Low Oil Prices Prompts Apache, Schlumberger to Lay Off Workers
Apache Corp. confirmed to Rigzone on Thursday plans to lay off workers. Apache is the latest company to announce layoffs due to weakening oil prices, which have prompted companies to slash their 2015 budget plans and reduce their workforces.
The staff reduction constitutes less than 5 percent of the Houston-based company’s global workforce, an Apache spokesperson told Rigzone.
“The decision to part with employees is always a very difficult one, and it’s a step we took after pursuing other measures including a slowdown in activity and reduction in budgets given the current price environment,” the spokesperson noted.
On Thursday, oilfield service firm Schlumberger Ltd. said it would lay off approximately 9,000 workers from its global operations due to lower oil prices and the expected cutbacks in exploration and production spending this year.
The company expects to record a $296 million charge associated with the layoffs, the company said in its fourth quarter 2014 earnings report.
“In this uncertain environment, we continue to focus on what we can control,” Schlumberger said.
While global oil demand continues to rise, available supply is significantly higher, depressing oil prices and prompting exploration and production companies to cut spending. The company has already taken a number of steps to restructure and resize the company, which led to a record number of charges in the fourth quarter.
“We are convinced that performance must now be driven by an accelerated change in the way we work through our transformation program,” the company said.
This program includes the delivery of new technology that improves the performance of its customers’ reservoirs; increases in efficiency and reliability that reduce overall finding, development and production costs; and opportunities to grow from more integration – all are significant drivers of our own and our customers’ performance.”
A recent Rigzone survey found that oil and gas managers were planning to scale back their hiring plans this year due to declining oil prices and an uncertain economic environment.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension