Oil prices have been slipping over the past half year from a surplus in product across the world. Prices at their peak were lingering around $100 a barrel, which saw the industry grow in leaps and bounds with new jobs being offered often. Since its peak price in 2012, price per barrel has fallen to half its value, prompting oil and other commodities companies to implement cost cutting measures, one of which being layoffs.
Tensions are high for those employed by oil companies as the industry has seen over 100,000 jobs lost worldwide. Confidence has taken a further hit as the oversupply of engineers are being met with no job openings. Citigroup inc. has predicted that despite the price per barrel making its way over $50 a few weeks ago, it may drop to the $20 range around April. The surplus of crude has continued to rise as producers are not cutting output any time soon.
Big oil companies such as BP Group and Woodside Petroleum have announced that they have measures in place to tighten costs further if the market does not rebound to their liking. these two firms have been operating out of Australia, who with the current industry climate have taken a big economic hit. $70 billion has been poured into AUstralia to increase its natural gas export, an expense that is now seeing its beneficiary projects delayed, or cancelled. In Brazil, and Mexico the economic climate has been taking a hit as well. With no quick recovery predicted, many international schools are closing along with a reduction to government royalties.
Petroleos Mexicanos has a workforce of 153,00 employees has vowed to take care of their own during these tough times. Reductions to purchases and contracts have been able to save the company between $2 and $3 billion, but 8,000 workers were still laid off.
North Sea job oil production has also felt the same woes as the rest of the world. The region offers jobs to those who live in Aberdeen, Scotland, Stavanger, and Norway. So far, 11,500 jobs have been lost with another 30,000 looming below the axe with the reduction of value to the region being cut by $3.6 billion.