If you own a car, you’ve probably noticed the steep decline in fuel prices over the last 18 months. Those low prices may benefit the consumer, but they’re
forcing refiners to tighten their belts.
Specifically, BP announced this week that it will cut 4,000 jobs from its
exploration and production workforce over the next two years.
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“We have to make sure we have a competitive and sustainable business,” David Nicholas, a company spokesman, told The New York Times. “External market conditions are
Crude oil is trading at around $30 per barrel, a significant drop when compared to the $112 per-barrel price it yielded in June 2014.
BP isn’t the only oil company feeling the pressure. Around 250,000 jobs have been cut in the oil industry since prices started dropping. In Dec 2015, Royal Dutch Shell announced plans to cut an additional 2,800 jobs pending a takeover deal of BG
Group. Shell previously cut 7,500 jobs last year.
It is expected that 600 of the BP job cuts will hit the company’s production in the North Sea. Mark Thomas, regional president for BP North Sea, said in a statement that the current climate is forcing the company “to take specific
steps to ensure our business remains competitive and robust.”