The oil industry continues to cut costs as crude oil prices remain depressed. The cuts are now spreading to oil producers, having initially affected oilfield service companies starting a year ago. Graves & Co. estimates that the oil industry has shed more than 150,000 jobs. Providers of oilfield services and drilling contractors have accounted for 100,000 of the job losses, while exploration and production firms have so far accounted for only around 10% of job cuts. This month, Chevron announced the elimination of 1,500 positions, or 2.3% of employees. Companies are also putting projects on hold. Wood Mackenzie estimates that $200 billion in investments have been shut down or delayed since mid-2014. Reversing plans announced three months ago, BP expects to reduce its 2015 spending to under $20 billion, while Statoil estimates $500 million in reductions.

Source: Bloomberg