with Agency Reports
Lagos — A BW Research Partnership data has shown that the oil and gas industry shed nearly 51,000 drilling and refining jobs in March alone.
Low demand due to spreading COVID-19 pandemic has led to low drilling projects and refining in the sector as oil companies cut costs, and experts say the loss could get worse if the virus isn’t contained soon.
The firm had analysed combined data of about 30,000 energy companies around the world.
The US West Texas Intermediate dropped to negative on Monday, sending waves signals of worse time ahead market.
“We’re looking at anywhere between five and seven years of job growth wiped out in a month,” Philip Jordan, the company’s vice president said in an interview. “What makes it sort of scary is this really is just the beginning. April is not looking good for oil and gas.”
Low demand due to the pandemic got worsened by the OPEC+ deal which was a little too late to cushion prices as producers around the world keep pumping with no access to storage.
Crudes are now being offered to buyers at ridiculously cheaper prices.
BW Research projects oil and gas jobs could decline by as much as 30% in the first quarter of 2020.
A supporting report from Halliburton Co. said on Monday, said for every rig crew that gets cut, roughly two dozen field workers lose their jobs describing the current market as a free fall.
The cuts range from Halliburton, which last month laid off 3,500 workers at its headquarters in Houston, to Recoil Oilfield Services LLC, which sacked 50 workers after losing its work with EOG Resources Inc.
Oil explorers cut more than a third of U.S. drilling
Oilfield servicers had the highest rate of job loss as roughly 20 companies are employed at each well site- the explorers who own the wells had filed for bankruptcy.
Last week’s report by BW Research showed that solar panel installers and electric vehicle manufactures lost more than 106,000 jobs last month.
Overall, energy-related jobs fell by more than 303,000 last month, the firm said.