EarthStream Says Hiring Companies Gain from Decline in Oil Price

EarthStream noted that lucrative bonuses were offered as part of an aggressive retention strategy in a highly competitive market for staff when oil price was above $100 a barrel.

But with $45 a barrel oil, "project are delayed or cancelled and exploration activities under review which lead to lower bonuses due the lack of aggressive hiring from competitors. The most notable exceptions will be retention bonuses off the back of increased merger and acquisition activity expected due to the large number of distressed companies," EarthStream Asia Pacific Managing Director commented.

"Any businesses who have built oil related assets (oil rigs & floating production, storage and offloading vessels) with no contracted buyers are the most exposed ... also drilling contractors who own their own rigs will be hit hard."

Prices of U.S. West Texas Intermediate (WTI) crude oil dipped below $100 a barrel in late July 2014, while Brent futures broke that level in early September 2014. WTI and Brent oil futures settled Friday at $45.59 a barrel and $48.79 a barrel, respectively.