Global oil giant Schlumberger is cutting more than 21,000 jobs in the wake of rapidly decreasing demand for oil due to the worldwide COVID-19 pandemic.
The oilfield services company revealed late last month that their revenue for the second quarter of 2020 plunged 35% and that the company lost $3.43 billion in revenue. In the wake of the layoffs, Schlumberger is set to pay more than $1 billion in severance benefits to its former employees.
Since the COVID-19 pandemic began to spread earlier this year, numerous industries have been negatively affected by decreased demand for their products and services. The oil and gas industry, which is such a crucial part of New Mexico’s economy, has been no exception.
According to the Albuquerque Journal, the prices of crude oil have dropped 33% and natural gas has fallen 17% in the last several months. The Huron Daily Tribune reports that new drilling in New Mexico fell 64% in May compared to last year. Many New Mexicans have lost their jobs and the local economy is suffering. This change is jarring after several years of rapid growth due to the burgeoning oil industry in the Permian Basin and other oil-rich areas of the state.
Schlumberger is far from the only energy company to suffer as a result of the novel coronavirus. British oil company BP cut over 10,000 jobs around the world earlier this year. Other oil and gas companies are rapidly losing revenue, many of which were already in trouble due to calls for more sustainable forms of energy in light of the global climate crisis. While many experts expect the oil and gas industry to recover when the pandemic ends, the future of these energy sources remains uncertain.
Have you lost your job due to COVID-19? Or have you been injured in an oilfield accident in New Mexico? Our Albuquerque workers’ compensation and personal injury attorney Michael J. Doyle can hear your case, answer all your questions, and let you know whether you can take legal action. Contact us today to schedule your free consultation.