Oilfield contractors and firms are likely to cut more than one million jobs this year, a new Rystad Energy analysis reveals. The cuts are in response to an unprecedented one-two punch to the sector, which has seen the price of oil collapse and projects slowed to protect against the spread of coronavirus.The shale industry will see the deepest cuts, Rystad said. It could shrink by more than 30%. Visit Business Insider’s homepage for more stories.
More than one million oilfield service jobs are likely to be cut this year in the wake of the spreading coronavirus and historic oil price crash, according to an analysis published today by the research firm Rystad Energy.That represents a 21% reduction in the global oilfield service (OFS) industry, Rystad says.Employing more than 5 million people, the OFS industry is responsible for everything from finding new oil to constructing wells. Service firms in the shale industry will be hit the hardest, Rystad says, perhaps seeing cuts of up to 32%, as the price shock threatens new drilling activity. We need your help: Have you or an acquaintance been laid off by an oil company? Please contact us at firstname.lastname@example.org or through the secure message app Signal at (646) 768-1657.
Oil pumps at sunset in the desert oil fields of Sakhir, Bahrain
The unprecedented one-two punch to the oil industryThe oil industry is no stranger to a boom-and-bust cycle, yet the recent price shock remains unprecedented, David Doherty, an oil analyst at the research firm BloombergNEF, said.
“Normally you get a supply shock or a demand shock,” he said. “You don’t get both of them all at once.” In the past month, the spreading coronavirus has all but evaporated demand for oil as airlines ground pla
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