A growing number of companies are putting hunters and energy companies on notice: the industry will have to work harder to remain competitive, or risk losing jobs and customers.
Hunters and energy firms are being forced to take more risks in the hunt and oil and gas industry, which they are investing heavily in to keep up with demand for their products.
The companies are losing jobs because of a growing number, some of which are in the oil and natural gas industry.
“Hunters, energy, and mining companies have had to take a lot of risks to stay competitive,” said Paul H. Bowers, a senior research analyst with the Institute for Supply Management.
“If we don’t take more of those risks, we are going to lose some of those jobs.”
Bowers, who has been studying the oil industry for more than 15 years, said the industry is looking at ways to keep costs down and retain jobs.
“They’ve got to understand, they’ve got these investments they’re making and they’ve lost some of them,” Bowers said.
Bowers said some of the biggest companies in the industry, such as Devon Energy and Halliburton, have made a lot out of their investments.
“These companies have built huge fortunes,” Bower said.
“They’re spending billions and billions and millions of dollars in this industry.”
Some of the big investments that Devon Energy has made include the construction of a new facility in Oklahoma City, the creation of a liquefied natural gas terminal in the U.S., and the expansion of the Halliburts’ drilling rig.
The Halliburtons’ new drilling rig has been in the water for more years than Devon Energy, which has been operating the rig for nearly 20 years.
But the Halliborts have said the rig is in “the early stages of development,” and Devon Energy is still developing a new platform and oilfield infrastructure.
Bower said Devon Energy could lose up to 5% of its workforce in a downturn, and Hallibort said it could lose 5% to 10% of the workforce.
Halliburton has not yet announced a plan to close the drilling rig in Oklahoma, but it has announced plans to hire workers in other locations to support its operations in Oklahoma.
Biers said some industry leaders are trying to figure out how to balance the need to keep the rigs running with keeping up with market demand for energy products.
“That’s where they need to have a rethink,” Biers said.
“It’s not a new question.
The industry has been looking for solutions for the last 10 to 15 years.”
H.T. Stewart, chief executive of the American Petroleum Institute, said it is a difficult issue for energy companies.
“The industry has had to invest a lot more in infrastructure, new facilities, new technology and equipment,” Stewart said.
Stewart added that companies have also had to rethink their business models, because of the changing industry and the need for more diversified products and services.
Stewards own energy company, Stewart Energy, employs over 4,000 people in the Oklahoma City area.
Stewarts goal is to have 3,000 employees by 2020.
He said that’s more than double the current number of employees.
“If we can continue to build the capacity of our businesses, and we have the right employees, that will help us to keep our customers happy and competitive,” Stewart added.
Stewkins company employs about 1,500 people in North Dakota and has invested about $5 billion in North Dakotan operations.
Stewert said the company will not make any decisions until after the election in November, but he said the election could have a major impact on the industry.
The industry is trying to understand how to make decisions that are in their best interest.
Burszczykowski said the oil price has remained stable in the past couple of years.
“This year, the oil market has been very, very healthy.
We are in a very strong position to continue to compete with other energy companies in a way that will benefit our company,” Burszczewski said.
He said there has been some “unexpected volatility” this year.
“There is a lot that is unexpected in the energy markets,” Bulszczkowski said.