Worldwide job losses in the oil and gas industry have just topped 350,000, according to analysis by Graves & Co. transaction service on May 9. As of May 6, announcements of reductions in force reached 351,410 globally, and the impact of layoffs has been most severe in the oilfield service sector of the industry, with 152,015 layoffs, or more than 43% of the total worldwide, Graves said.
Layoffs in the upstream E&P sector began slowly and for many months were much lower than the service, drilling and supply sectors. In recent months, job cuts in the E&P sector have surpassed those in the drilling contracting and supply sectors, reaching 80,265, or just under 23% of total layoffs, while drilling and supply now represent 15% and 14.5%, respectively, according to Graves.
“For a long time, job cuts in the E&P sector lagged behind the oilfield service, drilling and supply sectors as oil and gas producers attempted to hold on to important talent,” John Graves, president of Graves & Co., said. “As the downturn has persisted beyond the expectations of many in the industry, the impetus to cut costs has significantly affected those responsible for finding, developing and producing oil and gas.”
The Graves & Co. job cuts count is based upon public announcements, WARN Act notices and extrapolations from the Baker Hughes rig count. It began in January 2015 and includes announcements beginning in June 2014, when crude oil prices began falling.
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