Hiring To Pick Up As The Worst Of Oil And Gas Bust Is Over

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It’s official. The oil and gas industry has been in what is widely seen as the trough of the bust cycle this year. The good news is that the bust period is over. This signals that it can only get better from here on. The gradual increase in the number of rigs on account of increase in activity in the Permian Basin is a positive trend. What’s more, hiring is expected to pick up, due to increase in sand mining. Read on to learn about what’s happening in the oil and gas industry.

Hiring To Increase As Demand For Sand Mining Increases

The increase in sand mining can be attributed to the demand for sand in oil and gas drilling. Sand is used to release the oil and gas from the dense shale rock, making it invaluable in oil production.

Deon Daugherty said in a recent article:

“While most aspects of the oilfield services sector (OFS) remain in the death grip of low oil prices, one side of the shale revolution is enjoying a resurgence: sand miners and merchants.

In 2014, sand demand soared to almost 62 million tons on an annual basis, U.S. Silica spokesman Michael Lawson told Rigzone. The tiny grains are a key part of the proppant used to keep fissures in dense shale rock open to liberate oil and gas.”

Worst Of Oil Bust Is Over

A recent report prepared by the Federal Reserve Bank of Dallas says that the worst of the oil glut is over and behind us. The number of people laid off in the month of August has decreased when compared to previous months.

Valerie Jones reported in a recent article on Rigzone:

“Houston, the world’s energy hub, may have seen the worst of the oil glut, according to a Sept. 26 report by the Federal Reserve Bank of Dallas.

While the report stated Houston wasn’t yet recovering from the downturn, the worst of the oil bust and its effects are in the rear view.

With oil priced between $40 and $50 the entire summer, it helped the rig count climb from 35 to 467. The count is expected to increase again this month, mainly because of increased activity in the Permian Basin.”

The stability in oil prices the entire summer helped in increasing the number of rigs operating. This translates to more job openings for people to man the oil rigs. With the adoption of automation and technology, it is predicted that people who know how to use the technology will be needed in oil rigs. Hiring will gradually pick up in the sand mining business.

As the worst of the bust is over, it can only mean that good times are ahead. Find out why hiring is expected to pick up as the worst of the oil and gas bust is over.