Published on : Feb 25, 2015
The Texas oil industry is cutting more jobs in the country as the region grapples with declining crude prices. The service company Archer Ltd., is slacking down on around 1,000 jobs, approximately around 11 percent of its workforces due to the sharp decline in the drilling activity in the North Sea and the United States.
Archer - Bermuda based Oil Company has its own headquarter office in the U.S. situated in Houston. The company has shut down the hydraulic fracturing fleets and a few facilities along with a dozen wire line units, added the CEO of Archer on Monday’s quarterly conference call. He added that the reduction is seen the most in the United States as the present price of oil is uneconomical in several basins. The decline will naturally continue in the first half of 2015 and the future is hard to predict.
Tenaris also plans to lay off around 230 workers and temporarily suspend all its operations at Conroe manufacturing facility. This move is to the falling oil prices that have ultimately resulted in minimum drilling activities. Also, the tube products procured from South Korea are hurting the business.
The company said it plans to stay committed to the US industry with its investment plans in a rod facility in Conroe and new pipe mill set up at Bay City.
In addition, Midland, Advanced Stimulation Technologies also cut 69 jobs in West Texas and Amega will cut 58 jobs in East Texas in April, states Texas Workforce Commission.
Archer is asking firms for measurable concessions on pricing of 15 percent as oil companies have shut down more than 500 rigs, said King. The company lost 16 cents a share in Q4 as compared to the 75 cents a share during the same period. Revenues of the company had increased are predicted to reach $603.7 million with a database of 8,800 employees at the end of last year.