The prolonged oil and gas downturn is causing people to leave the Eagle Ford and other shale regions in search for jobs, according to analysts.
Related: Energy Giants Announce More Layoffs
It's been one year since OPEC challenged the U.S. shale industry by refusing to let up on production, which caused a dramatic drop in crude prices that continues to take a toll.
In the first half of 2015, U.S. shale producers lost more than $30 billion and almost two dozen oil & gas companies have filed for bankruptcy.
Many oil companies have been forced to cut their workforces. Employment in the oil and gas sector has fallen by 5% in since November 2014, in stark contrast to the 5.1% improvement in total U.S. employment. Swift Worldwide Resources reports that more than 200,000 workers in the global oil and gas industry may now have lost their jobs following the collapse in crude prices.
The petroleum industry lost another 25,000 jobs in the last two months increasing the numbers to a staggering 233,000 since late last year. It is estimated that more than 56,000 of those jobs are from Texas alone. And when jobs vanish, people leave.
“We’re seeing declines in population across these towns in south Texas. And until the price returns to a level above $75, $85, $95 a barrel, we won’t see a complete reemployment of everybody who’s left.”
Recent layoffs include:
- Devon Energy and Marathon Oil Corp.: A combined 400 job cuts
- U.S. oil service supplier Superior Energy Services: 4,760 jobs
- Husky Energy: 1,400 jobs
- Maersk Oil: 1,250 jobs
- Chevron: 6,000-7,000 jobs