More Layoffs Possible In Oil And Gas Industry In 2016

Tuesday, December 15th 2015, 11:22 am
By: News 9

The hits keep on coming to the oil and gas industry this year. A major company said after the holidays workers can expect layoffs. 

Shell announced it will lay off 2,800 workers in 2016. Experts predict Shell probably won't be the only energy company forced to lay off workers next year.

Crude oil opens at around $35 per barrel. That's the cheapest since February of 2009.

The drop is fueled by concerns about a surge in Iranian oil production and a surplus of oil here in the U.S., specifically in Cushing, Oklahoma.

The falling prices cost Chesapeake Energy stocks to lose 80 percent of its value this year. Lower oil prices means less production, and less production means fewer jobs and a lot of workers being let go.

Economist Adam Perdue said it's a pattern people are unfortunately getting used to.

"Everybody is trying to figure out exactly how long it's going to stay down, and so most people are accepting a scenario that people in the industry are calling 'lower for longer',” said Adam Perdue, Economist.

Drivers are benefiting from these cheaper prices. The national average for a gallon of regular gasoline is near $2.00. In Oklahoma, our average is $1.78 for a gallon.

However, most stations in the metro are near the $1.60 mark. 

Natural gas prices are also falling. Prices there have dropped due to our warm weather so far this winter.