Remember many months ago, some banks internal memo was leaked out on loans to people from the oil and gas industry? Well, before the downturn in oil prices, these oil and gas people were the ones being paid so high they could buy any of the usual luxury condos in KL. I read a long article about the oil industry a few days ago in The Star. Read it here. In brief, it said that the current retrenchments in the oil and gas industry is very bad and it is unlikely that the jobs lost will ever be back. The article gave many examples of why and they include even the fact that production of shale oil is a new phenomenon that will ensure oil prices remain low.
another oil giant announced that it will cut more. By the end of 2016, Royal Dutch Shell will cut a total of 12,500 including 2,200 announced on Wednesday.
The main reason?
Weak oil prices. Out of the 2,200 job losses, 475 will be from its upstream UK and Ireland businesses. Shell its cutting its expenditure swell as selling US$30 billion worth of assets to cover for the shortfall in earnings. Shell however said that as they continue to hire in IT and graduate level, total net job losses in 2016 would be lower than 5,000.
