Price decline hits oil patch

Albuquerque Journal ^ | 3/25/15 | Kevin Robinson-Avila

[Perkinsbob54]

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.

[Perkinsbob54]

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.

[entropy12]

Where are all the leftists screaming “peak oil” is here??

[SunkenCiv]

• Saudi Arabia's Yemen Offensive Might Just Boost Their Oil Revenues

[Ruy Dias de Bivar]

Sob! I miss the oil and gas fields of NM! Was in Farmington back in 1954-56. Then SE NM in 1960-1962, then back up to Farmington.
When the economy went belly up in the early 1980s we saw large numbers of trailer caravans heading South along NM hwy 44.

I love that area.

[ontap]

Hard to have a lot of sympathy.....what about the businesses that went under when oil was in excess of $100.00 a barrel. I'm afraid this is called capitalism. Virtually every family and business outside the oil industry is thriving because of cheaper energy...and that's a good thing!!!

[CedarDave]

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