Oil Market Better Supplied – Outlook on Staffing in the USA

September 12th, 2012

What is the oil industry staffing situation? If you are in this industry, you monitor the current market conditions carefully to determine if you will have a job, where you will have one and what the next step will be. A look at the reports for 2012 in North America, and more specifically Texas, can give you a good idea of what is really happening out there.

Current Oil Supply

According to reports, the International Energy Agency has concerns about the oil markets going forward. The agency, in a report issued in June of 2012, indicates that crude oil output from the Organization of Petroleum Exporting Countries (OPEC) averaged 31.9 million b/d during the month of May. That is significantly higher than the December 2011 output. In fact, it is 1.4 million b/d up.

At the time of the report, oil prices were down $25/bbl from the highs they hit in March. The last 18 months have had a bullish market in this area. There is no doubt that concerns about the Eurozone and China itself have caused enough tension to worry some investors.

Better But Not Oversupplied

The organization classified the market as being better supplied. However, it noted that it was not over supplied. Tight inventories at the end of 2011 and historically high prices have ensured this is the case. The concerns about Iran that occurred throughout the summer months and concerns about non-OPEC products also are a factor.

So, What’s the Future Hold?

For those who are wondering what the future in this market is, IEA states that production may be slightly lower in the third and fourth quarters of 2012. That is due to the US sanctions on Iranian oil sales and European Union embargo play out. Oil demand growth is also left unchanged.

When all of this is factored into the current conditions in Texas and in the United States in general for oil staffing, it looks like the rest of 2012 will be a positive but stable market for the country. With oil prices up, consumers will cut back. That may mean less production in many cases.

Production is unlikely to stop in the coming year, but that does not mean it will grow significantly either. In fact, when it comes to staffing in oil companies, many companies will likely hold off as the summer season winds down and the overall demand falls back during the colder months.

Be sure to review previous posts on the topic of the oil industry job market here:

The Effect of Rise in Oil & Gas Prices on the Tech Industry

Oil and Gas Industries: Consistently Contributing to Our Economy