.jpg)
1 hour ago
3
Article content
(Bloomberg) — Wages for oilfield-services workers climbed for a third straight month in May, setting a fresh record as the Iran war drove up crude prices and companies increased drilling.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Average hourly earnings for workers who drill and frack wells rose 1.6% in May from a month earlier to $38.01, according to Bureau of Labor Statistics data released Thursday. Pay for the sector, which includes companies such as SLB and Halliburton Co., is up 5.2% compared to a year ago.
Article content
Article content
US crude prices averaged almost $100 a barrel during May as the conflict in Iran trapped about 20% of the world’s oil supply in the Persian Gulf. That prompted US companies in the nation’s shale fields to boost output, driving up demand for workers.
Article content
Article content
At the same time, drillers in the Permian Basin of West Texas and New Mexico have been following through on earlier plans to expand natural gas output in anticipation of pipeline projects scheduled to come online later this year, according Jesse Thompson, senior business economist at the Federal Reserve Bank of Dallas.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Data-center construction in West Texas is also pushing up wages, said James West, an energy analyst at Melius Research. The region has become a hot spot for artificial intelligence investment because of abundant land and access to cheap, plentiful energy. Attracting workers, however, means luring them from the oil patch.
Article content
“You don’t have a lot of labor that’s not already working in the oil field,” West said in an interview.
Article content
Wages for workers in the oil exploration and production sector, which includes shale companies and giants such as ExxonMobil Holdings Corp., fell for the first time this year in May, slipping 1.2%, to $44.36.
Article content
Advertisement 1
English (US)