Continued Job Losses In The Oil And Gas Industry

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The continued job losses in the oil and gas industry has extended to affect support jobs as well. The low oil prices has forced many oil and gas companies to adopt cost-cutting strategies that include announcing a second round of job cuts. The upstream sector has been seriously affected with exploration activities coming to a standstill. New projects and investments in exploration activities have also dried up. The focus has now shifted to the downstream sector. Read this article to learn more about the job losses in the oil and gas industry.

An Estimated 50000 Oil And Gas Jobs Cut From June-September

Amid continuing low oil prices, several oil and gas companies have cut back on projects and turned away from making new investments. This increased the pressure on oil and gas companies to stay profitable, in spite of the low crude oil prices, forcing them to cut back on jobs. Swift Worldwide has estimated that close to 50,000 jobs were cut in the period from June to September.

Rhiannon Meyers said in a recent article:

“Swift Worldwide Resources, an energy recruitment firm, said job losses mounted throughout the summer, with companies shedding 50,000 more positions from mid-June to September as the cuts extended across the industry.”

Supporting Jobs Felt The Brunt Of Job Losses As Well

It was not just the jobs in the oil and gas industry that were affected, but also the support jobs that bore the brunt of the low crude oil price. Those employed in jobs related to oilfield services, oil and gas extraction and mining were affected.

Carolyn Davis said in a recent article:

“Support activity, which includes oilfield services, took the biggest hit, with 7,200 jobs estimated to be lost. The oil and gas extraction workforce (exploration and production) contracted by 1,100.

Mining/extraction employment overall fell by 10.3% month/month from August. Support activity employment fell 7.2%, while oil and gas jobs declined by 1.1%.”

This article talks about the continuing job losses in the oil and gas industry. The job losses are not limited to the oil and gas industry alone, but extend to support jobs as well. While the situation looks grim at the moment, it is not likely to continue. The demand for oil and gas will continue and prices are will see an increase with a reduction in production.