While U.S. crude oil production is breaking records, the number of jobs in upstream and oilfield services is stagnant and has started to decline, indicating that U.S. oil and gas producers are now “doing more with less” as efficiency and automation in the shale sector are increasing.
The oil and gas sector still supports hundreds of thousands of upstream and service jobs, as well as millions of associated jobs in the energy value chain and hospitality sector.
However, the post-pandemic recovery in oil and gas hiring — after the 2020 crisis and thousands of layoffs — may be over.
The decline in hiring isn’t because production is falling. In fact, it’s continuing to rise, albeit at a slower pace. It’s because shale companies are now even more focused on efficiencies and cost controls so they can deliver higher returns to shareholders amid only slight increases in production.
Efficiency and technological advances in fracking services, as well as continued consolidation in the sector, have reduced employment numbers this year.
The U.S. Energy Information Administration (EIA) expects U.S. crude oil production to average 13.2 million barrels per day (bpd) this year, up from last year’s average of 12.9 million bpd. By 2025, U.S. crude oil production is expected to accelerate its growth and reach an average of 13.7 million bpd, according to the EIA’s latest Short-Term Energy Outlook (STEO) released this week.
Additionally, record Permian production and increased efficiency across the shale sector have prompted many U.S. oil producers to raise their production projections, which could boost U.S. output above expectations for limited gains this year.
2024-08-11 22:08:02