Oil and gas companies are cutting costs and firing thousands of employees as analysts and government forecasters warn that crude prices could shrink to their lowest levels since Covid-19 shutdowns caused oil demand to crater five years ago.
BP, Chevron and ConocoPhillips have all outlined large-scale layoffs planned this year. And Bloomberg reported last week that Exxon Mobil, the nation’s biggest oil and gas company, plans to ax 2,000 jobs from its global workforce as part of an efficiency push.
Analysts say oil companies of all sizes are tightening their belts ahead of 2026, when the U.S. Energy Information Administration forecasts prices could average about $52 for a barrel of global benchmark Brent crude. A recent Wood Mackenzie survey of 32 oil companies found they usually need Brent prices to be around $60 a barrel to break even and continue paying dividends to shareholders.
Brent oil spot prices have fallen this year from a monthly average of $79.27 a barrel in January to $67.99 a barrel in September, according to EIA. On Tuesday, Brent crude was trading for about $65.
