O&G Payroll Cuts May Leave Houston With Knowledge Gap

Drilling

Texas and Oklahoma have borne the brunt of US energy job losses, with estimated combined furloughs surpassing 80,000. The layoffs’ profile may have implications for future industry growth in both oil and natural gas exploration and production, according to CBRE's latest report.

The sector’s job losses have been substantially comprised of highly experienced and talented workers. Experienced, yet expensive, employees have been targeted with both voluntary early retirement and severance packages as firms make an effort to cut costs in the midst of heavy debt levels.

The estimated 180,000 to 200,000 energy sector jobs lost nationally represent large portions of employment in highly technical drilling, completion and logistical employment that will need to be filled once global supply and demand returns to new growth levels.

Hiring freezes, attrition (retirees are not being replaced), and a less competitive energy sector job market on the side of oil and gas producers could stymie industry worker development and innovation (crucial to the business), leading to longer-term workforce and experience shortages in the future.

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