Oil and gas job cuts top 350,000 worldwide

Worldwide job losses in the oil and gas industry have just topped 350,000. As of May 6, announcements of reductions in force reached 351,410 globally, according to Graves & Co. The impact of layoffs has been most severe in the oilfield service sector of the industry, with 152,015 layoffs, or over 43% of the total worldwide.  

Layoffs in the upstream exploration and production (E&P) sector of the oil and gas industry 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.

O&G job cuts worldwide

Numbers

Percent

Service

152,015

43.26%

Drilling

52,709

15.00%

Supply

50,765

14.45%

E&P

80,265

22.84%

Downstream

12,033

3.42%

Midstream

3,514

1.00%

Legal Services

109

0.03%

TOTAL as of May 6, 2016

351,410

100.0%

“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,” said John Graves, president of Graves & Co.  “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. Begun in January 2015, the count includes announcements beginning in June 2014, the month that crude oil prices began a downward slide.

Graves & Co. provides transaction service and support to the oil and gas industry in the form of due diligence, asset evaluations, and advisory services.

 

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