The oil and gas industry has been a volatile investment in past years and therefore jobs and recruitment efforts have dropped or at very least, slowed. However, news outlets in 2016 are starting to change their tune. Here’s a roundup of some of the top stories that oil recruiters can present to their company leadership teams to prove that it is time to start bringing on more talent.
3 Oil Service Giants to Buy as Rig Count Slowly Improves
On August 10th 24/7 Wall Street noted that United States oil companies are feeling optimistic that per barrel pricing will rebound to $50 per barrel. Here are some key stock prices recruiters should follow:
- “The [Baker Hughes Inc.] stock closed most recently at $47.85.”
- “The shares [of Halliburton Co. stock] closed Tuesday at $44.05.”
- “The [Schlumberger Limited] stock ended the day on Tuesday at $81.83.”
The article suggests following and/or investing in these three leading stocks as they will likely perform even better than others when overall oil market conditions improve. Following the per barrel pricing may also help recruiters forecast their talent acquisition needs. Remember, recruiting should happen prior to a crisis, so if the per barrel price continues to rise, it may be time to put a proactive recruitment plan in place.
Rig Count: Modest signs that E&P companies are making $41 per barrel work
On August 7th, The Houston Business Journal reported that improvements are happening within the oil landscape. In addition to the news about rising rig counts for Eagle Ford and Permian Basin of West Texas, here are some important items from the article:
- “Houston companies such as Sanchez Energy (NYSE: SN), EOG Resources Inc. (NYSE: EOG) and Marathon Oil Corp.(NYSE: MRO) are drilling new wells in the Austin Chalk geological formation.”
- “Railroad Commission of Texas show that oil companies are hitting a variety of targets in South Texas.”
- “Houston-based Cabot Oil & Gas (NYSE: COG) are "refracking" or "recompleting" pre-existing wells that they had drilled in the Eagle Ford geological formation.”
Baker Hughes Announces July 2016 Rig Counts
On August 5th, Baker Hughes announced that, “the international rig count for July 2016 was 938, up 11 from the 927 counted in June 2016.” In fact, the world’s rig count is up as well! According to the announcement, there are currently 1,481 rigs worldwide, which is up 74 rigs from this past June. Recruiters should keep a close watch on Baker Hughes to keep tabs on the rig counts so that they can plan their recruitment efforts accordingly.
Slight rebound for new drilling as crude oil prices get comfortable in the mid-$40s
On July 24th, The Houston Business Journal noted that oil pricing was starting to settle into a pattern of $40 per gallon, which is great news! Here are some of the important facts from the story:
- “The Eagle Ford Shale region gained two new drilling rigs” (they finished the week at a total of 35).
- “The Permian Basin of West Texas gained eight rigs” (they finished the week at 168).
- Texas gained 15 new drilling rigs as a state.
- “According to a study from the University of Houston, each drilling rig represents 224 jobs on and off the drilling pad.”
On the whole, this summer harkens a resurgence in the vitality of the oil industry. We suggest using the per barrel cost, rig counts and stock prices as indicators to help you make an educated decision about when to start recruiting oil talent in earnest.
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