Oil Price Forces American Energy Companies to Shed Jobs

Big Oil is handing out more pink slips as it grapples with a world of cheap oil.

ConocoPhillips (COP), one of America’s largest energy companies, disclosed plans on Tuesday to cut about 1,800 jobs. The biggest chunk of layoffs will take place in North America, including more than 500 just in Houston.

The oil giant cited a “dramatic downturn” rippling through the industry for the cuts.

The tumble in oil prices has been great for American car drivers, but energy workers have been hit hard.

A massive glut in oil has caused prices to plunge from over $100 a barrel last year to as low as $38 last week. Prices remain extremely volatile, making it difficult for energy companies to plan for the future. Companies of all stripes have significantly slashed spending.

Despite a recent rebound in prices, few anticipate a return to triple-digit prices for at least several years.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza