Schlumberger oil emplyment situation

The drop in oil prices threatens to drag thousands of oil rig jobs. Several companies linked to oil sector have announced cuts and restructuring because of the drop in oil price; for each floor of $ 10, an oil loses 4,500 million dollars in annual revenue, analysts say.

In America, more than 15% of the rise in employment since 2008 has come from the oil energy industry.

The collapse in oil prices could destroy thousands of good paying oil rig jobs in the United States and the world.

The bad news already started flowing this week: Halliburton said it plans to cut 1,000 oil rig jobs due to the depressed state of the oil market, and the British BP announced an unspecified number of oil rig job cuts as part of a restructuring plan of 1,000 billion. And surely they will more oil rig job cuts.

On Monday, ConocoPhillips was the first major US oil company to reveal that reduced its spending by 2015, a move the CEO described as "prudent given the current environment."

It is true that the loss of employment is not yet widespread. Oil would have to fall much more to many companies in the industry would no longer be profitable.

However, there are reasons for concern. The rise of oil shale in the United States has become a key pillar of the economy in recent years, creating well paid oil rig jobs at a time when other industries reduced staff jobs.

According to Fatima Iqbal of Azzad Asset Management, over 15% of the total increase in employment since early 2008 have come from the oil energy industry, even though it constitutes less than 1% of employment in the country. "A prolonged crisis in the oil energy sector could jeopardize those oil rig jobs," he said.

Fadel Gheit, oil and gas analyst for Oppenheimer & Co., is more pessimistic. He thinks that many oil companies are divorced from reality. "Everyone talks about the $75 barrel... maybe they live on another planet," he said, because oil is currently trading around $58.

And based its reasoning on the following: Saudi Arabia, OPEC's largest oil producer, is basing its national budget on a price of $ 60. Kuwait, another heavyweight of the Organization is calculating its budget based on $ 55. That means they expect low prices persist in the long term.

While few expected Gehit layoffs in the oil industry in the coming months, he believes things will get much worse before composed. "Companies do not want to overreact. They want to wait until the dust settles, but tempers are scrambled, "he explains. "Wishful thinking is not a strategy, is to deceive."

Although many analysts believe that, in industry, small businesses with large debts are the main victims of low oil prices, Gheit argues that large firms should also be nervous.

It ensures that as a rule, for every $ 10 drop in the oil, a company like Exxon Mobil lost 4,500 million dollars in annual revenue. And because oil has plummeted more than 40% in recent months, the math does not look promising.

If oil remains low, more mergers are inevitable and cuts capital spending, anticipated Gheit. Both likely result in oil rig jobs cuts.

"I wish I had a formula to know when the bleeding will stop. We must plan for the worst and hope for the best. "

Halliburton eliminating 9,000 oil rig jobs because of falling oil prices

The winners of the low oil prices are the countries that are net oil importers and industries with high fuel costs, since it is likely to experience beneficies if prices remain low.

Collin Eaton

Halliburton cut 9,000 oil rig jobs in the last quarter of 2014 and the first quarter of this year due to falling oil prices and may have to lay off more employees at the end of June, he said on Monday investors the chief financial officer of the oil company.

Those 9,000 oil rig jobs represent more than 10 percent of the global workforce of the oil services company, said Christian Garcia, interim chief financial officer of Halliburton, in a telephone call.

This comes just days after the company Schlumberger announced it would cut up to 20,000 oil rig jobs, surpassing their previous cuts of 6,400 oil rig jobs.

This absorbed $ 823 million in asset impairment and other costs as the energy crisis forced him to reduce the price of its oil equipment and fire staff. Garcia said he expected workers' compensation costs are smaller than in the past.

During the call, the president of Halliburton, Jeff Miller, offered an optimistic market outlook in North America, despite the current crisis.

He said that although his firm margins in North America were affected by falling oil prices, the region could recover quickly when oil prices experience a rebound.