One of the largest oil service companies in the world announced it will lay off 21,000 workers due to a dramatic loss in revenue fueled by the COVID-19 pandemic, according its to second quarter report published Friday.
Schlumberger Ltd. reported dedicating $1 billion to severance payments. A majority of the funds will be paid out to laid-off workers in the second half of this year.
“This has probably been the most challenging quarter in past decades,” Schlumberger Ltd. CEO Olivier Le Peuch said in the company’s quarterly report. “Schlumberger second-quarter revenue declined 28% sequentially, caused by the unprecedented fall in North America activity, and international activity drop due to downward revisions to customer budgets accentuated by COVID-19 disruptions.”
In North America specifically, the company’s revenue fell by 48% in the second quarter.
As of June 30, Schlumberger had approximately 150 employees in Wyoming, according to Scott LaBelle, a media relations manager for the company.
“Schlumberger maintains operations facilities and offices in Wyoming to support customers throughout the region,” LaBelle told the Star-Tribune.
Recently, the oil field service operator worked with Wold Energy Projects to undertake an integrated drilling project to increase efficiency of drilling in the Powder River Basin, according to the company’s report.
The company did not provide specifics on the number of employees affected by the workforce reduction in Wyoming.
Chesapeake Energy, a pioneer in fracking, sought bankruptcy protection last month.
West Texas Intermediate, the U.S. benchmark for oil, rallied to $40 a barrel Friday, a marked improvement compared to April when West Texas Intermediate front-month futures price for May contracts sold for as low as negative $37.63 a barrel on April 20.
Beginning in March, U.S. oil producers started contending with a global price war and glut in supply, amid a pandemic voraciously eating away at fuel demand. The crash in oil prices, combined with a shortfall in storage, has left many oil and gas firms in Wyoming reeling.
The Associated Press contributed to this report.
Follow the latest on Wyoming’s energy industry at @camillereports
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