Oil and gas companies have welcomed the increase in oil and gas prices over the past few months. They have registered an increase in profits in the first quarter of 2016, signalling that the oil and gas industry is staging a comeback from the worst downturn seen in 30 years. Oilfield service companies will be hiring employees this year as demand for labour picks up. Read on to learn more.
Oilfield Service Companies To Expand Their Workforce
With producers demanding supplies, labour and equipment to support oil and gas production, oilfield service companies have realized that they need to expand their workforce. An increasing number of drilling rigs are returning to operation in West Texas’ Permian basin and other shale fields.
Huw Rothwell, Petroplan’s USA regional director said in a recent article:
“The oilfield services companies are still continuing to be very careful about their costs and are still making layoffs in some areas but they’ve needed, particularly in some of the shale plays where they’ve perhaps overcut, they now need to expand and develop their workforce more,” he added.
Halliburton To Hire 2500 More Workers
When compared to May of 2016, the number of operational oil rigs has more than doubled this year. There is an increase in budget allotment for oil and gas exploration and production activities. Service companies are looking to raise prices to increase their profit margins. This may lead to higher oil prices.
“Schlumberger, whose U.S. operations are based in Houston, reported last week that it swung to a profit of $279 million in the first quarter after losing $204 million in the fourth quarter of 2016, and said it has resumed hiring. On Monday, No. 2 Halliburton reported improving profit margins, rising revenues, diminished losses and increased hiring.
Executives said the Houston company would hire another 500 U.S. workers on top of a previously announced increase of 2,000.”
However, this growth in hiring numbers is dependent on oil prices. If oil prices register a steady growth this year, it may result in sustained hiring by oilfield service companies. Those looking for oil and gas jobs are likely to benefit from this development this year.
The hiring figures of oilfield service companies are promising and bring hope to laid off oil and gas workers. What remains to be seen is whether oil and gas prices will stabilize or decrease in the months to come. Increase or stability in oil and gas prices will correspond to increase in hiring numbers. However, the reverse is also true. The hiring outlook is optimistic this year as Halliburton is set to hire 500 more US workers than the earlier estimated 2000 workers.