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Bad time for oil workers in Norway

Staff writer ▼ | November 10, 2014
More than 7,000 jobs have been lost in the oil industry in Norway this year and many more are set to go this year and next.
Norway oil worker
7,000 oil jobs lost   Jobs cuts to continue in the next year
The Norwegian government run Statoil believe this is only the beginning. Already this year Statoil has announced between 1,600 and 1,900 job positions will have to go. All together the number of job cuts between 2013 and 2014 in the oil sector comes up to between 6,575 and 7,060, according to DNB Markets.

Director of Norwegian Industry, Knut E. Sunde, believes the real number of job cuts is probably even bigger because there are a lot of smaller companies within the oil industry that do not inform the sector about their employment cuts.

"I also believe this is only the beginning, since downsizing processes tend to take a long time." Mr. Sunde also pointed at the steep fall of oil prices this summer already resulting in organizational changes that will lead to more job losses.

Employer's union rep at Statoil, Bjorn Asle Teige, said that his and oil companies plan more job cuts in 2015. "A wave of job cuts may soon come from the oil rig companies. Just look at the number of oil rigs stopping their operations off-shore."

Statoil announced on Thursday it is to suspend operations upon two new oil rigs until the end of this year because of overcapacity and a sector that is currently dominated by high costs and low profit. Transocean Spitsbergen and Songa Trym will be suspended until the end of this year, if not longer.