Shale Worker Pay Growth Slows
Monthly wage growth in the US shale patch slowed to less than 1% in November as explorers pulled back activity in an effort to manage record costs in the oilfield.
Average hourly earnings in oil and gas extraction for nonsupervisory workers were up 0.6% in November from the previous month to $42.19, according to Bureau of Labor Statistics data released Friday. Compared with a year ago, the 13% growth matches last month’s annual change.
Labor shortages in the oilfield have been one of the biggest hurdles holding back production growth. The overall number of workers employed in US oil and gas jobs totaled 136,100 in December, down 3.1% from last year’s peak in July. Near the start of 2022, oil workers showed a willingness to leave the industry for higher pay elsewhere. But record profits throughout the year allowed oil companies to boost compensation in order to lure more workers back.
The jobless rate in oil and natural gas fell to 1.9% in December from 3.1% in the prior month on an unadjusted basis, government figures show. That compares with an unemployment rate of 5.8% a year ago.
The slowdown in oilfield earnings growth fits the overall trend seen across the US economy last month, indicating a resilient labor market that may allow the Federal Reserve to further slow interest rate hikes.
Shale drillers typically reduce drilling during the final weeks of the year as annual budget outlays are exhausted. Oilfield inflation was as much as 25% last year, according to estimates by JPMorgan Chase & Co., causing some explorers to slow activity as costs ate into budgets.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Carbon Capture, CO2 Removal to Play Key Decarbonization Role: S&P Global
- EU Posts 2.8 Percent Lower Fossil Fuel CO2 Emissions for 2022
- USA Buying 6MM Barrels to Refill SPR
- Generative AI Will Have Profound Impact Across Sectors
- UK Government Announces New Oil and Gas Tax Changes
- Aker BP Completes Record-Breaking Drill for North Sea Discovery
- North Dakota Tribe Buys Enbridge Pipeline
- Short Sellers Refuse to be Cowed
- Iran Says There Are No Negotiations with USA Over Nuclear Deal
- Shell CEO's New Strategy Sees Long Term Future for Natural Gas
- Saudis Remind Global Oil Market Who is King
- USA EIA Hikes Up 2023 and 2024 Brent Oil Price Forecasts
- Debt Ceiling Deal Becomes Law
- Two Main Forces Have Come Together to Pull Down Commodity Prices
- Biden Urged to Demand Climate Emergency as Smoke Chokes Washington
- Macquarie Group Reveals Oil Market Outlook
- Americas Exploration Heats Up
- UK Offshore Energy Calls for Labour Party Meet
- Oil Down as Demand Concerns Supercede Saudi Cuts
- Aker BP's 1.07 Bboe North Sea Projects Get Parliament Nod
- Which Generation Is Most in Demand in Oil, Gas Right Now?
- Who Is the Most Prolific Private Oil and Gas Producer in the USA?
- Is There a Danger That Oil and Gas Runs out of Financing?
- What Will World Oil Demand Be in 2023?
- BMI Projects Gasoline Price Through to 2026
- North America Rig Count Reduction Rumbles On
- Saudis Remind Global Oil Market Who is King
- What New Oil and Gas Jobs Will Exist in the Future?
- What Does a 2023 USA Recession Mean for Oil and Gas in the Country?
- USA Oil and Gas Supported Nearly 11MM Jobs