Job cuts starting to hit oil related businesses

Fuel Fix:
Oil-field lodgings company Civeo Corp. said it has slashed its workforce in the United States by 45 percent and in Canada by 30 percent as it prepares for weaker occupancy rates at its oil-field camps next year.

The Houston-based company had more than 4,000 employees when it spun off from oil field services firm Oil States International in June.

The announcement is the latest oil-field services layoffs in reaction to falling oil prices and anticipated oil-company budget cuts. Houston-based Hercules Offshore said it would reduce its headcount by 324 and oil field giant Halliburton said it would cut 1,000 jobs across multiple regions in the Eastern Hemisphere.

Civeo also is cutting its spending plans for 2015 to $75 million to $85 million, down from its budget this year of $260 million to $280 million, as it anticipates lower demand for lodging services. It said it may be required to record impairment charges on its assets.
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The cuts show the flexibility that private companies have over government related employers when it comes to a change in the revenue stream.  It is why state owned oil businesses are harder hit by the downturn in prices caused by the increased supply.

As many as 250,000 jobs could be lost in seven oil producing states including Texas.

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