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Canadian construction labour demand to intensify over short term; will require more than 300,000 new workers over decade

Canadian construction labour demand to intensify over short term; will require more than 300,000 new workers over decade

Canadian construction labour demand to intensify over short term; will require more than 300,000 new workers over decade

Source: Houston Chronicle

Schlumberger grows global headcount despite U.S. layoffs

Houston Chronicle Oilfield service giant Schlumberger grew its global headcount in 2019 despite finishing the year with a $10.1 billion loss and laying off 1,400 workers in the United States. In a Wednesday morning filing with the U.S. Securities and Exchange Commission, Schlumberger reported that the company had 105,000 employees at the end of 2019. The figure marks a 5 percent increase over the 100,000 worldwide employees the company reported at the end of 2018. The new headcount was released less than a week after the company reported closing 2019 with a $10.1 billion loss. Most of that loss came from writing down the value of two past acquisitions but the company laid off 1,400 employees in North America as part of cost-cutting measure to restore profitability to its U.S. shale operations, which took a hit amid $50 per barrel crude oil prices that made horizontal drilling and hydraulic fracturing[Read More…]

Largest CCA Renewable Project Comes Online

Largest CCA Renewable Project Comes Online

Largest CCA Renewable Project Comes Online

Source: Houston Chronicle

Apache closing San Antonio office, cutting nearly 300 jobs

Houston Chronicle Apache Corp. is closing its San Antonio office and eliminating more than 270 jobs  as part of a reorganization process designed to cut costs. The Houston-based oil and gas producer had a difficult 2019 as its stock value plunged more than 50 percent from fall 2018 through a recent December low. But Apache’s stock has taken a big turn up this week with the discovery of oil off the coast of Suriname in South America. Apache said the San Antonio closing and the 272 job cuts will be finalized in early March, according to a letter filed with the Texas Workforce Commission. Apache didn’t immediately respond to a request for comment Thursday morning. The closing of the San Antonio office is part of a plan the company announced late last year to cut an undisclosed number of jobs and further centralize its organization to save an extra $150[Read More…]

January 9, 2020 - 10:00 am Closing Bell Story, Economy, Energy News, Jobs
Source: Reuters

Occidental starting widespread layoffs in Houston and beyond

Chron   Occidental Petroleum is initiating a broad layoff effort this week that will stretch from Houston to Denver as the Permian Basin’s leading oil producer aims to cut costs in the aftermath of its massive $38 billion acquisition of Anadarko Petroleum last year. Oxy has for months offered voluntary employee buyouts and worked to sell assets around the world – from the old Anadarko headquarters in The Woodlands to Anadarko’s entire Africa portfolio – but now the Houston energy firm is moving on to terminating jobs, according to an internal email from Oxy Chief Executive Vicki Hollub. “While these (voluntary) programs have been successful and contributed significantly to our goals, we have determined that additional staff reductions are necessary,” Hollub stated. “A reduction in force program, based on business necessity by job, is being initiated with individual communications and exit dates.” While Oxy would not immediately reveal job reduction[Read More…]

Texas-based flatbed carrier with 260 trucks shuts down, citing insurance costs – This is a sign of tough times for Oil Field Service companies.

Texas-based flatbed carrier with 260 trucks shuts down, citing insurance costs – This is a sign of tough times for Oil Field Service companies.

Freightwaves Flatbed truckload operators have been unprofitable for most of 2019 Oil & Gas 360 Publishers Note: We have been watching the Oil Field Service (OFS) take serious losses due to the investor demand for short-term returns. Investors are calling for less CapEx spending, Free Cash Flow (FCF) and ultimately less drilling. Less drilling is adversely affecting the OFS companies at an alarming rate. More OFS companies will fail in 2020 with a few accidents, insurance rate increases, and overall changes in the market. Texas-based flatbed and oilfield truckload carrier Fleetwood Transportation hauled its last loads on Tuesday after deciding to shutter operations, citing insurance costs. SaferWatch reports that the carrier had 252 trucks, 673 trailers and employed 240 drivers. The fleet, based in Diboll, Texas (100 mile north of Houston), primarily hauled building materials and oilfield equipment. The company had been operating for 63 years, having commenced operations in[Read More…]

Dallas Fed Q4 Energy Survey – Oil and Gas activity, employment slip lower

Dallas Fed Q4 Energy Survey – Oil and Gas activity, employment slip lower

Dallas Fed What’s New This Quarter Special questions this quarter focus on capital spending in 2020, the price of oil needed to cover firms’ capital spending plans next year and the main causes of flaring in the Permian Basin. Activity in the oil and gas sector dipped again in fourth quarter 2019, according to oil and gas executives responding to the Dallas Fed Energy Survey. The business activity index—the survey’s broadest measure of conditions facing Eleventh District energy firms— remained in negative territory but eased from -7.4 in the third quarter to -4.2 in the fourth, suggesting that the pace of contraction has lessened. Activity for oilfield services firms continued to decline, with their business activity index at-22.1. Meanwhile, the business activity index for exploration and production (E&P) firms indicated modest growth, rising from zero to 5.4. Oil and gas production increased for the 13th consecutive quarter, according to E&P[Read More…]

Source: Reuters

Oil patch woes: Amid downturn, Alberta rages at Canada’s Trudeau

Reuters WINNIPEG, Manitoba/OTTAWA – In 35 years of working in Alberta’s oil patch, home to the world’s third-largest crude reserves, Ray Mildenberger endured a volatile industry’s ups and downs without being laid off. That changed in October, when Mildenberger, 60, and five co-workers of an oil service company in Grande Prairie, Alberta, lost their jobs. Mildenberger turned to selling truck parts to pay the mortgage – the first job of his career outside the oil industry. “I took the first thing I could secure,” he said. “There have been a lot more lay-offs here lately. I consider myself lucky.” Alongside the lay-offs, local food banks report strains from rising demand, while across the province oil wells have shut down. But although global oil and crop prices have slumped since the boom years of 2008-2014, the root causes of Alberta’s problems are uniquely Canadian. Canola exports, another mainstay of the western[Read More…]

December 19, 2019 - 1:00 pm Canada, Canada News, Closing Bell Story, Energy News, Jobs
Source: Houston Chronicle

Frac sand supplier U.S. Silica raises prices on its other products

Houston Chronicle Citing rising demand and production costs, Katy frac sand company U.S. Silica is raising the price of its non-frac sand products. In a Tuesday morning statement, U.S. Silicia that it is raising prices for most of its products used to make everything from paints and roofing materials to chemicals, building products and kitty litter. Depending on the product and grade, price increases will be as much as 6 percent. The company is also increasing prices of whole grain sand used to make glass by 5 percent. The price increases, company officials said, are being made to offset rising production costs and increasing capacity to meet growing demand. U.S. Silica’s announcement comes less than two weeks after the company announced cutting its workforce by 10 percent and idling two frac sand mines. Sand is a critical ingredient in the hydraulic fracturing process. And although sand use per well is up,[Read More…]

December 3, 2019 - 3:00 pm Closing Bell Story, Economy, Energy News, Fracing, Jobs, Uncategorized
Source: Houston Chronicle

Steel manufacturing company to close Houston facility amid slowing energy sector

Houston Chronicle TimkenSteel Corp., a manufacturer of steel products, will shutter a Houston plant after nearly 50 years in operation amid a slowdown in the energy sector that has hurt demand for the company’s services in Houston. The closure early next year will result in around 100 layoffs, the company said. TimkenSteel expects to save between $6 million and $8 million annually by closing its plant, which provided precision and finishing services to customers that service the energy market. The plant is located at 14730 Yarberry St. in north Houston. “This change to how we serve the evolving energy market will improve the company’s financial performance,” said William Bryan, executive vice president of manufacturing and supply chain, in a statement. The Houston facility, opened in 1972, provides deep hole boring and finishing services to the oil and gas industry, services that are part of the process for converting steel bars and seamless mechanical tubes[Read More…]

Source: oklahoman.com

Gulfport Energy to cut jobs, halt share buybacks

Reuters NEW YORK – U.S. gas exploration and production company Gulfport Energy Corp (GPOR.O) on Monday confirmed that it would cut jobs, change its board and end its share buybacks, in a bid to reverse a slide in its stock price. Reuters had reported the news earlier in the day, citing sources. Gulfport shares, which fell 7.8% to $2.85 in morning trading, have lost about 67% of their market value in the last 12 months, as weak natural gas prices have eroded its profitability and forced it to slash capital investment. Gulfport, whose production is focused primarily in the Utica Shale in Ohio and SCOOP acreage in Oklahoma, also made a new commitment to use excess cash to pay down debt, which totaled $2.1 billion as of the end of September. The company said it would shed about 13% of its workforce. It also said that Chairman David Houston will[Read More…]

Source: nasdaq.com

U.S. oil producers to slash spending for second straight year in 2020

Reuters U.S. energy producers plan to slash spending for a second straight year in 2020 as companies struggle to extract profits from the U.S. shale boom. While U.S. crude output hit a record 13 million barrels per day (bpd) this month, U.S. oil companies have struggled to deliver consistent profits. That is in part due to their success – higher output has kept oil prices tethered. Investor dissatisfaction has spurred companies to rein in their spending for a second year, with capital expenditures among companies that have released budgets set to fall more than 10% in 2020. Despite lower spending, output continues to grow, swelling global supply, and taking market share from the Organization of the Petroleum Exporting Countries, which has had to cut output sharply to accommodate U.S. shale. OPEC Secretary General Mohammad Barkindo said this week that U.S. shale supply could underperform in 2020. However, the International Energy[Read More…]

Source: carboceramics.com

U.S. frack sand suppliers latest casualties in shale industry slump

Source: Reuters The companies that provide sand for hydraulic fracturing operations are the latest casualties of shale industry cutbacks as low oil prices and demands for higher investor returns stunt drilling activity. Two years ago, U.S. sand companies were racing to open West Texas mines to capitalize on a boom in oil and gas drilling, with more than 20 popping up across the region. That led to an oversupply that has driven down profit, which along with a drilling downturn has led some to close mines and others to consider an exit. Demand grew by 50% in the last two years and at its peak the U.S. sand and logistics market was worth about $12 billion a year, according to Joseph Triepke, president of consultancy Infill Thinking, but supplies grew nearly three times as much. “If you look at Permian frack sand prices, we estimate they are down about 80%[Read More…]

Photo: James Durbin / For The Chronicle

Shale jobs are drying up in the Permian Basin

Source: Houston Chronicle Barry Marks can hear the Permian Basin slowing down. It’s right there on country-music station 96.1 FM in Odessa, Texas, where commercials for shale-patch jobs used to fill the airways. Those kinds of radio ads have fallen by two-thirds, said Marks, the general manager for ICA Broadcasting LLC, which runs five stations in the area. “A lot of those people working in the Permian Basin do not reside here,” Marks said. “So they’re heading home every two weeks. And they may just be staying home.” Signs of a slowdown permeate the Permian Basin, the 55 million acres (22.3 million hectares) in West Texas and New Mexico whose abundant oil and widespread fracking fueled America’s quest for energy independence. Dragged into the downdraft of this year’s 19% drop in drilling are orders for everything from giant earth movers that build well-site roads to chemicals used to kill bacteria[Read More…]

October 4, 2019 - 2:22 pm Closing Bell Story, Economy, Energy News, Jobs
Texas Shale Towns Grapple with Growth as Oil-Bust Fears Fade

Texas Shale Towns Grapple with Growth as Oil-Bust Fears Fade

From Reuters In west Texas, the center of the U.S. oil boom, about 3,800 students at Permian High School are crammed into a campus designed for 2,500, with 20 portable buildings to help with the overflow. School officials had expected enrollment to fall after the last oil price crash, starting in 2014, but it kept rising – one sign of a growing resilience in the region’s oil economy as Exxon Mobil (XOM.N), Chevron (CVX.N) and other majors continue pouring billions of dollars into long-term investments here. For most of the last century, oil money has flowed into this region like a rising tide during booms – but residents here had enough sense to know it would flow right back out again when the next bust hit. That cycle has always made officials, developers and voters wary of investing too much during the good times on everything from school construction to[Read More…]

Oil & Gas 360 - KLX Energy Services Completes Motley Acquisition frac truck

Job Cuts Expected at NOV Amid Ongoing Oil & Gas Industry Slump

From The Houston Chronicle Job cuts are expected at Houston oilfield service company National Oilwell Varco following the implementation of a company restructuring plan created in response to an ongoing industry slump in the U.S. shale basins. The drilling and oil well completion service company has started trimming its workforce by offering voluntary early retirement to eligible employees, the news agency Reuters reported on Wednesday. NOV spokesman Loren Singletary declined to comment but said executives will be discusing a restructuring plan regarding the company’s workforce during a second quarter earnings call schedule for Tuesday. Although exploration and production companies have receovered from a 2014 crude oil price crash, service companies have not fared as well. Citing weaker demand for hydraulic fracturing and drilling services in U.S. shale basins, National Oilwell Varco CEO Clay Williams hinted at restructuring and job cuts during the company’s first quarter earnings in late April. “NOV[Read More…]

Oil Company Layoffs Hitting Canada

Oil Company Layoffs Hitting Canada

Spanish energy giant Repsol cuts 30% of Canadian staff with layoffs in Calgary, Chauvin and Edson From Reuters NEW YORK/CALGARY — Spanish energy company Repsol SA is cutting about 30 per cent of its Canadian workforce as part of global restructuring, the company said in an emailed statement on Tuesday. Repsol joins a string of large international energy companies that have either reduced exposure to Canada or exited the country’s oil sands sector to focus investment elsewhere. Delays in building new export pipelines has slowed Canadian oil and gas development and capped growth in output in the world’s fourth-largest crude producer. Repsol said it had cut staff in its Calgary, Chauvin and Edson offices. The company declined to detail the exact number of cuts from its Canadian workforce, which numbered about 700 at the end of 2018, according to the company website. Employees in the Canadian exploration and production and[Read More…]

June 19, 2019 - 6:18 am Canada News, Closing Bell Story, Jobs, Oil & Gas Jobs
KBR Wins $6 Billion Contract

KBR Wins $6 Billion Contract

KBR Wins Seat on $6B State Department Contract

June 12, 2019 - 5:52 am Closing Bell Story, Jobs, Press Releases
A Look at U.S.A.’s Energy States: Which Are the Best and Worst for Business?

A Look at U.S.A.’s Energy States: Which Are the Best and Worst for Business?

CEOs rank Texas at the top, California at the bottom Chief Executive magazine has published its newest list of the best and worst states for business. Texas ranked Number One—again. California is Number 50—again. In the executive summary of its findings, the magazine quoted a consultant as saying: ” ‘the Chief Executive ranking … reflects what decision-makers are saying. And it’s what they think that counts’. “In that regard, the best states can practically do no wrong, with their inherent advantages enhanced by enlightened administrations continually finding ways to be welcoming to CEOs and their economic booty. “Perennial No. 1 Texas is an example. Governor Greg Abbott risks the ire of indigenous football fans by comparing his state’s performance atop economic-development rankings to that of the New England Patriots of the National Football League, just repeatedly winning everything despite everyone else’s best efforts. “California has it real bad,” the magazine said, “with[Read More…]

May 16, 2019 - 1:09 pm Closing Bell Story, Economy, Jobs
Alberta’s Proposed Change to Overtime Rule could Send Oil Workers to Texas

Alberta’s Proposed Change to Overtime Rule could Send Oil Workers to Texas

One fifth of Albertans work overtime each week; these are the people who will be hurt by Kenney’s OT plan

Final Vote Postponed for Colorado’s Energy Overhaul—Again

Final Vote Postponed for Colorado’s Energy Overhaul—Again

When Senate Bill 19-181, Colorado’s much publicized energy overhaul bill, came up for a third reading in the Colorado Senate Tuesday morning, a movement to lay the bill over for another day was quickly carried, postponing the final discussion and senate vote until April 3. It’s the second day the bill was laid over. This last vote is required for the Colorado Senate to either approve or disapprove the bill with the amendments that were added and approved by the Colorado House last week. The bill is largely expected to pass the Senate Third Reading along party lines, and then move to the governor’s desk for signing. Democrats hold a very small majority in the 35-seat Colorado Senate–19 Democrats, 16 Republicans.   Weld County Fire Chiefs Association Issues Letter Opposing SB-181 From the Greeley Tribune The Weld County Fire Chiefs Association last week joined a growing list of local entities[Read More…]

Texas Has Recovered Half of Oil and Gas Jobs Lost to Downturn

Texas Has Recovered Half of Oil and Gas Jobs Lost to Downturn

From Houston Chronicle Oil and gas companies in Texas added 2,400 exploration and production jobs in October, marking 23 consecutive months of job growth, according to the Texas Oil & Gas Association. The association, citing data from the Texas Workforce Commission, reported on Tuesday that Texas has recovered 49 percent of the jobs it lost between peak employment in December 2014 and the low point in September 2016. The industry faced its most serious downturns in 35 years that emerged from a collapse in oil prices that began in late 2014. One in four energy jobs in the Houston region was lost during the downturn. More than 100,000 exploration and production, or upstream, jobs were lost in the state between 2014 and 2016. Since the low point, employment in the Texas upstream sector has increased by 56,600 jobs. As an added bonus, those jobs are among the highest paying in any[Read More…]

December 12, 2018 - 1:52 pm Closing Bell Story, Energy News, Jobs
Early Sign of an Industrial Slowdown?

Early Sign of an Industrial Slowdown?

Slowdown or speedbump? From FreightWaves Flatbed capacity appears to have increased rapidly over the past month according to the flatbed tender rejection index for the U.S. Since September 17th the FTRI.USA has dropped 48% or 848 bps from 17.74% to 9.26%, indicating flatbed trucks are not as in demand as they have been for the first 3 quarters of the year. The flatbed tender rejection index measures the apparent supply and demand in the flatbed freight market. As capacity increases, the FTRI decreases. The converse is also true, capacity decreases as the FTRI increases. It is no secret that the flatbed market is much more volatile than the other equipment types such as reefer and dryvan, but we can gain other insight from the apparent increase in flatbed capacity. The rapid drop in rejections could have significance due to the type of freight normally associated with this trailer type. Diving[Read More…]

October 22, 2018 - 10:43 am Closing Bell Story, Energy News, Jobs
Will Colorado’s Outperforming Economy Tank if Prop. 112 Succeeds at the Polls?

Will Colorado’s Outperforming Economy Tank if Prop. 112 Succeeds at the Polls?

If voters ban oil and gas drilling by voting in Prop 112, Colorado’s rosy economic metrics could turn sour in 2019-2021 and beyond In what may turn out to be a bit of economic irony, Colorado Secretary of State Wayne Williams released a report Monday that “Colorado’s economy is among the best in the country.” Personal income, wages, GDP, job creation and entity filings all continued to increase throughout the third quarter of 2018. And the secretary’s quarterly business and economic indicators report predicts continued growth into the final quarter of this year and into next. Last month, Colorado reached its lowest number of jobless claims in over 10 years, Williams’ office reported. And The number of new business filings with the Se… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

If Colorado Voters Pass the 2,500-Foot Setback, ‘Governor Polis’ Will Let It Stand

If Colorado Voters Pass the 2,500-Foot Setback, ‘Governor Polis’ Will Let It Stand

Colorado Democratic party platform officially endorses both the 2,500-foot statewide drilling setback and the Martinez ruling for Colorado oil and gas permitting Candidate Polis seeks 100% renewable energy for Colorado, no fossil fuels Stapleton: ‘I would pursue every redress possible for that job-killing measure’ In the 2018 election season’s first gubernatorial debate, hosted by Denver TV station CBS4 on October 5th, Channel 4 asked both candidates for governor—U.S. Congressman Jared Polis (D) and Colorado State Treasurer Walker Stapleton (R)—for their stances on Proposition 112—the proposed mandatory 2,500-foot setback for new oil and gas development in Colorado. The 2018 season’s first gubernatorial debate in Colorado: the two can… Login or click here to subscribe

Proposition 112: What Do Weld County’s Wattenberg Royalty Owners Say?

Proposition 112: What Do Weld County’s Wattenberg Royalty Owners Say?

CAMRO’s Weld County meeting was held a stone’s throw from the Greeley Stampede rodeo grounds Weld County is ground zero for the Wattenberg field, the sweet spot of the DJ Basin, the place whose production made Colorado the nation’s No. 7 oil producer. But it’s also home to much rural agriculture, including farm and ranch families that go back generations. And as the clock ticks closer to election day, Weld County property owners–farmers, ranchers and mineral rights owners–are asking a lot of questions. Photo: Greeley Stampede CAMRO stands for Colorado Alliance of Mineral and Royalty Owners. That group had invited a slate of local experts to its meeting, people who brought to light some very interesting and lesser discussed facts… Login or click here to subscribe

Courtesy of RSP Permian

New Dallas Fed Data: Extraction Employment Growth Hits the Brakes, Drilling Activity Flattens, Permian DUC Count Rises

From the Federal Reserve Bank of Dallas The Federal Reserve Bank of Dallas has published its latest Energy Indicators report with pipeline constraints leading the news. Report follows. Pipeline limitations are driving down local prices for oil and natural gas, causing drilling activity to flatten and the inventory of uncompleted wells to rise in the Permian Basin. Texas mining employment growth also slowed in July. Meanwhile, refineries are processing record volumes of crude, and surging petrochemical processing is putting downward pressure on the price of key chemical products. Employment: extraction sector job growth down 47% from prior month Recent revisions to first-quarter data took a bit of the shine off of stellar energy job growth in Texas. The Texas mining industry added 18,273 jobs from December to June rather than the 22,800 estimated prior to the revision. Looking at the most recent data, mining employment slowed from an explosive second quarter to[Read More…]

Anti- 97 Advertising Has Already Started in Colorado

Anti- 97 Advertising Has Already Started in Colorado

2018 Colorado ballot initiative requiring 2,500-foot drilling setback, or higher, is in the state verification queue: 6 business days till verification deadline  Even though the Colorado Secretary of State hasn’t yet announced the signature verification count for initiative 97, which calls for a mandatory 2,500-foot setback for new oil and gas operations, advertising aimed at convincing voters not to vote for it aired on television and radio while the Denver Broncos were playing against the Washington Redskins in a pre-season game on Aug. 24. On Aug. 27, a spokesperson for the Secretary of State’s office told Oil & Gas 360® that the verification of issue 97 “is not likely to be done this week, but that is not a certainty.” Either way, the Secretary of State’s deadline is just days away. The deadline is Sept. 5–next Wednesday. What 97 would do The proposal would alter state statute to push back[Read More…]

Photo by Mike Goldwater"

Canada’s Proposed Bill C-69 Would Require Energy Project Environmental Assessments to Take Climate Change into Account

Bill gives cabinet and environment minister final power to approve or reject a project regardless of the findings of an environment assessment In February 2018, Catherine McKenna, the federal Minister of Environment and Climate Change, introduced Bill C-69. The bill may replace the Canadian Environmental Assessment Act of 2012 (CEAA 2012) with the Impact Assessment Act. McKenna claimed the new act would restore public trust by increasing public participation in project reviews and create more comprehensive impact assessments by evaluating environmental, health, social and economic factors. Environmental assessments will be required to take climate change into account if the bill passes. Under the new statute, which is now back in the House of Commons for the third and final reading, the federal cabinet and the environment minister retain the power to approve or reject projects – regardless of an assessment’s findings. “Environmental assessment has always been an empty shell devoid[Read More…]

Millennials and ‘Especially Students’ Are Responsible for Oil and Gas Worker Shortage: RRC’s Christian

Millennials and ‘Especially Students’ Are Responsible for Oil and Gas Worker Shortage: RRC’s Christian

Texas regulator says “misunderstanding” is making millennials shun oilfield jobs From the Texas Tribune Texas Railroad Commissioner Wayne Christian told House lawmakers on Wednesday that the biggest threat to a burgeoning oil boom is “the acceptance of the politically-correct-driven environmental anti-oil and gas science.” If you ask Wayne Christian, the biggest threat to the oil and gas industry in Texas is millennials — and a general public that’s been brainwashed into thinking that fossil fuels are bad for the environment. That’s what the former Republican state representative — who now regulates the state’s oil and gas industry as one of three elected members of the Texas Railroad Commission — told his former colleagues during a legislative hearing on Wednesday where state, local and industry officials detailed the many challenges of the latest oil and gas boom in West Texas. One of the tasks the House Energy Resources Committee has been assigned ahead[Read More…]

April 20, 2018 - 9:07 am Closing Bell Story, Energy News, Jobs