Over the year, employment in oilfield services decreased by more than one hundred thousand people

21.06.2020       

Employment in the oilfield services and equipment sector continues to decline in May. A study by the Petroleum Equipment and Services Association (PESA) found that employment in the oil equipment and equipment services (OFS) sector fell by nearly 15,000 jobs in May, leaving an overall job loss as a result of pandemic-related demand destruction. , amounted to more than 84,000 people. Employment in oilfield services has decreased by 105,000 jobs since May 2019 and is now at its lowest level since 2017.
Using data from the Bureau of Labor Statistics (BLS), PESA, in consultation with researchers from the University of Houston, job estimates in the US oilfield services sector decreased from 764,189 in February to 679,281 in May, down 11.1. %. Losses were heaviest in April, at 59,666 jobs. Employment in the oilfield services decreased year-on-year from 785,106 jobs in May 2019 to 679,281 in 2020, a decrease of 13.5%. The loss of jobs is approximately 11.4 billion dollars a year. Industry analysts expect additional job losses in the coming months as the oil and gas industry continues to cut production by shutting down wells and reducing the number of rigs.
Due to limitations in BLS data and the difficulty of accurately tracking and categorizing vacations, this analysis is likely to be significant. underestimates the actual loss of jobs in the oilfield services sector. Many oilfield services companies have 25-50% of their workforce currently on vacation. Some of the largest companies in the sector are expecting thousands of layoffs in the near future.
ESA is the association representing the oilfield services sector. PESA includes companies involved in the production of oilfield equipment, drilling, well completions and much more. Job losses could jeopardize the energy supply chain, debilitating a sector that develops technologies that increase efficiency, improve environmental performance and reduce greenhouse gas emissions. Oilfield employment was estimated by analyzing data released by the US Bureau of Labor. Statistics and covers the economic activities of oilfield services companies, which include oil and gas production, construction and manufacturing. Total employment is estimated using the quarterly census of employment and wages,