Financial News

Thousands More Oil Jobs To Go As OPEC Summit Fails

Thousands more jobs in the oil and gas sector are expected to disappear as the result of the failed OPEC summit aimed at freezing production levels.

The slump in the price of oil has seen 84,000 oil and gas jobs go across Texas in 16 months, according to production companies in the US state.

Figures for the British oil and gas industry suggest 150 workers are made redundant every day and that 45,000 North Sea jobs will be lost in 2016.

These scenarios are repeated on a larger scale across the OPEC countries in Latin America, Africa, the Middle East and Asia Pacific.

The price of oil has plunged from more than $100 a barrel little over a year ago to around $40.

Ministers from OPEC met in Doha, Qatar, with a grand plan to freeze production for at least six months in a bid to stabilise prices and to reduce massive stockpiles.

Snub for OPEC

Reduced demand from China as the country’s growing economy slows down and a general malaise of the global economy has meant oil producers are pumping around 1.3 million barrels a day more than the market needs.

A squabble between leading oil producers at the OPEC summit led to talks ending without an agreement.

Saudi Arabia and non-OPEC member Russia had agreed to cap production at January’s levels – providing Iran agreed to do so as well.

Iran snubbed the deal because the country is struggling to gain market share and foreign currency revenues after years of sanctions recently ended.

Saudi Arabia and Iran are also engaged in a power struggle in the Middle East, with each vying for influence in military hotspots such as Yemen and Syria.

Saudi Arabia is leading the coalition air strikes against opposition forces in both war zones, while Iran is supporting the other side against them.

Wind farms need workers

Despite the problems in the sector, some oil and gas companies are still hiring to fill posts in maintenance and pipeline inspections.

The American Wind Energy Association also reckons around 90,000 jobs involving design, construction and maintenance of wind farms are open in the USA alone.

CEO Tom Kiernan hopes the sector will create 380,000 jobs by 2030.

“These vacancies are up for grabs but oil and gas workers who have lost their jobs will find that the compensation payments are not as high as those that they are used to,” said Kiernan.

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