U.S. Well Services Inc. on March 20 revealed immediate actions in response to the recent sharp decline in oil prices and challenging industry outlook that is driving extraordinary reductions in customer activity. The company is taking a number of corporate and operating cost-cutting measures to better align its expenses with client activity levels.
The company’s cost control plans include: a reduction in workforce driven by fewer fleets in operation, reductions in labor, materials and field overhead spend that will help rationalize the company’s cost structure, and a 20% reduction in annual base salary for its CEO, CFO and CAO.
“These are difficult times for the oil and gas industry that demand decisive actions and continuing adjustments to successfully navigate the challenges we face. We appreciate the dedication of all our employees and thank those that are departing the company for their hard work and wish them well in their endeavors,” Joel Broussard, U.S. Well Services’ president and CEO, said.
Recommended Reading
Bracewell: Many Await Updates to Existing CO2 Pipeline Safety Regulations
2025-01-15 - Pipeline proponents are facing challenges and have been hampered by the lack of clarity regarding CO2 pipeline safety regulations.
Kinder Morgan to Build $1.7B Texas Pipeline to Serve LNG Sector
2025-01-22 - Kinder Morgan said the 216-mile project will originate in Katy, Texas, and move gas volumes to the Gulf Coast’s LNG and industrial corridor beginning in 2027.
East Daley: New Pipelines Could Open Permian Floodgates
2024-12-18 - Led by the opening of the Matterhorn Express, a slew of projects is set to battle regional bottlenecks in the Permian Basin region but power generation may be the catalyst for newly announced pipelines.
Colonial Shuts Pipeline Due to Potential Gasoline Leak
2025-01-14 - Colonial Pipeline, the largest refined products pipeline operator in the United States, said on Jan. 14 it was responding to a report of a potential gasoline leak in Paulding County, Georgia and that one of its mainlines was temporarily shut down.
Trans Mountain Says Projects Could Expand Pipeline Capacity by 300,000 bbl/d
2025-02-06 - Trans Mountain is looking at expansion projects in the short and long terms that could add between 200,000 bbl/d and 300,000 bbl/d of capacity to the company's system.