Oil Prices: Good for Consumers, Bad for Workers

By Maggy Villarreal

As the price of oil continues to plummet, so does the job market in the oil industry.

Since January, gas prices have steadily decreased. Spiking a bit for spring break, gas prices are averaging $1.76 in Lubbock this week. However, the average at the beginning of March was $1.49. Gas prices have not been this low since the 1990s.

Oil pumpjacks can be seen all over West Texas. Picture by Eric Kounce.

Oil is an important industry in West Texas, and when it struggles, others do as well.

Hunter Berry is an electrician for Bryant Electric. When wells go down on the electrical side, he is the one who fixes them. The low oil prices, which have slowed down production, have affected his work, too.

“It does affect us a lot,” Berry said. “Pumpers that go up there and check wells, tanks, batteries, everything, they basically have everything to do with us making money. When they don’t call us to go out there and fix their problems, we are not out there selling parts, or fixing their problems and not making money.”

People who do not work in the oil field, or have family who works in the oil field, usually do not consider the job security turmoil when they talk positively about how low gas prices are.

Jeremy Neill,  a contract pumper for a family owned company, does not find it amusing when people rave about low gas prices around him.

“It’s really just kind of annoying, because, yeah, you are saving a buck or two on gas per gallon, but overall, it is going to affect the economy because if people don’t work, then they aren’t able to spend money on other things,” Neill says.

Because of the uncertain nature of the oil industry, many oil field workers have a backup plan for when times get tough. Layoffs are possible. Certain companies will hire employees back when the market goes back up.

David Fisher, a supply team manager for Oxy Oil and Gas, said it is cheaper to rehire laid off employees than to hire new ones. However, laying off employees is the last resort for most companies.

“It costs more to go out and hire people and train people than it does to keep the current employees that we have and just kind of make it through these more difficult times,” Fisher said.

Oil prices are expected to rebound by the end of 2016.