For the complete article use this link--> Price decline hits oil patch Albuquerque Journal News
By Kevin Robinson-Avila / Journal Staff Writer
PUBLISHED: Wednesday, March 25, 2015 at 12:05 am
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At least 2,000 jobs will likely be lost in New Mexico’s oil and gas industry in the coming months because of sharp declines in the price of crude oil, according to estimates by the New Mexico Energy, Minerals and Natural Resources Department.
The number of drilling rigs operating in the state has dropped from 85 last spring to 60, department Secretary David Martin told participants at the annual San Juan Basin Energy Conference in Farmington on Tuesday. The rig count dropped in both the Permian Basin in southeastern New Mexico and the San Juan Basin in the Four Corners area as producers slashed planned production to compensate for plummeting oil prices, which fell from more than $100 per barrel last summer to less than $45 in early January.
With 50 employees working directly on each drilling rig, and another 50 to 70 people employed in support jobs, Martin said his estimate of 2,000 layoffs is conservative.
“So far we haven’t seen a decrease in oil production in New Mexico, but we expect it to begin leveling off, and that means lost revenue and jobs in the coming months,” Martin said.
By Kevin Robinson-Avila / Journal Staff Writer
PUBLISHED: Wednesday, March 25, 2015 at 12:05 am
........................................................................................................................................................................................
At least 2,000 jobs will likely be lost in New Mexico’s oil and gas industry in the coming months because of sharp declines in the price of crude oil, according to estimates by the New Mexico Energy, Minerals and Natural Resources Department.
The number of drilling rigs operating in the state has dropped from 85 last spring to 60, department Secretary David Martin told participants at the annual San Juan Basin Energy Conference in Farmington on Tuesday. The rig count dropped in both the Permian Basin in southeastern New Mexico and the San Juan Basin in the Four Corners area as producers slashed planned production to compensate for plummeting oil prices, which fell from more than $100 per barrel last summer to less than $45 in early January.
With 50 employees working directly on each drilling rig, and another 50 to 70 people employed in support jobs, Martin said his estimate of 2,000 layoffs is conservative.
“So far we haven’t seen a decrease in oil production in New Mexico, but we expect it to begin leveling off, and that means lost revenue and jobs in the coming months,” Martin said.
