(Adds quote, forecast for the year ahead)
Jan 6 U.S. oil and natural gas producers added
jobs in November, the sector's first monthly employment increase
in more than two years as drillers returned to the well pad due
to a rally in crude prices, according to U.S. jobs data on
Combined oil and gas extraction and support services jobs
increased by 3,300 to 384,300 in November, the first increase
since September 2014 when employment in the sector peaked at
536,100, according U.S. Bureau of Labor Statistics (BLS) data.
"Probably around August to September last year we started to
see an increase in the amount of need out there from companies
that are looking to hire and that continued through the
holidays, which is rare," said Jeff Bush, President of oil & gas
recruiting firm CSI Recruiting in Texas.
"I think we're going to see a very busy year for hiring in
oil and gas here in the United States."
Energy firms cut more than 155,000 jobs over the prior two
years as they slashed the number of rigs drilling for oil from a
record high of 1,609 in October 2014 to a six-year low of 316 in
May, according to the BLS data and Baker Hughes Inc's
Those cuts came during the biggest price rout in a
generation, in which U.S. crude futures collapsed from
over $107 a barrel in June 2014 to around $26 in February 2016
due to a global oil glut and lackluster demand for the fuel.
Crude prices have more than doubled from their February low
to around $54 a barrel as the Organization of the Petroleum
Exporting Countries (OPEC) and non-OPEC producers agreed to
reduce output during the first half of 2017 in an effort to stem
Analysts said U.S. exploration and production (E&P)
companies responded to those higher prices by adding more than
200 oil rigs over the past six months with even more spending
expected on drilling over the next year or two.
Analysts at U.S. financial services firm Cowen & Co said
this week in a note that capital expenditure tracking showed 25
E&Ps planned to increase spending by an average of 33 percent in
2017 over 2016.
That expected spending increase in 2017 follows an estimated
47 percent decline in 2016 and a 35 percent decline in 2015,
Cowen said according to the 65 E&P companies it tracks.
(Reporting by Scott DiSavino and Devika Krishna Kumar; Editing
by Marguerita Choy)