New research by the Petroleum Equipment and Services Association (PESA) found that employment in the oilfield services and equipment (OFS) sector fell by 66,000 in March and April 2020 due to demand destruction caused by the COVID-19 pandemic.
Using Bureau of Labor Statistics 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 779,000 in February to 713,000 in April, a decline of 8.5%. Losses were heaviest in April, totalling 59,000 jobs.
The employment decline due to the pandemic represents estimated annual wages totaling $6.7 billion. Industry analysts anticipate additional job losses in the coming months.
PESA is the trade association representing the OFS sector, which includes companies involved in oilfield equipment manufacturing, drilling, well completions, pressure pumping and more. Job losses in the sector could jeopardize the energy supply chain by draining this sector of the innovative men and women who are developing technologies that increase efficiency, improve environmental performance, and reduce greenhouse gas emissions.
OFS employment was 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 most recent version of the Quarterly Census of Employment and Wages, published by BLS, and jobs data reported by BLS monthly.
For additional information or questions about the report, contact lead researcher and PESA Communications Director Kevin Broom.
The Petroleum Equipment & Services Association (PESA) is the national trade association for the oilfield services and equipment sector, representing more than 700,000 jobs in the technology-driven energy value chain. PESA is a trusted resource, advancing member policy priorities and providing targeted workforce development for the OFS sector.