Oilfield Services and Equipment Sector’s Job Losses Surpass 100,000
The US oilfield services (OFS) and equipment sector lost approximately 2,600 jobs in August, according to preliminary data from the Bureau of Labor Statistics (BLS), the lowest total since the onset of the COVID-19 pandemic in March.
The monthly “Oilfield Services and Equipment Employment Report” compiled and published by the Petroleum Equipment & Services Association (PESA) shows total job losses reached 103,420 in August. OFS employment is down more than 121,000 jobs since August 2019 and is at its lowest point since March 2017.
Using BLS data, PESA, in consultation with researchers from the Hobby School of Public Affairs at the University of Houston, estimated OFS sector jobs in the US dropped 13.5% from 764,189 in February to 660,170 in August. Losses were heaviest in April, totaling 59,306 jobs—the largest 1-month total since at least 2013.
States with the most job losses in 2020 include Texas (59,000), Louisiana (10,200), and Oklahoma (9,200).
States with 4,000 or more OFS jobs lost in 2020
- Texas 59,000
- Louisiana 10,200
- Oklahoma 9,200
- Colorado 5,000
- New Mexico 4,500
- California 4,500
- Pennsylvania 4,400
OFS employment year-over-year fell 15.5% from 781,946 jobs in August 2019 to 660,770 in 2020, representing annual wages of approximately $13.1 billion.
PESA said the job losses slowed in August as companies began taking steps to restart oil and gas production, but COVID-19 could stall economic recovery and suppress demand. Its analysis of Small Business Administration data found that approximately 180,000 OFS jobs were supported by loans from the Paycheck Protection Program.
Getting Serious About Transformation: Business Unit Changes Aren’t Enough
Deloitte discusses the “great compression” of the oil and gas industry in which companies’ room to maneuver is restricted. How can the industry avoid a talent gap and stop an organizational challenge from becoming a precarious business problem?
Keystone XL Operator TC Energy Will Have a New Top Boss in 2021
One of North America’s biggest midstream companies is getting a new chief in the new year. He will oversee the construction of a 1,200-mile-long pipeline that has been a decade in the making.
COVID-19 Pushes OFS Headcount to Lowest Level in Over a Decade, Revenue Per Employee Set to Decline
Among the top 50 oilfield service firms, downsizing is estimated to land at a headcount of 610,000, down from the 760,000 maintained after the 2016 downturn.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
07 October 2020
08 October 2020
09 October 2020