More Than 6,000 American Energy Worker Jobs Lost in a Single Day

April 16, 2020

The U.S. oil and gas industry sheds spending costs as the market continues to struggle amid the crash in crude oil prices. Unfortunately, for American energy workers than means job cuts. Demand has continued to collapse due to coronavirus-related shutdown orders and the recent global price war between Russia and Saudi Arabia sent stockpiles soaring.

According to the Houston Chronicle:

Oil and gas companies announced plans to cut more than 6,400 jobs on a grim day for the industry that saw the price of crude oil settle below $20 for the first time since 2001 and the amount of petroleum in U.S. storage rise by nearly 20 million barrels.

Oil storage tanks in the United States are almost 65 percent full because of the falling demand for oil.

After an increase of 19.2 million barrels last week, there are 503.6 million barrels of crude in commercial tanks across the U.S., 6 percent above the seasonal average, the Energy Information Administration said Wednesday. The U.S. has an estimated capacity of 768.8 million barrels at refineries and commercial tank farms.

U.S. demand is about 6.4 million barrels per day, 31.6 percent less than at the same time last year, the EIA said. Jet fuel demand is down by 39.7 percent and diesel demand is down by 8 percent, the agency said.

If we don’t give support to the struggling industry during this crisis, more jobs will be lost. The global economy will recover, as will the demand for oil and gas. This is why it is so important for our government to take steps to defend the vital industry that provides millions of American jobs, national economic growth, and America’s energy independence.