The world’s third largest oilfield services company Baker Hughes Inc. plans to slash 7,000 jobs due to reeling oil prices, which are pushing big oil to cut production and new projects.
“This industry can’t simply hope and wait for oil to climb back over $100 a barrel. Instead, we must adapt to a new reality of sustained lower commodity prices,” Martin Craighead, CEO, said during a conference call discussing 4th quarter earnings on Tuesday.
West Texas Intermediate crude oil, the most common blend in the US, is priced at $46.40, less than half its value in September of 2014. Bank of America has forecast oil could drop as low to $31 per barrel in 2015.