{"text":[[{"start":5.84,"text":"When Donald Trump took office last year, he promised to revitalise the fossil fuels industry and boasted about creating hundreds of thousands of energy jobs by slashing environmental regulations and enabling a wave of drilling."}],[{"start":19.04,"text":"So far, his administration’s record is mixed. Oil production and corporate profits have jumped to near-record levels, driven in part by a surge in petrol and diesel prices caused by the Iran war. Yet employment in the US oil and gas sector has fallen by almost 13,000 jobs since the president was inaugurated last year."}],[{"start":38.52,"text":"Data published by the US Bureau of Labor Statistics shows employment in oil and gas extraction fell to 114,500 in July, the lowest number since the height of the Covid-19 pandemic when oil production collapsed. Oilfield services jobs, a category that includes some mining and logging positions, have fallen by about 7,500 to 264,600 since January 2025."}],[{"start":64.84,"text":"The drop in employment has occurred despite crude production rising by about 4 per cent to 13.8mn barrels a day since Trump’s inauguration. Natural gas production is also forecast to hit a new record high, averaging 122.5bn cubic feet per day this year."}],[{"start":82.48,"text":"The drilling boom has generated windfall profits for producers and refiners, enabling the two largest US companies, ExxonMobil and Chevron, to generate a combined $26.5bn profit in the second quarter and triggering a political backlash."}],[{"start":98.2,"text":"But there has been far less focus on the jobless nature of the oil boom or what is causing the industry to hold fire on hiring despite the surge in profitability. Part of the reason is that some companies are implementing cuts announced last year when there were concerns that a global oil supply glut could force crude prices down to the $50-a-barrel level."}],[{"start":null,"text":"
"}],[{"start":117.88,"text":"ConocoPhillips, Chevron and BP have laid out plans to cut their workforces by up to 25 per cent, 20 per cent and 5 per cent respectively, and some of these cost-reduction programmes are ongoing. Chevron and Conoco are both integrating large acquisitions — Hess and Marathon Oil — while BP is executing a company-wide restructuring under new chief executive Meg O’Neill."}],[{"start":141.44,"text":"The corporate focus on cost-cutting and streamlining staff numbers continues a long-term trend in the US oil industry, which has prioritised investor returns over expansion after the shale market crash in 2014-16."}],[{"start":154.48,"text":"Breakthroughs in drilling technology, automation and artificial intelligence have provided tools to enable companies to streamline their operations while continuing to boost production. And some companies have outsourced engineering jobs to technology centres in India."}],[{"start":170.88,"text":"“The industry has demonstrated remarkable technology and labour efficiency gains over the last 15 years. It now takes less than half the number of people to produce the same amount of oil and gas as it did at the start of the shale boom,” said Kevin Book at ClearView Energy Partners, a consultancy."}],[{"start":188.84,"text":"Exxon’s global workforce has fallen by about 24,000 to 58,000 people over the past 15 years while Chevron’s has dropped by about 19,500 to 43,000."}],[{"start":201.12,"text":"The American Petroleum Institute said the industry was experiencing workforce adjustments, as new technologies and productivity gains reshape operational needs. It said growth areas such as liquefied natural gas were creating opportunities and supporting jobs."}],[{"start":216.96,"text":"But there are few signs companies are increasing spending or hiring in 2026 despite the $542bn cash flows the global industry is forecast to generate this year — double initial projections before the Iran war. Energy research group Wood Mackenzie forecasts upstream investment in 2026 will fall to $512bn, compared with $527bn last year, in part due to project delays in the Middle East."}],[{"start":244.7,"text":"In the US, companies have largely stuck to spending plans, with Wood Mackenzie forecasting investment dipping to $124bn in 2026, down from $127bn last year, as efficiency efforts continue to offset budget increases."}],[{"start":260.54,"text":"Analysts say the industry is taking a “wait-and-see approach” partly because of uncertainty caused by conflicts involving Iran and Russia-Ukraine. Washington’s tariff wars with Canada and other countries have also unnerved some in the industry."}],[{"start":274.44,"text":"“The persistent policy shifts have kept management teams cautious and put new spending on the sidelines,” said Michael Alfaro, chief investment officer of Gallo Partners, an energy and industrials-focused hedge fund."}],[{"start":290.41,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1788219730_9822.mp3"}