What The Downturn Holds For Oil Rig Workers

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While a majority of oil rig workers are anxious about keeping their jobs and experience job insecurity, it looks like the downturn will not last long. Although at present, the number of job cuts are increasing, the scenario will not last long. As the production of oil continues to decline owing to low oil prices, the prices are likely to stabilize and grow higher, leading to a recovery in oil prices. This article explains about what the downturn holds for oil rig workers.

Using The Downturn To Meet The Shortage Of Workers In Other Industries

Other industries can take advantage of the downturn to meet the shortage of labour and execute projects, without leading to unnecessary delays and expenses. While many oilfield workers are losing their jobs on one hand, other industries are experiencing a shortage of workers. Although the pay is less in other industries, finding jobs in other industries will provide a reliable source of income to meet the household expenses.

Corey Paul said in a recent article:

“Taylor argues that using the downturn to relieve some of the strain in industries outside the oilfield is key and will help stave off the shortages in recent years when oil prices rebound.

Not every displaced oilfield worker can shift into other careers, if, for example, they adapted their lifestyle to the higher pay.

The construction sector was another to feel the strain of the oil boom, as developer after developer saw projects delayed or cost more because of a tight labor market.”

Future Production Set To Decline, Leading To A Recovery In The Oil Industry

With the profitability of oil and gas companies impacted by the dip in oil prices, many rigs are closed or de-commissioned, leading to low productivity. As the oil production continues to dip and is unable to meet the demand, oil prices will increase. This in turn will lead to a recovery in the oil and gas industry.

Matt DiLallo said in a recent article:

“As the rig count falls so does future production, which is the key to erase the oversupply of oil on the market. As a result of this dropping rig count, production in the play is beginning to decline because the industry isn’t bringing enough new wells online to keep production steady.

Now that the market is showing signs of returning to balance it suggests that oil prices could continue to move higher, which will improve the profitability of oil companies and eventually lead to a recovery in oil stocks and oil industry jobs.”

Oil rig workers will then find jobs in the oil and gas industry as the production increases to meet the demand for oil.

The downturn which has resulted in job losses for several thousand oil and gas workers will see things improving in the future. Read this article to learn more.