Oil Field Services Sector (OFS) Adds Jobs For Third Consecutive Month

Employment in America’s oilfield services and equipment (OFS) sector rose slightly for a third month, adding an estimated 2665 jobs in November, according to preliminary data from the Bureau of Labor Statistics (BLS) and analysis by the Petroleum Equipment & Services Association (PESA).

BLS revisions showed the sector gained 1498 jobs in September and added 5091 jobs in October. After losing 100,934 jobs due to the pandemic, OFS sector employment has increased by approximately 9254 jobs over the past three months, according to preliminary BLS data.

Estimated job losses due to pandemic-related demand destruction now total 91,680. OFS employment is down 81,610 jobs since November 2019.

Using BLS data, PESA, in consultation with researchers from the Hobby School of Public Affairs at the University of Houston, estimates OFS sector jobs in the U.S. dropped from 757,516 in February to 665,836 in November, a decline of 12.1%. Losses were heaviest in April, totaling 58,738 jobs, the largest one-month total since at least 2013.

OFS employment year-over-year fell from 747,446 jobs in November 2019 to 665,836 in 2020, a reduction of 10.9%. The jobs lost represent annual wages of approximately $10.3 billion.

Job losses were heaviest among companies providing support services for oil and gas extraction. This portion of the OFS sector has cut 77,810 jobs during the pandemic, or 85% of the sector’s total job losses.

OFS sector employment rose 0.4% in November as companies sought to balance increasing oil and gas production with the uncertainty resulting from the surge in COVID-19 cases, which are causing renewed lockdowns and reduced demand.

OFS employment is estimated by analyzing data published by the U.S. Bureau of Labor Statistics and covers the economic activities of OFS companies, which include oil and gas extraction, construction, and manufacturing. Total employment is estimated using the Quarterly Census of Employment and Wages, published by BLS, and jobs data reported by BLS monthly.

SOURCE: The Weekly Propane Newsletter, December 10, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.