Layoffs Sweep Oil Services Companies

December 2, 2019

Nearly 1,000 employees have lost jobs in the latest round of cuts at oil services companies in Texas and Oklahoma, reflecting the recent downturn in oilfield business.

Houston-based fracking contractor Superior Energy Services has cut 112 employees from a Permian Basin unit based in Ector County.

Superior merged in 2012 with Complete Energy Services, bringing Complete’s Pumpco Pipeline Services into Superior as a subsidiary.

Pumpco specializes in clearing, setup, trenching and welding at pipeline construction sites.

The Texas Workforce Commission said on Monday it received notice about the layoffs from Superior.

Meanwhile, National Oilwell Varco said on Monday it will suspend operations at a Houston-area plant, laying off 85 people in the process.

The company’s Galena Park facility at the Houston Ship Channel, where drilling rigs are produced for onshore and offshore use, will close by January 21st,

The Houston company reported a $244 milllion loss during the third quarter of this year and instituted a voluntary early retirement program as part of larger restructuring plan

In October, National Oilwell Varco made analysis firm WMA LLC‘s list of companies that “won’t go bankrupt” based on the company’s large capitalization and an attractive stock.

And the second-biggest US oilfield service company, Halliburton said on Monday it’s laying off more than 800 people at its operation in the Oklahoma City suburb.of El Reno.

Halliburton Energy Services‘ action affects “multiple parts of the company,” according to El Reno Mayor Matt White.

White told Oklahoma City TV station KOCO that he believes the nearby plant will close soon.

The Houston-based company said it will provide more information on its plans sometime Tuesday, but last month it’s CFO told the New York Business Journal that its plans reflect the “stark reality” of its bottom line, causing a a “total reorganization of the value chain.”

Halliburton already reduced the size of its workforce by 8% in the first quarter of 2019, with further layoffs in Colorado, New Mexico, Wyoming and North Dakota in October based on slowing demand for it’s services during the latest oil downturn.