Most of those energy jobs are not likely to return anytime soon.
By the end of 2021, U.S. Even if oil prices remain at 45 45 a barrel, 70% of the jobs lost during the epidemic in the oil, gas and chemicals industry will not come by the end of next year, the Deloitte analysis found.
“Such large-scale scattering is challenging the industry’s reputation as a credible employer,” the Deloitte report said.
Part of the trouble is that the fortunes of the infamous boom bust oil and gas industry are even more closely tied to commodity prices than in the past.
U.S. A 1 change in oil prices, up or down, could potentially affect 3,000 upstream and oilfield service jobs, compared to 1,500 jobs in the 1990s, Deloitte said. In other words, the link between jobs and prices is twice as powerful.
This shift reflects the rise of the shale, which made the United States the world’s largest producer of oil and natural gas in 2012. Unlike traditional oil and gas projects, the shell is considered short-lived in nature because it can be lowered or lowered depending on it. Fluctuations affecting price changes, rent and firing decisions.
Sub-zero oil prices
Oil prices were hit particularly hard by the epidemic, which led to a record fall in demand for jet fuel, diesel and gasoline.
The situation was further aggravated by extreme oversplay. In view of the epidemic, the United States is producing significant amounts of crude oil nearby. Saudi Arabia and Russia were then engaged in an epic spirit war that escalated the glut, leaving the oil industry unable to store almost all the extra barrels.
Mass job cuts from Exxon, BP, Shell
Important steps need to be taken at this time to improve cost competitiveness and ensure that the company operates through these unprecedented market conditions, Exxon said in a statement.
Risk of brain drain
Dilit It also said the industry’s general stable refining and chemicals sector also cut 35,000 jobs.
The risk is that this mass job cut causes a brain drain where talented workers come into technology, consulting and other industries that may have bright futures.
The ability to scatter workers in the oil industry depends largely on capacity prices.
If the U.S. With crude hovering at ડ 55 a barrel and staying there until 2021, Deloitte estimates that 76% of the jobs lost during the epidemic could be returned.
After that, in a pessimistic scenario where oil will remain at $ 35 during the coming year, only 3% of that will return to jobs, the report said.
Clash with climate crisis
“Covid-1 has abruptly surpassed peak oil demand forecasts, reduced investor appetite for residual environments and fossil fuels, and reminded organizations to take the transition seriously,” Deloitte said.
Worst of all, it has become difficult for fossil fuel companies to raise money.
The report said the weighted average cost of capital is now 8% to 10% for oil and gas – twice as expensive as renewables, the report said.
Dale IT urged oil and gas companies to accept sustainability as a way of doing business and use the epidemic as a “wake-up call” to beautify their work.
The transition will not be easy, as many oil, gas and chemical companies are “fighting for survival,” the report said.
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