Oil Industry Threatened By Hollowing Out

Huge numbers of oil industry employees have been laid off in the past year, about 450,000, and while this is to some extent unavoidable, the manner in which the layoffs are being done is potentially damaging. Although many of those laid off are support workers and the less-skilled, some companies are apparently buying out the contracts of their oldest, and thus highest paid, workers.

The late John Lohrenz used to tell a number of very dark jokes about the oil sector after the 1986 oil price crash. (The lightest: “What do you call a wildcatter? Waiter!”) Geologists and engineers often bemoan the cyclical nature of the industry and the many phases of hirings and firings. After the 1996 mini-price spike ($30! Wow!) was followed by the 1998 price crash and a new round of layoffs, many companies swore they would avoid such destructive behavior in the future.

http://www.forbes.com/sites/michaellynch/2016/05/15/oil-industry-threatened-by-hollowing-out/#4d6e4c7e4975