The merger will effectively end the 86-year run of UK independent oil producer Premier Oil and give rise to one of the largest companies operating in the North Sea region. The pandemic accelerated that shift to tighter capital discipline ten-fold. Schlumberger As many as 55,000 of the company’s 100,000-strong workforce (as of last year) were working remotely during the pandemic, Le Peuch said.
A Schlumberger building in Houston, Texas. Cutting-edge solutions for reservoir characterization, drilling, production & processing. The firm still generated $465 million in free cash flow. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. captured in northwest England and North Wales. Schlumberger posted a $7.4 billion loss in the first quarter and is bracing for a painful second quarter. After years of splurging on new equipment to drill ever greater numbers of oil wells across states like Texas, New Mexico and North Dakota, banks and other lenders began enforcing stricter capital discipline last year. The reorganization and other moves are expected to save the company $1.5 billion per year. Employment in the oil and gas sector has fallen sharply as a result, with oil services companies bearing the brunt of it. Schlumberger wasn’t the first oil services company to report bruising second-quarter results. "Schlumberger will be a new company for a new era that will reward the best operational performers, the most disciplined allocators of capital, and the most responsive with digital technology, and we intend to be the leader in all of these. Chevron is initiating its layoffs of up to 15% of its global workforce of 45,000 first announced in late May by asking employees to reapply for positions. Its North America operations fared the worst, with revenue down nearly 60% to $1.2 billion compared with a year ago. "We will incur cash costs of approximately $1.2 to $1.4 billion as a result of both restructuring and reducing our variable headcount," Le Peuch said. Revenue at the Houston-based oil services firm during the second quarter fell 35% to $5.4 billion compared with the same period a year ago. Oilfield service giant Schlumberger grew its global headcount in 2019 despite finishing the year with a $10.1 billion loss and laying off 1,400 workers in the United States. All Rights Reserved, This is a BETA experience. He previously worked at the San Antonio Business Journal, KGBT-TV in the Rio Grande Valley and Al Día in Dallas. The company will pay more than $1 billion in severance benefits. is cutting 21,000 jobs, or around one-fifth of its total workforce, as part of structural changes in response to one of its worst quarters in decades. Short-term pain, Le Peuch said, is necessary for the company's survival during the historic industry downturn.
Schlumberger’s announcement also comes as media outlets said the company would reshuffle top executives along with the restructuring, citing a company memo. The Schlumberger layoffs shouldn’t come as any surprise. The five basins will address customers’ specific needs where they operate in the following: Americas land, offshore Atlantic, Middle East and North Africa, Asia, and Russia and Central Asia. On Monday Halliburton Compared with internationally, spending cutbacks in North America have been greatest. ... Furloughs, as opposed to layoffs, occur when employees are required to take an unpaid leave of absence. The company reported laying off 2,000 people so far this year, but with 60 percent of corporate jobs now being done remotely, more job cuts may be around the corner for some field staff. Many of these activities are concentrated in the side of the oil industry focused on new oil production — the same segment of the industry that oil producers have cut back on first. Schlumberger to perform major overhaul of business units, Get daily energy news headlines in your inbox, USMCA, overshadowed by pandemic, seen speeding post-COVID recovery, Oil-field services speed adoption of clean energy tech, Life After COVID: Pandemic to permanently change oil & gas tech, skills, Texas surpassed 1 million votes on first day of early voting, Fertitta Family creates country’s first King Ranch-branded restaurant, 'Never seen anything like it': Social media erupts on landmark first day of early voting in Texas, Alone at home, a Houston stroke patient's quick thinking saved her brain, Harris County breaks record for the first day of early voting with hours to go before polls close, What a deal for Concho could mean for ConocoPhillips, Houston's oil and gas industry 'is not out of the woods yet', Oil and gas industry must address digital skill gaps to thrive, How Houston overtook a tiny Oklahoma town as the center of oil, Chevron Phillips Chemical marks ‘huge step’ in plastic recycling, As Trump deregulated, society pushed back. Eni plans to reuse depleted hydrocarbon reservoirs in Liverpool Bay to permanently store CO2. The company’s most recent quarter saw it bring in a revenue of $5.36 billion. Those structural changes and related layoffs are needed to survive the industry downturn but expected to cost the company up to $1.4 billion, Schlumberger CEO Olivier Le Peuch said during a Tuesday morning virtual presentation for the J.P. Morgan 2020 Energy, Power & Renewables Conference. Schlumberger To Restructure Business Units. At international operations, revenue fell 24% to $4.1 billion.
Formerly I covered oil markets in Africa, the Mediterranean and the Mideast Gulf for commodities publication Argus Media in London. Read the latest oil and gas news from HoustonChronicle.com. Looking ahead to the third quarter, chief executive Olivier Le Peuch said he expects revenue to remain roughly flat, with a potential modest increase in the part of its North America business focused on “completing” oil wells (preparing them for oil extraction) that have been drilled by injecting water, sand and chemicals, a process known as fracking. Khaled Al Mogharbel, executive VP of operations will become executive VP of geographies, in charge of regional operations group and its sales and commercial teams. HAL Schlumberger is cutting more than 21,000 jobs as the global coronavirus pandemic quashes demand for energy and oil prices are routed. Service Sector: Schlumberger to perform major overhaul of business units. I write about energy and commodities, from renewable energy to coal. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter. Oil services firms perform many of the industry’s necessary but thankless tasks: maintenance of oil wells, preparing (“completing”) freshly drilled wells for oil production, and drilling for oil. The basins will also oversee 30 GeoUnits to provide greater local autonomy and enable fit-for-basin technology innovation. That included combining 17 product lines into four divisions, streamlining its management structure, and shedding around one-fifth of its workforce. Formerly I covered oil markets in Africa, the Mediterranean and the Mideast Gulf for commodities publication. said its revenue had fallen 21% to $4.74 billion. It cut 21,000 people. Earlier this month the Petroleum Equipment and Services Association (PESA), an oil services trade group, found that employment in the oil-field services and equipment sector fell by more than 8,600 jobs in June alone, bringing total job losses due to pandemic-related demand destruction to nearly 94,000.
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