How is the world oil market hurting Louisiana? Lately oil prices have been dropping due to the influence of Saudi Arabia, and though it is helping drop prices at the pump, it can hurt Louisiana workers in ways you didn’t realize.
How Are Low Oil Prices Affecting Businesses?
The lower oil prices have begun to affect the companies drilling onshore and just offshore. These companies are having to slow down production, which means they have less demand for employees. Experts are anticipating layoffs and the closing of some of Louisiana’s oil rigs, and it appears that some of the smallest oil companies will be the hardest hit.
Is The World Oil Market Hurting Louisiana?
One expert told a reporter that, “It’s not a pretty picture… We will see mergers, acquisitions… we are going to see bankruptcies.” He continued on to say that even fewer drilling permits were being filed, and we can’t expect relief from foreign markets, which leaves us searching for solutions at home.
Right now China is experiencing an economic downturn, which means that their country’s oil consumption rate can be expected to drop off, but Louisiana herself is an oil consuming region. Refineries in Baton Rouge, Lake Charles and along the Mississippi and Calcasieu rivers will actually benefit from lower gas prices—as will consumers—and that could lead to jobs to compensate for the reduced oil field work. However, oil field workers need to be especially careful.
When oil prices are low, sometimes oil companies will try to cut budgets in ways that can put their employees at risk. This can lead to more injuries out in the field, which can lead to steep medical bills and lost earning hours, but employers are still responsible for on-the-job accidents like this. Contacting an attorney with firsthand experience dealing with the oil industry can be one of your best solutions. Come and see what the lawyers of Galloway Jefcoat can do for you, and keep following our blog for updates on the Louisiana job market.
Galloway Jefcoat LLP—Personal Injury Attorneys in Lafayette, LA