Consequences for domestic oil & gas companies resulting from the Research Paper

Consequences for domestic rock anoint & screw up companies resulting from the recent crash in oil prices - Research Paper ExampleAccording to Baker Hughes, in that location was a reduction of energy industry oil bearded darnels by 16 rigs in the week closedown December 23, 2014 with 26 more rigs trim in the week ending January 2, 20153. The decline in the rig count is evidenced by the chart below.The other impact on the US oil and splosh companies is a reduction in drilling of new wells with a give back of 40% in issuance of new permits for oil production in the United States in November in response to fall in oil prices. Hemerich & Payne, an energy exploration and production confederation based in Tulsa, reduced its oil rigs by 50 in January in response to the low oil prices after a previously reducing its oil rigs by 11 rigs.The other impact of the declined oil prices on US oil and gas companies is a reduction in share prices. US shale producers shares fell by 8.4% on Ja nuary 5, 2015. The fall in oil prices resulted in the fall of share value of Continentals resources by 12%4. Transoceans shares declined by 7% making it a 65% fall in stock for the go with within the last one year5. Rigs witnessing low production have also been shut to allow the companys to concentrate on more productive rigs.The fall in oil prices also resulted in the layoff of workers in the oil and gas sector. Schlumberger (SLB) stated low oil prices and few wells being drill as reasons for dismissal of 9,000 workers6. A total of 53,041 chew overs were deep in thought(p) in January in the United States with 40% of the job cuts being directed related to the fall in oil prices7. Of the 53,041 jobs lost, a high percentage was lost from the energy sector with 21,322 jobs attributed to oil price cut. Halliburton and ConocoPhilips announced 0.42% (1000 workers) and 0.75% job cuts in January respectively, because of the reduced prices of oil. In Texas, 19, 833 heap lost their jobs with the main reason being the fall in oil prices while Baker Hughes reduced its workforce by 7,000 workers.The fall in oil prices has also affected economies that were booming