About 35% of the total workforce of the world’s top 50 oil field services companies was laid off during 2014-16, research from oil and gas consulting service Rystad Energy shows. That amounts to around 300,000 employees.
The firm notes the North American shale industry in particular took a hard hit with the lower activity levels. Two of the largest land drillers, Nabors Industries Ltd. and Helmerich & Payne Inc., have announced several staff cuts resulting in an overall reduction of more than 50%. The Big Four, all exposed to the US land market, were forced to lay off between 30-40% of their workforce. Companies exposed to more of the international market have cut more modestly in the range of 20-30%.
“However, the negative trend is about to turn and over the last few months we have seen more job-postings in North America from companies such as Weatherford, Nabors, and Precision Drilling, among others,” said Audun Martinsen, Rystad vice-president of oil field service research. “Last week, Halliburton announced its plan to add 2,000 jobs to the pressure pumping and cementing business.”