Halliburton Co. is laying off employees at its Bakersfield plant in California in its latest round of job cuts this year, as the U.S. oilfield services firm struggles with falling profits amid slowing oil and gas activity.
The layoffs are expected to impact about 70 employees at the plant, the company said in a filing with California authorities on Dec. 6.
Halliburton said the move was in addition to job cuts at other plants.
The company reported a drop in third-quarter profit earlier in October and vowed more cost cuts to help realize $300 million in annualized cost savings.
It recently closed a plant in El Reno, Oklahoma that impacted about 800 employees. Earlier in October, the company cut 650 jobs across Colorado, Wyoming, New Mexico and North Dakota.
Halliburton—the largest provider of hydraulic fracturing services in the United States—and other oilfield services firms have been struggling as producers cut spending due to weak oil prices.
In 2019, more than 50 frac spreads—or a set number of equipment that a service company uses for hydraulic fracturing—have left the Permian Basin, the largest U.S. oil producing region that spans Texas and New Mexico, according to consultancy firm Primary Vision’s estimates.
Halliburton shares were up 3.6% at $22.19 on Dec. 6.
As long as tariffs on gas remain, traders will be reluctant to commit to deals.
The terms of the trade deal imply an absolutely massive increase in Chinese imports of U.S. energy, and if this actually comes to pass, it will have serious disruptive effects across global markets.
Natural gas, ethane and propane struggle with too much output and more to come.