Oil sector loses 9,300 jobs in February

About 9,300 oil and gas workers lost their jobs in February, as low crude prices spurred energy companies to lay down rigs and lay off employees.

The 1 percent decline in oil and gas payrolls adds to the 1,900 jobs that were already shed in January and may just be the beginning of things to come.

Producers have been able to blunt some of the pain from the plummet in crude prices — down from a high of $107.26 last June — by stashing oil in storage tanks around the country.

But available storage space is filling up, and analysts warn that once oil producers run out of room, domestic crude prices could take another hit.

Energy executives warn that low oil prices are here to stay and any rebound could be years away. Exxon Mobil CEO Rex Tillerson predicted earlier this week that prices could remain low for two years.

Before the recent declines, the oil sector had been outperforming the job market — ensuring its lobbyists in the nation’s capital had a potent talking point as they argued for favorable tax treatment and other policies.

Overall, the U.S. economy added 295,000 jobs in February, according to the Bureau of Labor Statistics’ monthly employment report.

With oil companies cutting their capital budgets, contractors are contracting too.

For instance, on Tuesday, Nabors Industries announced it had cut 12 percent of its 29,000-employee workforce.

Sinking Oil Prices Send Job Cuts Soaring
http://www.forbes.com/sites/samanthasharf/2015/03/05/sinking-oil-prices-send-job-cuts-soaring/
3/05/2015

Employers cut more jobs in February 2015 than they did in February 2014. This is according to a report out Thursday from outplacement firm Challenger, Gray & Christmas. The monthly reading shows lower oil prices pushing February cuts to 50,579 from 45,835 a year earlier.

This is the second month in a row that 2015’s numbers have come in higher than 2014’s, in January employers cut 53,041 jobs up from 45,107. The energy sector accounted for 36,532 of the 103,620 cuts so far this year. In February oil prices were cited at the cause in 36% of cuts.

“Oil exploration and extraction companies, as well as the companies that supply them, are definitely feeling the impact of the lowest oil prices since 2009,” said the firm’s CEO John Challenger in statement. “These companies, while reluctant to completely shutter operations, are being forced to trim payrolls to contain costs.”

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