The ongoing pandemic that opened up its severity across the world from the start of March 2020 has been impacting the Oil and Gas sector a lot. Adding to it is the economic crisis that’s impacting countries around the world, including the US.
The current generations of students and newly trained employees working for different companies have been facing job losses, despite the heavy government control over the crisis. Most people of the next generation are looking to shift targets before suffering with their plans of debuting to the Oil & gas industry.
With the increase in the number of COVID-19 cases globally throughout 2020, the activities of supplying goods were stranded. But now is the time to reduce the negative impact of businesses in the oil sector that is yet to face hugely with the global economic slowdown.
The global economic uncertainty is driving force to withdraw predictions on recovery of Oil Gas Jobs. Also, the social distancing measures are still restricting full use of labor, and severe limitations on working hours for those still working.
Numbers on Job Losses and fears
The oil-and-gas industry in the US has cut approximately 105,000 positions. This is nearly 20% of its jobs, from March 1 through the end of June last year, according to Accenture. The International Energy Agency said that the global oil demand was down more than 20% in April 2020 when compared to April 2019.
Now, slowly the demand has been climbing. However, IHS predicts that the demand may not reach or go above 2019 levels, until at least 2023. The worst part the research firm revealed is that the demand may be 3.5 million to 4 million barrels a day which is lower than previously forecast. This estimation is plotted towards the end of the decade’s demand.
Many investors and banks have financed the American Oil industry before the pandemic. They now however have a way neither to exit nor raise partners support to improve business. This indirectly is creating fears in Oil Jobs for the current and future prospects.
BP and Royal Dutch Shell PLC, which have their investments in Oil industry, are planning to transfer funds into low-carbon energy sources, although being reputed organizations. According to a survey in 2017, a career in oil and gas was unappealing to 44% of 20- to 35-year-olds.
So, there’s a huge panic in Energy Jobs after going through such an unexpected blow with the coronavirus pandemic. U.S. oil-and-gas extraction jobs fell by nearly 30% from 1982 through the end of the decade.
Also, hiring for roles in this sector might turn out to be more difficult and expensive. Besides, Petroleum engineering was the highest-paid undergraduate field of study in the U.S. According to Georgetown University analysis in 2018, Engineers who graduated in Petroleum stream hold a median salary of $140,000 a year. This applies for employees aged 25-59 years.
Few facts on new hires
There are some harder to believe facts that keep on a positive note, despite the job losses of current employees. BP made its summer internship program virtual and honored full-time offers to approx. 300 recent graduates, even as it cuts 14% of its global workforce (nearly 10,000 jobs). Also, Schlumberger has laid off its existing employees and recruited interns and new full-time job staff.