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Wednesday, July 17, 2019

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NOV closure to cost 80 employees jobs, Noble Drilling to lay off 100 plus

NOV closure to cost 80 employees jobs, Noble Drilling to lay off 100 plus

HOUMA, La. (AP) — National Oilwell Varco, a manufacturer and parts supplier to the oil and gas industry, is shutting down its facility in Houma, Louisiana, and that will put 80 employees out of work.

The Louisiana Workforce Commission tells The Advocate the layoffs at the facility started Monday, and will continue in phases until NOV shuts down sometime between March 7 and March 21.

State officials say they will provide re-employment services to the affected employees, including information on unemployment benefits, résumé help and job-searching tools. Houston-based NOV said it will provide workers with additional pay and benefits because they were unable to provide sufficient notice of the closure "due to economic reasons."

Noble Drilling, based in Sugar Land, Texas, announced plans to tie up the Noble Danny Adkins rig, resulting in layoffs between 100 to 120. According to the Daily Comet, the crew-change takes place in Galliano.

Last year, Baker Hughes, McDermott, Bollinger, Hercules Offshore and CHI Aviation all announced layoffs.
Edison Chouest also laid off 2,000 employees internationally last year.

The area economy, which once boasted the lowest unemployment rate in the state, has been hurt by oil prices dipping into 12-year lows. Crude oil prices closed Tuesday at $28.46 per barrel, down nearly 75 percent from its high of about $115 a barrel in June 2014. Prices rose to above $60 a barrel last spring and early summer, but have plummeted since.

State economist Loren Scott projected the Houma-Thibodaux region would lose another 2,000 this year due to the low crude oil prices.

However, a turnaround may be just around the corner. Scott projects prices to rise to $55 a barrel within the calendar year and to $60 a barrel in 2017, when he expects the area to add 1,000 jobs.