Low oil prices are taking a toll on the “man camps” that house oilfield workers in the U.S. and Canada, with one lodging company, Houston-based Civeo Corp., cutting its work force 45% in the U.S. and 30% in Canada.
In recent years, the camps “have cropped up in North Dakota’s Bakken Shale and in West and South Texas to give drill site workers a place to live in remote locales,” FuelFix reports, with Civeo employing more than 4,000 in the U.S., Canada, and Australia. Now, “the layoffs follow similar announcements from Houston’s Hercules Offshore and Halliburton, a driller and an oil field service giant that expect to see profits fall as oil companies reduce equipment spending.”
Analysts expect 500 to 800 drilling rigs to go idle this year, Eaton writes. Each of them accounts for 100 to 150 direct and indirect jobs.