupled with weak demand, sent crude oil prices tumbling from above $100 per barrel in 2014 to below $30 per barrel early this year. For Texas, Karr Ingham, an economist who created a series of metrics to gauge the health of the state energy sector, says job losses are mounting in the oil and gas sector. “The last time industry employment was this low was in late 2010, as the last expansion of upstream oil and gas activity in Texas was just beginning to take off,” he said in an emailed statement. The Federal Reserve Bank of Dallas said in a regular review of the regional economy the pressure from low oil prices was spilling over to other parts of the economy, with banks in southern U.S. states facing increasing risk. While outperforming its peers elsewhere in the country, the Federal Reserve Bank said profitability is on the decline. The city of Houston, which hosts the headquarters of dozens of national and international energy companies, is facing prolonged headwinds following fits and starts over the last several quarters.
Source: Texas survey finds oil and gas job losses mounting – UPI.com
Offshore drilling giant Ensco PLC (NYSE: ESV), which cut hundreds of jobs last year, will stack three drillships and a semisubmersible rig, affecting 350 offshore jobs.Ensco is still finalizing plans, but the cuts are expected to begin May 11, the company told the Texas Workforce Commission in a Worker Adjustment and Retraining Notification Act letter. All of the employees report to the Ensco Offshore Co. office at San Felipe Plaza at 5847 San Felipe, suite 3500.
Source: Ensco to stack drillships, semisubmersible rig, cut offshore jobs – Houston Business Journal
Raul Sanchez, a former senior operations engineer for GE Oil & Gas in Houston, TX has been laid off for about a year. He has interviewed at more than 30 companies so now he is trying a different approach.