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250,000 jobs lost thanks to low oil prices

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Staff writer ▼ | November 23, 2015
Oil industry jobs
Consequences   There are no hints of improvement in the oil market

The total amount of jobs lost all over the world due to the economic effect of the low crude prices has surpassed the mark of 250,000 and still counting, according to Graves & Co.

The decline in commercial performance of most energy companies is to blame, with industry profitability at its multi-year lowest, and investment cuts hardly supporting any expansion in short-to-medium-term.

In the past two months only, energy companies have laid off some 25,000 personnel, as the amount of active oil derricks in the United States has slumped to its pre-shale boom 2010 level. In late 2014, there were some 1,600 active drilling rigs, now most of them have been idle, with only 600 still operating.

While there hardy is any hint of improvement in the oil market in terms of prices, the situation is likely to further deteriorate. However, further job cuts and more oilrigs being idled might eventually balance out the abundant supply with weak demand, reflecting positively on the oil prices. But this is a more distant perspective.


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