As oil plunges, energy companies cut jobs, postpone projects

LONDON (AP) — The world's biggest oil companies are slashing jobs and backing off major investments as the price of crude falls to new lows – and there may be more pain to come.

Companies like BP, which said today it is cutting 4,000 jobs, are slimming down to cope with the slump in oil, whose price has plummeted to its lowest level in 12 years and is not expected to recover significantly for months, possibly years. California-based Chevron said last fall that it would eliminate 7,000 jobs, while rival Shell announced 6,500 layoffs.

And it's not even the big producers that will be affected most, but the numerous companies that do business with them, such as drilling contractors and equipment suppliers.

While plummeting oil prices have been great news for motorists, airlines and other businesses that rely heavily on fuel, some 95,000 jobs were lost in the energy sector by U.S.-based companies in 2015, according to the consulting firm Challenger, Gray & Christmas. That was up from 14,000 the year before.