A quarterly report from the Dallas Federal Reserve finds tens of thousands of jobs lost in the U.S. energy sector so far this year. File photo by Gary C. Caskey/UPI |
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DALLAS, April 8 (UPI) -- Energy companies may start adopting tighter policies as the immediate pressure from lower oil prices increases, a report from the Dallas Federal Reserve said.
The Houston Chronicle confirmed reports U.S. supermajor Chevron, which has headquarters in California, was cutting around 8 percent of its local workforce for a Houston headcount reduction of 655. Chevron last year said it would cut about 2 percent of its global workforce as it worked to streamline operations in response to the downturn in the energy sector.
A quarterly report published by the Dallas Federal Reserve said many oil and gas companies are entering "survival mode" as they look to navigate the declining market trajectory.
"Despite forecasts of an eventual improvement in the oil market, U.S. oil and gas firms have continued to face difficult decisions about how to deal with the immediate reality of low energy prices," the report said.
According to the bank's calculations, oil and gas companies working in the United States have cut more than 20,000 from their payrolls during the first quarter of the year.
Many energy companies working in the United States have their headquarters in Texas. The Dallas Federal Reserve reported last month that 12 percent of the firms surveyed said they were hiring, against 22 percent reporting net layoffs.
Danish company Maersk Oil last week said it was closing its offices in Houston in an effort to streamline corporate operations. The company employs about 60 people in Houston.
The Dallas bank said in its quarterly report that pressure is expected to build on the U.S. labor sector tied to oil and natural gas.
"Given current oil and gas prices, it is likely that many companies will continue to face difficulties
in the quarter to come and beyond," it said.
Though Texas is the No. 1 oil producer in the nation, its manufacturing sector is among the largest in the country and the state is a leader in terms of renewable energy developments.
