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Kansas Fed survey: Oil firms to cut staff 22% in 2016

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Kansas Fed survey: Oil firms to cut staff 22% in 2016

Oil firms within the Federal Reserve Bank of Kansas City's jurisdictionexpect 2016 head counts to be 22% lower on average than in the previous year, withmost of the cuts coming from oilfield services. And while WTI prices are predictedto reach $45 per barrel by the end of 2016, the companies, again on average, saythey would need about $51 per barrel to be profitable in their areas of focus.

The figures are based on the Kansas Fed's survey results, releasedApril 8, covering oil-and-gas firms located and/or headquartered in Kansas, Colorado,Nebraska, Oklahoma and Wyoming; the western third of Missouri; and the northernhalf of New Mexico.

The respondents added that banks have required higher collateralon both existing and new loans, while alternative funding sources are fewer andmore costly. Despite this, debt levels are decreasing at more of the energy firms.