The oil service industry, particularly oil field service companies and drillers, has been plunged into a freezing period for hiring as they brace themselves for potential job cuts. This sudden halt has been triggered by natural gas producers reacting to a significant downturn in oil prices, which has caused a ripple effect throughout the sector. The future labor market within the industry hangs in balance, with the possibility of further reductions looming ominously.
1. The oil service industry, especially oil field service companies and drillers, has stopped hiring due to a potential threat of job cuts.
2. This halt in hiring has been caused by the reaction of natural gas producers to a significant drop in oil prices, creating a ripple effect throughout the sector.
3. The future of the labor market within the industry is uncertain, with potential for further job reductions in view of the falling oil prices.
4. The fluctuating market has reduced the industry's demand for manpower, as natural gas producers have scaled back their operations.
5. There is a high threat of more layoffs in the industry due to the continued decrease in natural gas prices.
In 2020, the oil and gas industry in the US saw its workforce shrink by approximately 107,000 jobs due to plunging oil prices, according to data from BW Research Partnership.
Unfavorable fluctuations in the market have led to a decrease in the industry's demand for manpower. This is caused by natural gas producers cutting back on their operations in response to the dipping prices of the commodity. Consequently, the domino effect has resulted in oil field service companies and drillers significantly slowing down their hiring processes. Furthermore, the industry stands on the precipice of more potential layoffs due to the continued decline of natural gas prices.