The U.S. Coal Industry Is Declining Irreversibly

Nearly 85,000 folks within the U.S. oilfield companies industry be pleased lost their jobs as a result of pandemic-driven oil model break and ask destruction, Houston-primarily based fully Petroleum Tools and Products and companies Affiliation (PESA) said in a brand new analysis this week, warning that it’s miles seemingly greatly underestimating the jobs losses within the sphere.

In step with PESA’s analysis of Bureau of Labor Statistics (BLS) info, 84,908 jobs within the oilfield companies sector were lost between the initiate up of the ask and oil model cave in until the quit of Would possibly perhaps perhaps furthermore.

Compared with employment figures in Would possibly perhaps perhaps furthermore 2019, oilfield companies employment is down by 105,000 jobs, and is now at its lowest point since 2016, PESA said. Employment within the oilfield companies and instruments (OFS) sector declined by 13.5 p.c from 785,106 jobs in Would possibly perhaps perhaps furthermore 2019 to 679,281 jobs in Would possibly perhaps perhaps furthermore 2020.  

“Industry analysts watch for additonal job losses within the arriving months because the oil and gasoline industry continues cutting manufacturing by shutting in wells and cutting back rig counts,’’ PESA said, warning that its analysis is at threat of be severely underestimating the job losses, due to boundaries interior the BLS info and the distress of accurately monitoring and categorizing furloughs.

Many oilfield corporations be pleased up to half of their workforce currently on furlough, whereas a pair of of the ideal corporations within the sphere seek info from to lay off thousands within the plan future, PESA said.

Halliburton, shall we reveal, diminished the series of workers at its headquarters by 22 p.c or about 1,000 folks in Would possibly perhaps perhaps furthermore, after announcing in mid-March that it will probably perhaps furlough 3,500 workers for two months and after it laid off 350 workers in Oklahoma in April. 

In step with a Rystad Energy analysis of Bureau of Labor Statistics info, the U.S. oil and gasoline labor market is amongst the enviornment’s most severely hit by the downturn that the Covid-19 pandemic has introduced. Bigger than 100,000 oil and gasoline jobs be pleased already been lost in total, with most of them coming from the strengthen activities market. 

By Charles Kennedy of Oilprice.com

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