Plummeting oil prices made one large oil industry giant cut jobs in last few weeks.Md Noman Siddique (Author) Published Date : Feb 08, 2015 11:51 ET
Weatherford International--- one of the largest company in the oil industry said that they are cutting 5,000 jobs because of plummeting oil prices. The company which runs drilling and other oil operations said that the fields where the job cuts are taking place includes oil field positions and support roles. They have also confirmed that all the job cuts are taking place in the Western Hemisphere. In a statement on Wednesday the company said, the job cuts will save them $350 million. The Geneva based Weatherford is another oil giant who has to cut back costs in recent times due to plummeting oil prices. In recent times oil prices plummeted 50 percent more than last year. According to the market data on Wednesday, crude oil prices are $49 per barrel, which was $47 per barrel last week.
In recent months other oil industry giants like Halliburton and Schlumberger had cut 1,000 and 9,000 jobs respectively. Recently BP had also slashed spending by $1 billion followed by Royal Dutch Shell who has slashed their spending by $15 billion over the three years. After the warnings from the energy experts that the oil prices haven t reached its bottom price yet, Conoco Philips has also cut back their spending. It was reported that, about 40% job cuts in January was blamed on plummeting oil prices. It was also said that most of these job cuts are within the oil industry. In a statement Challenger, Gray and Christmas CEO John Challenger said, The economies throughout the northern United States that have been thriving as a result of the oil boom could experience a steep decline in employment across all sectors, including retail, construction, food service and entertainment .
Energy experts are also saying that the production of oil falls overtime, they explained that, the reservoir pressure drops as oil is extracted. Industry executives are saying that, Fields on average experience natural depletion rates are around 15 percent per year .
Plummeting oil prices made one large oil industry giant cut jobs in last few weeks.