Global Energy Shifts See Job Cuts in Oil, Nuclear Gains in Emerging Markets

U.S. oil and gas extraction employment fell to 114,500 workers in June, marking the second-lowest June on record since the Bureau of Labor Statistics began tracking the data, according to an OilPrice.com report. This decline comes even as production remains near record highs, underscoring a long-term industry trend toward greater efficiency with fewer workers.

The sector has shed 72,800 jobs since January 2016, when employment peaked at 187,300. The workforce now sits almost 40 percent below that pre-crash level. The report attributes the ongoing job losses primarily to automation, mergers, and investor pressure for returns over growth. The larger oilfield services sector, which employs roughly 627,000 people, has been losing jobs even faster.

This year's layoffs are heavily tied to major mergers. Chevron is cutting up to 9,000 jobs, or a fifth of its global workforce, as it integrates its $53 billion acquisition of Hess, according to OilPrice.com. Other majors like ExxonMobil, BP, ConocoPhillips, and Imperial Oil have also announced significant staff reductions. Productivity data shows output per hour jumped 11.4 percent in 2023 while labor input barely changed.

Globally, the energy trilemma—balancing affordability, sustainability, and security—is driving a nuclear power renaissance. Emerging economies are leading this charge, with most of the 80 nuclear reactors currently under construction worldwide located in these nations, OilPrice.com reported.

Bangladesh is making a $12.65 billion bet on nuclear power with its Russian-built Rooppur plant. When completed in 2028, the facility is expected to supply up to 15 percent of the nation's electricity, helping it decarbonize and reduce dependence on fossil fuel imports. This shift is part of a broader trend where countries seek to avoid over-reliance on intermittent renewable sources and volatile fuel markets.

In the United States, New Jersey is positioning itself at the forefront of next-generation nuclear technology. The state recently enacted a law launching a procurement process for a minimum of 1,100 megawatts of nuclear power from projects like small modular reactors (SMRs), according to OilPrice.com. The move is driven by ballooning energy needs from data centers and the tech sector, with state officials citing the need for clean, reliable baseload power.

New Jersey already sources 40 percent of its electricity and 80 percent of its clean energy from traditional nuclear plants. SMRs offer potential advantages for U.S. development, including lower costs, factory construction, passive safety features, and operational flexibility to help balance the grid.

For Bakken operators, these global trends highlight the continuing pressure to maximize operational efficiency and productivity amid a consolidating industry landscape where direct employment is contracting. Simultaneously, the growing global investment in alternative baseload power sources like nuclear may signal long-term strategic shifts in the energy mix.