Job Losses Galore Across The Energy Sector: What Lies Next?
Zacks Investment Research | Jan 09, 2020 09:19PM ET
The .
Halliburton noted that for operators in North America where oil production hit record levels, it’s more about returns than growth now. This Houston-based oilfield service provider perceived that to bolster its operational excellence despite a tough market landscape, it needs to check expenses by a huge margin.
Further, Texas-based National Oilwell Varco, Inc. (NYSE:NOV) announced that it will retrench 85 personnel as it plans to shutter its equipment-making operations for offshore and onshore drilling rigs at its Galena Park facility due to the persistent drop in shale business, which in turn, induced a fall in drilling and completion activity in the United States and Canada.
Moreover, Pumpco Energy Services, Inc., an affiliate of Superior Energy Services, Inc., widely known for delivering fracking services for well-digging completions, recently made 112 workers redundant at its Odessa, TX-based site. While RPC Inc. (NYSE:RES) too confirmed to reduce part of its workforce.
What Lies Ahead?
The uncertainty around oil prices means that the commodity's future movement is anybody's guess. However, fundamentals suggest that the odds are firmly stacked against an immediate turnaround. And if there’s any further price decline, especially below the $55-a-barrel level, it would leave a significant impact on small-to-mid-tier entities, triggering another spate of job losses.
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