Texas Job Growth Slows

6,900 Oil Jobs Lost this Year
Texas Job Growth Slows

Texas Job Growth Slows

As crude prices continue to bounce around, the effects of sustained low prices are showing up in slowed job growth throughout Texas.

Related: Low Oil Prices and the Texas Economy

The Texas Workforce Commission reported that the state added 7,100 jobs in February, which was the smallest monthly job gain since October 2011. The biggest hit came in the oil industry where 6,900 jobs were lost in January and February.

Low crude prices means reduced activity and the decreased demand for oilfield equipment and services means layoffs for many companies that service producers. These companies are reporting significant revenue losses as drilling activity and oil prices have steadily declined. Recent layoffs in the service sector include:

  • Offshore drilling contractor Seadrill will cut 159 jobs
  • Tenaris will cut 133 workers from its northwest Houston plant
  • AFGlobal Corp. will cut 89 workers from the company’s North Houston facility
  • DHW Well Service Inc. will cut 55 workers from a fabrication shop in Victoria
Gov. Greg Abbott issued a statement saying Texas “continues to be a model for economic growth and prosperity across the nation. However, there is more we can and must do. I am working with the legislature to ensure we pass legislation that lowers the tax burden on businesses, guarantees long-term funding for transportation, and provides economic development opportunities – including in higher education – to further diversify our economy. “ 

Despite the slowed job growth, the Texas consumer confidence index increased 4.7 percent over this time last year and the state’s unemployment rate dropped to 4.3 percent, down from 4.4 percent in January 2015. 

Read more at twc.state.tx

Baker Hughes Closes Another Texas Location

Layoffs Continue as Energy Giant Prepares for Merger
Baker Hughes Cuts Jobs

Baker Hughes Cuts Jobs

Baker Hughes pink slips are starting to add up. The latest casualties are the 54 employees who will be out of work when Baker Hughes permanently closes its office in Bryan, TX.

Since the first of the year, Baker Hughes has closed other Texas locations including operations in Mineral Wells (110 employees), Kilgore (58) and Alice (51).

Related: Energy Giants Announce Layoffs 

Baker Hughes representatives continue to say that job cuts are part of a company wide workforce reduction of an estimated 7000 workers in order to minimize costs during this downturn in oil prices. Also at play is Baker Hughes’ upcoming merger with Halliburton, where it is likely that both companies will combine operations and eliminate redundancies.

Related: Halliburton to Merge With Baker Hughes

The Houston Chronicle reported in December that the combined company expects to make $2 billion in cuts, with most of the job loses coming from operations.

Baker Hughes CEO Martin Craighead told the Houston Chronicle that, “We don’t want to be insensitive to the uncertainty and acknowledge that the fact that anytime you have institutions of this size coming together there will be some adjustments, but I think it would be premature to speculate” 


Talisman Energy Cuts Jobs

Up to 200 People Expected to Lose Jobs
Talisman Cuts Jobs

Talisman Cuts Jobs

Talisman Energy Inc., with extensive holdings in the Eagle Ford shale play, announced this week that it is cutting its workforce due to the continuing drop in crude prices.

Related: Energy Giants Announce Layoffs

Layoffs will affect between 150-200 employees and contractors from Talisman’s head office in Calgary. These cuts coincide with the company’s plans to trim its 2015 capital program to $2.1 billion, a 30 percent drop from 2014. So far, the company has not announced any job cuts in its Texas operations.

Talisman spokesperson, Brent Anderson, commented to Bloomberg that “Our decision to reduce our workforce numbers is based on the decline in global commodity prices, which has meant a reduced capital spending program for us this year. The impacts of the reductions are hitting all functions supporting all parts of the organization.”

Oil prices have fluctuated since the first of the year. After a short move upwards, the price has hovered around the mid forties for the past two weeks.

In February, Talisman Energy shareholders finalized the sale of the company to Repsol and expected to close in the second quarter of 2015. The company announced that job cuts are unrelated to this acquisition.

Read more: Repsol to Aquire Talisman Energy

Talisman’s interests in the Eagle Ford shale play are located in southeast Texas, where the Company now holds approximately 59,000 net acres of land in the following counties: