Download our free app for Apple and Android and Kindle devices. "Almost the entire team was laid off," Gara said. And I've heard of a lot of that happening.". Roughly 60% of the bankruptcies of American oil producers from the beginning of the year until the end of May were in Texas alone, according to data from the law firm Haynes and Boone. Like tens of thousands of Albertans who have lost work in oil and gas, Dallas Gara knows what it feels like to be part of a mass layoff. But despite positive outcomes, such as Gara's, the available evidence suggests it's getting harder to find good work. The former employee says they are now going to file for unemployment and wait until companies begin hiring again. "The kind of phrase they used at the time was, 'You're a bit of a unicorn: you have technical and business skills,'" he said. Audience Relations, CBC P.O. In 2016 the company had revenues exceeding $200 Billion (USD). “Major production areas in the state are seeing devastating fallout, and no part of the state is unaffected.”, There’s a difference between opening and growing again, and now we’re just not there yet. After past downturns in the industry, between 70 and 85 per cent of unemployed workers found new jobs within a year of being laid off, according to the study. It will be quite a while to get back up the hole to the pre-Covid level of activity and service pricing,” one insider says in the survey. 2 Works for You has reached out to CD&H, Inc. for comment and confirmation of the layoffs, but has not yet heard back. In a statement, a HollyFrontier representative tells 2 Works for You they have not made any layoffs: "HollyFrontier Tulsa Refining has not eliminated employee positions at this time. Sign up for newsletters emailed to your inbox. Oil and gas producers are trying to reopen after a ‘devastating’ halt, but pessimism about an economic recovery is widespread, Fri 26 Jun 2020 09.00 BST Covid-19 exacerbated a crisis which had been developing from as far back as the end of 2018, when some analysts expected oil prices to rally out to $100 a barrel. The former employee then plans to begin looking to leave the industry and work at a local business in Tulsa. Given the lag in some of this data, however, the study wasn't able to offer a full picture of how people laid off in 2015 or later are faring a full five years later. A significant portion of people who lost work in the industry prior to 2015 soon ended up earning more money than they had before. The former employee says about 70 "non-essential personnel" were being laid off. Gara considers himself lucky, and a recent Statistics Canada study suggests his experience finding good work after a layoff has become increasingly rare among oil-and-gas workers since the 2015 downturn. On the other end of the spectrum, a quarter of those people were earning at least $22,000 less after three years. As someone who shifted to a new industry and then came back to oil and gas, Gara agrees. In the meantime, the heart of America’s oil country considers the prospect of virus-driven economic collapse. I worked there for just about three months,” said one truck driver who did not want to be named. "Generally, it was cyclical: the industry did come back, you started to see hiring again," she said. He joined CBC in 2015 after spending the previous decade working as a reporter and editor at newspapers in Alberta, British Columbia and Manitoba. Oil prices were already depressed by overcapacity at the beginning of 2020, and nowhere did it hurt harder than in Texas, which accounted for 41% of total US crude last year. All rights reserved. Workers in the West Texas oil patch saw the signs when the wells they worked in or supported started closing, rendering them jobless. Labour-market experts highlight some key factors that can help people transition to a new job, but there's no singular blueprint for pulling off this challenging task. Unable to find work in the industry right away, he turned to entrepreneurship and started two ventures. How did America become a pariah nation of super-spreaders? On Tuesday, the former employee was notified they were being laid off, however HollyFrontier did not layoff the employee. Output has fallen for both oil and natural gas and the employment index is significantly down as firms continue to cut headcount. She highlighted petrochemicals, agriculture, logistics and supply-chain management as a few examples. The Greater Houston Partnership tracks about 5,000 oil and gas businesses in the city, giving it more major oil jobs than anywhere else in the world. "The expectations of workers who are looking at returning to the industry is that they might have to upskill or acquire new skills to be able to to meet the requirements of the new jobs.". The oil price has rebounded to hover around $40 a barrel – high enough to cover the cost of existing wells but not yet high enough to dig new ones. “We reached the bottom, and now we’re trying to climb up.
An oil refinery is situated along a highway on January 21, 2016 in Big Spring, Texas.. Lattea is among tens of thousands of workers across Texas – America’s largest oil-producing state – who have lost their jobs since coronavirus shutdowns dried up demand. But in less than a year, he went from having zero jobs to three. It's hard to pin down reasons for the difference between these two groups. To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. But it's hard to do that when you've been laid off.". They started doing layoffs after the first week, so I knew it was coming – but not that fast.”. Oil & Gas Producers Company Stock Ticker: XOM Stock traded at: NYSE Industry Code: 537 About ExxonMobil Corp.: ExxonMobil Corporation is a large multinational oil and gas corporation headquartered in Irving, TX. Oil giants like Exxon Mobil have slashed their 2020 exploration and production budgets by nearly a third, and that was before the total oil price collapse at the start of this week. “We’ve reopened, but there’s a difference between opening and growing again, and now we’re just not there yet.”, The oil and gas industry and related businesses contribute $557bn to the Texan economy, and support one in six jobs in the state, according to analysis from the Perryman Group. The former employee says they worked all day Monday. Pseudonyms will no longer be permitted. Seven months after being laid off — just when the other two new ventures, including his woodworking company Garawood, started to get off the ground — he got an offer to return to the oil industry. Comments are welcome while open. European Union reportedly set to ban US travelers over Covid-19 concerns – as it happened, More young people infected with Covid-19 as cases surge globally, US coronavirus cases hit new one-day high as states backtrack on reopening. "It's really that agility, that versatility, that resilience, where they also view it as an opportunity," she said. But the oil and gas industry cannot afford another shutdown as it smarts from one of its worst years in decades. Several major offshore oil projects have been delayed or suspended in the wake of the pandemic and crashing global oil prices. We are continuing to safely operate our Tulsa refinery. Last modified on Fri 17 Jul 2020 17.15 BST. "Some are definitely still unemployed," he said. At the end of the shift, the former employee says they were going to have the next few weeks off, with potential layoffs. "The difference we're seeing this time around is that we've pretty much had a persistent downturn since late 2014, early 2015.". "To continue operating safely, we have limited onsite staff at all our HollyFrontier refineries to essential personnel only. Those who lost work in related support activities, such as oil field services and construction, fared a bit better at around 75 per cent, but that was still worse than workers in this field had fared after losing jobs throughout the previous two decades. The kids' playground has reopened – my gratitude lasted for two visits, Florida governor under fire over claims state is 'cooking the books' on Covid-19, More than 20m Americans could have contracted Covid-19, experts say, Why are California's Covid-19 cases surging? There were 85 to 90 personnel working at CD&H, the former employee says. TULSA , Okla. — A former employee of CD&H, Inc. says they were laid off Tuesday following speculation about potential layoffs amid falling oil prices. Tuesday's news is the latest blow to the province's oil and gas sector. New coronavirus cases are increasing to record numbers and the state has paused its reopening plans. He was laid off, amid company-wide downsizing. The early indicators, however, look more ominous for those struggling with a layoff since 2015. But, yeah, for myself, I just have to say, I kind of got lucky by knowing somebody who offered me a job. Forsyth worked for a startup focused on heavy oil that moved to Calgary from the United Kingdom in 2008. In 2016, the geophysicist's job with then Calgary-based Encana Corp. was cut, along with those of about 800 other people. For many former oil workers, Howes said, it's more feasible to look to other industries where some of their existing skills can transfer. "That's a pretty dramatic downsize," the former employee said. Bouncing back from a layoff in oil and gas is harder than it used to be, What Canada's economy would look like if Alberta's recession never happened, Eye-roll nation: Why our sympathy for economic pain often stops at provincial borders, CBC's Journalistic Standards and Practices. "So it was a pretty shocking thing.". Comments on this story are moderated according to our Submission Guidelines. Sadly, they have a point. And Forsyth knows a lot of people — colleagues and friends — who have struggled to find good work after a layoff in oil and gas. We reserve the right to close comments at any time. "And that's a mindset. In addition, employees who are able to work from home are doing so.". The oil and gas industry has gone through booms and busts in the past, but this most recent downturn looks different from the rest. The employees who took care of civil engineering projects were among the most laid off, according to the former employee. “In normal times, it comprises about 14% of the economy when you factor in exploration, production, pipelines, refineries, petrochemical operations, corporate headquarters, and the other aspects of the industry,” emailed Dr Ray Perryman, the research firm’s president. Those who are able to shift their skill set to a new type of work often have a few things in common, Howes said. Like Perryman, Jankowski and the energy leaders in the report, Lattea also expects a longer recovery period, so he’s preparing to pivot after 12 years in oil and gas. "It almost comes down to who you know," said Gara. A variety of other indicators show the latest downturn in the oil industry doesn't look like the previous ones, said Carol Howes, who studies the labour market for the PetroLMI division of Energy Safety Canada. In April alone, the industry shed a historic 26,300 jobs in Texas. The Schlumberger layoff news is tucked away inside the company’s earnings report for the second quarter of the year. Box 500 Station A Toronto, ON Canada, M5W 1E6. Recent research from Statistics Canada found a "significant" portion of laid-off oil and gas workers were making more money three to five years after losing their jobs in previous downturns, but emerging data suggests the latest downturn is different. Thousands more oil and gas workers are being laid off as losses mount for an industry that could see drilling activity slashed by 60 percent amid a crushing falloff of demand. In the second quarter of 2020, business activity in the sector hit its lowest level since the Dallas Fed started its survey four years ago. "We were expecting to go home and not work for three weeks," the former employee said. As of 2016 ExxonMobil is the largest of the world's Big Oil companies.