Two U.S. shale oil producers, Pioneer Natural Resources Co. and Parsley Energy Inc., are planning to trim staff in coming days, people familiar with the matter said on Aug. 24, after each posted large second-quarter losses.
The cost cuts are the latest by oil and gas producers as oil demand and prices have plunged due to the COVID-19 pandemic. More than 100,000 jobs in the U.S. industry had been axed this year through mid-June, consultancy Rystad Energy estimates.
RELATED:
Shale Boss Matt Gallagher Says US Has Passed Peak Oil
US Shale Producers Pioneer, Devon Considering Variable Dividend
Parsley is laying off about 10% of its 496 employees, a person familiar with the matter told Reuters. It posted a $356 million second-quarter loss and suspended production guidance. A spokesperson declined to confirm the number of job cuts.
Pioneer, which had cut drilling activity and lowered a production growth target, said its layoffs are part of a restructuring that will conclude next quarter. A spokesperson declined to say how many workers would be affected.
It has about 2,300 employees, and had dismissed about 50 employees in its well services business in June. Pioneer reported a $439 million second-quarter loss earlier this month on lower energy prices and derivative losses.
Recommended Reading
SLB to Buy Service Firm ChampionX in $7.7B All-stock Deal
2024-04-02 - SLB will acquire ChampionX for $7.74 billion in an all-stock deal that puts a 14.6% premium on ChampionX’s April 1 closing price.
ADNOC Drilling Secures $1.7B Contract for Unconventionals Recovery
2024-05-13 - ADNOC Drilling’s new incorporated company, Turnwell Industries, will deliver a total of 144 unconventional wells, as per the contract.
ChampionX to Acquire RMSpumptools, Expanding International Reach
2024-03-25 - ChampionX said it expects the deal to extend its reach in international markets including the Middle East, Latin America and other global offshore developments.
ChampionX Acquires ALP to Grow Digital Solutions Portfolio
2024-02-28 - Artificial Lift Performance Ltd. specializes in software designed to maximize production and extend the life of artificial lift equipment.
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.