U.S. has lost 70,000 oil jobs in the past year

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Sadly, it has been a poor year for oil industry. Oil prices not only stayed at very low level but also were systematically dropping down to 35$ a barrel. Cheap crude affects global economy and makes current oil market environment unsunstainable. Global crude supplies are highly outweighed and crude storages may not start to deciline until 2017.

The Dallas Fed estimates in a new report that U.S. has lost about 70,000 oil and gas jobs since October 2014 what equals 14.5 percent drop in the 14 months after the domestic shale drilling boom that drew thousands to Houston’s oil hub began a steep decline.

Iran wants to pump an additional 500,000 barrels a day when western sanctions on its oil exports happen to be eased next year. Goldman Sachs believes that OPEC, which includes Iran, will boost its daily production in 2016 by 640,000 barrels. Additional barrels on market certainly will not enhance chances for crude to be more expensive.

These factors make high extraction unprofitable for oil companies and consequently less people are needed to control this process. Workers from huge companies such as; Schlumberger, Halliburton, Baker Hughes and British Petroleum were made redundant.

Apart from consumers with high transportation and manufacturing costs cheap crude worries entire world. Current market situation makes future uncertain especially for students and recent graduates who are seeking for opportunities in oil companies. However, we do know that such low prices are not beneficial for many and will eventually start to increase.

http://fuelfix.com/blog/2015/12/24/dallas-fed-says-u-s-oil-bankruptcies-at-great-recession-era-levels/

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