Oilfield company U.S. Well Services will eliminate 171 jobs in Texas, according to a filing with the Texas Workforce Commission on June 2, as it prepares to exit the diesel hydraulic fracturing market.
The Houston, Texas-based company in 2014 became the first to use electric hydraulic fracturing fleets, a technology that has become increasingly popular as more oil and gas companies look for ways to lower their carbon footprints.
Last week, U.S. Well Services said it would exit the diesel frack market and sell certain associated equipment to a privately held buyer. The layoffs will take place in July, the filing said.
The job cuts are due to the transition away from the diesel market, the company said on June 2.
Law is the first in the US that requires fossil fuel divestment for officials.
“The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer,” said Reliance Industries Chairman Mukesh Ambani, Asia’s richest man, at a shareholder meeting.
For producers, the calculation is that even if demand for oil and gas falls, they will still be able to sell their precious commodities for years to come and be the “last man standing.”