The oil market turmoil brought on by COVID-19 has led to lower-than-anticipated activity and delayed projects, forcing the industry to deploy cost-cutting measures. A Rystad Energy analysis of the top 50 oilfield service (OFS) firms shows that staffing is set to reach its lowest level in more than 10 years. Its analysis shows that the reduced staff levels in the OFS industry seen in 2016, after the previous downturn, have mostly been maintained since then at just over 760,000 employees, keeping a major cost driver – investment in human capital – at steady low levels. However, the downsizing expected this year is likely to result in the OFS industry experiencing the lowest total headcount in more than a decade, which it estimates will amount to about 610,000 employees.
(Photo: Øyvind Hagen / Equinor)
(Courtesy SPE Offshore Europe)
(Courtesy Kosmos Energy)
(Courtesy Noreco)
