107,000 Oil and Gas Jobs Lost So Far During the Pandemic

107,000 Oil and Gas Jobs Lost So Far During the Pandemic

October 9, 2020

The pandemic has now lasted longer than anyone expected and with that comes a record number of job losses across the country. The energy sector is not immune to these layoffs. Laredo Morning Times reports the record number of about 107,000 jobs lost.

The global pandemic, which plunged demand for crude and petroleum products such as gasoline and jet fuel, has led to the fastest layoffs in the oil and gas industry’s history. About 107,000 oil, gas and petrochemical workers — or about 7 percent of the 1.5 million employed in the industry nationally — have been laid off between March and August, according to a new report published this week by global consulting firm Deloitte.

Unfortunately, these jobs will not bounce back quickly, with some reports estimating it won’t be until the end of 2021 before the jobs return, with some jobs not returning at all.

If crude falls to $35 a barrel, 97 percent of jobs may not return by the end of next year. In an optimistic scenario where oil prices jump to pre-pandemic levels of $55 a barrel, a third of the jobs lost may not return next year.

There is also a new concern of an aging workforce, according to a study done by Deloitte the median age of the oil and gas workforce is 44. Now on top of the current challenges, the oil industry faces from the left, recruiting efforts for new workers when oil is needed again will be even tougher. We need to lift up the valuable oil and gas industry and continue to support the hard-working men and women who provide reliable and affordable energy for the country.