Keppel Sees Prolonged Slowdown in Oil

The video discusses the challenges faced by companies in the offshore drilling sector due to overcapacity and falling demand. It highlights the financial struggles and job cuts by major companies like Hyundai Heavy Industries. The CEO emphasizes the need for realistic expectations as the market is overbuilt. Future strategies include relying on natural attrition and possibly ending contracts early. The industry has seen significant job losses and investment cuts since oil prices began falling in 2014.

What has been a major factor leading to job cuts in the offshore drilling industry?

• Rising oil prices

• Expansion of drilling facilities

• Overcapacity and reduced demand

• Increased demand for offshore drilling

What financial challenge did the company face last year?

• A 65% fall in net income

• Stable net income

• A slight increase in net income

• A 65% increase in net income

What measure did the company take to cope with financial difficulties?

• Opening new facilities

• Pay cuts for senior managers

• Pay raises for senior managers

• Increased hiring

Since when have companies in the oil and gas sector been eliminating jobs?

• 2020

• 2018

• 2014

• 2010

What strategy has the company been using to manage workforce reductions?

• Immediate layoffs

• Natural attrition

• Increased overtime

• Hiring freezes