Driller Lariat Services laid off 265 people in the Permian Basin as it closes its divisional office, company officials confirmed Thursday, representing another sign of the downturn’s impact on jobs amid low oil prices.
“We’ve already got rid of them,” said Manuel Molinar, the Odessa-based operations manager of pulling unit services in the Permian Basin, saying the layoff notices given this week were to “all the departments. Lariat Services is shutting down in the Permian Basin.”
He referred further questions to corporate officials with Lariat’s parent company SandRidge Energy, an Oklahoma-based exploration and production company.
“It’s safe to say that both a steep contraction in crude oil prices and the downturn in the number of drilling rigs had a big impact on that decision,” said Jeffrey Wilson, the vice president for government and public affairs for SandRidge. “A $60 decline in the price of crude oil in the past six months weighs heavily.”
The regional oil price benchmark, Plains-West Texas Intermediate, ended at $41 on Thursday. That is nearly 60 percent less than the peak price of June.
Workers on drilling rigs and oilfield services crews, which include jobs like hydraulically fracturing wells, are expected to be the hardest hit by the drop in oil prices as producers scale back in an effort to wait out the price slump.
This article was written by Corey Paul from Odessa American, Texas and was legally licensed through the NewsCred publisher network.