Company News

STEP Energy Services, NCS Multistage cut jobs as oil collapses

April 7 (Reuters) - More oilfield service companies dismissed workers this week after oil prices collapsed to near two-decade lows amid a price war among top producers and falling demand from the spread of the novel coronavirus.

Houston, Texas-based NCS Multistage Holdings is cutting about 80 employees, or 20% of its workforce, according to a filing. The company provides services for fracking shale oil wells.

Canadian firm STEP Energy Services also is shedding workers in Texas and Oklahoma oilfields due to the “drastic downturn in oil,” the company said in a workforce filing.

The layoffs will impact 151 people at two Texas facilities and a handful of people in Oklahoma, it said.

Firms that provide oilfield services and equipment had barely recovered from the 2014-2016 downturn before oil last month crashed to about $20 a barrel. Many were already operating on thin margins, and now face customers pushing for price cuts.

French drilling pipe manufacturer Vallourec this week said it was cutting 900 jobs, or one third of its North American workforce, after activity collapsed in the oil and gas industry.

The decision was “necessary in a quickly deteriorating environment,” Chairman Edouard Guinotte said in a statement on Monday.

Halliburton, the largest hydraulic fracturing operator in the United States, on Monday said it was “significantly reducing” its workforce, and its executives agreed to take a pay cut. (Reporting by Liz Hampton Editing by Paul Simao)