USA – JOB LOSSES DUE COVID-19 PANDEMIC REACH 94,000

The Oilfield Services and Equipment Employment Report, published monthly by the Petroleum Equipment and Services Association (PESA), found that employment in the oilfield services and equipment (OFS) sector fell by more than 8,600 jobs in June, bringing total job losses due to pandemic-related demand destruction to nearly 94,000. Oilfield services and equipment (OFS) employment is down 116,000 jobs from June 2019 and is at its lowest point since March 2017.
Using Bureau of Labor Statistics (BLS) data, PESA, in consultation with researchers from the Hobby School of Public Affairs at the University of Houston, estimates OFS sector jobs in the U.S. dropped from 764,189 in February to 670,480 in June, a decline of 12.3%. Losses were heaviest in April, totalling 59,306 jobs — the largest one-month total since at least 2013.
OFS employment year-over-year fell from 785,106 jobs in June 2019 to 670,480 in 2020, a decline of 14.8%. The jobs lost represent annual wages of approximately $12.5 billion.
While the rate of OFS job losses has slowed, industry analysts remain concerned about future job losses as COVID-19 cases rise throughout the US. Rising infection rates may depress economic activity as communities are forced back into quarantines.
The BLS report includes information about a classification error in recent months they believe is causing the agency to underestimate unemployment numbers. According to BLS analysis, data collectors have been misclassifying some workers temporarily separated from their jobs (such as furloughs or temporary layoffs). The error, while significantly reduced in the June data, persisted, BLS says. These errors have likely caused a similar under-estimation of OFS job losses by PESA. Many OFS companies have 25-50% of their workforce currently on furlough.
PESA analysis of Small Business Administration data found that approximately 30,000 OFS jobs have been supported by loans from the Paycheck Protection Program.
According to PESA’s analysis, the following states have lost 4,000 or more OFS jobs in 2020:
• Texas 57,000
• Louisiana 9,700
• Oklahoma 8,800
• Colorado 4,800
• New Mexico 4,300
• California 4,300
• Pennsylvania 4,200
PESA is the trade association representing the OFS sector, which includes companies involved in oilfield equipment manufacturing, drilling, well completions, pressure pumping and more. Job losses jeopardize the energy supply chain by draining the sector of the innovative men and women who develop technologies that increase efficiency, improve environmental performance, and reduce greenhouse gas emissions.
OFS employment was estimated by analyzing data published by the U.S. Bureau of Labor Statistics and covers the economic activities of OFS companies, which include oil and gas extraction, construction and manufacturing. Total employment is estimated using the Quarterly Census of Employment and Wages, published by BLS, and jobs data reported by BLS monthly.
(Source: PESA – Slip and cut drilling line in North Dakota)

1910: SHELL FINDS FIRST OIL IN MIRI

March 18, 2018

Malaysia and Miri have a special place in the history of Shell worldwide because it was in this region that the company first puts its roots down. Marcus...

Read More+
ENI JOINS MIT AND CFS TO DEVELOP COMMERCIAL FUSION ENERGY

March 17, 2018

Eni and Commonwealth Fusion Systems (CFS), a spin-out of the Massachusetts Institute of Technology, have signed an agreement that will allow Eni to acquire...

Read More+
COSL PROSPECTOR ARRIVES TO THE NORTH SEA

March 17, 2018

COSL Drilling Europe, a subsidiary to China Oilfield Services Limited, Beijing, China, advised that the semi-submersible COSL Prospector arrived in Norway...

Read More+
OMV ACQUIRES SHELL’s ASSETS IN NEW ZEALAND

March 16, 2018

OMV, the international integrated oil and gas company based in Vienna, has agreed to acquire Shell’s Upstream business in New Zealand comprising joint...

Read More+
PHILIPPINES: ALEGRIA FIELD DECLARED COMMERCIAL

March 16, 2018

Philippines’ Energy Secretary Alfonso Cusi and China International Mining Petroleum (CIMP) have jointly declared an oil field in Alegria town in southern...

Read More+
KONGSBERG DYNAMIC SIMULATOR FOR MAD DOG PHASE 2

March 16, 2018

BP has awarded Kongsberg Digital a milestone contract to design, engineer, build, install, and perform acceptance testing of a sophisticated digital twin....

Read More+
ENI REPORTS RECORD PRODUCTION FROM NOOROS FIELD IN EGYPT

March 16, 2018

Eni has strengthened its record production from the Nooros gas field, offshore Egypt, which reached a production of 32 million cubic meters per day, equivalent...

Read More+
STATOIL BANS THE WORD OIL AND BECOMES EQUINOR

March 15, 2018

The board of directors of Statoil proposes to change the name of the company to Equinor. The name change supports the company’s strategy and development...

Read More+
IRAN: EARLY PRODUCTION OF AZAR FIELD STARTED

March 15, 2018

Kayvan Yar-Ahmadi, manager of Azar development project, says completion of newly drilled wells in this field will bring production to 60,000 b/d this March....

Read More+
ARO DRILLING SELECTS NEW JACKUP DESIGN FOR NEWBUILDS

March 15, 2018

International Maritime Industries (IMI) and long-term partner Saudi Aramco Rowan Offshore Drilling Company (ARO Drilling), have selected a new LJ43 rig...

Read More+
WESTINGHOUSE TO SUPPLY FUEL TO VVER-440 REACTORS

March 14, 2018

Westinghouse Electric Company and its eight European consortium partners today announced the successful completion of an EU funded project targeted at...

Read More+
EGYPT: SDX ENERGY HITS OIL IN WEST GHARIB

March 14, 2018

SDX Energy the North Africa focused oil and gas company, announced that an oil discovery has been made at its Rabul 5 Well in the West Gharib Concession...

Read More+