The U.S. oilfield services sector lost 91,680 jobs due to pandemic-related oil demand destruction, according to a monthly a report compiled and published by trade group Petroleum Equipment & Services Association (PESA) on Dec. 8.
Demand for drilling services sank after oil prices collapsed earlier this year, pushing several oilfield services firms to file for bankruptcy, incur heavy losses and cut jobs. Easing of virus-related restrictions, however, has led to a rebound in demand for fuel and related products.
Oilfield sector employment rose 0.4% in November as companies sought to balance increasing oil and gas production with the uncertainty caused by a surge in COVID-19 cases, which has led to renewed lockdowns and reduced demand, the report said.
Employment rose slightly for a third straight month, with the sector adding an estimated 2,665 jobs in November, compared with 5,091 in October and 1,498 jobs in September, according to preliminary data from the Bureau of Labor Statistics and PESA analysis. However, it was down to 665,836 jobs in November compared to 747,446 a year earlier, a decline of 10.9%. The jobs lost represent annual wages of about $10.3 billion.
Within the sector, companies providing support services for oil and gas extraction saw the most job losses during the pandemic at 77,810, 85% of the sector's total job losses, PESA's analysis found.
Recommended Reading
Pipeline Operator Magellan Says Permian Crude Flows to Houston Will Rise
2023-02-02 - A surge in U.S. oil exports has pushed more and more barrels of crude from the Permian basin of West Texas and New Mexico to the port of Corpus Christi, the top U.S. oil export hub.
Chesapeake CEO, Commonwealth LNG Chair Say Europe Must Prepare for Next Winter
2023-02-02 - In 2022, Europe raced to fill gas storage with LNG imports; now its focus must turn to next year’s winter, top executives at Commonwealth LNG and Chesapeake Energy said Feb. 1 during a panel discussion at the NAPE summit in Houston.
EU Must Extend Gas Demand Curbs to Prepare for Next Winter
2023-02-02 - Policymakers should underpin future demand reduction targets by encouraging a structural shift away from gas, says Bruegel.
TotalEnergies, Iraq See Further Delays to $27 Billion Energy Deal
2023-02-02 - Amid differences with Baghdad, TotalEnergies has asked its foreign employees in Iraq to leave the country and local staff to work from home.
European Gas Prices Mixed on Cold Weather Forecast, Strong LNG Flows
2023-02-02 - British and Dutch wholesale gas prices were mixed on Feb. 2 on cold weather forecasts, reduction in gas storage and Norway outage, although strong flows of LNG were lending some support.