Occidental Petroleum Corp. CEO Stephen Chazen says new money flowing to oil companies could prolong the industry’s downturn if it keeps financial pressure off U.S. producers who might otherwise dwindle or sell.
The number of drill rigs operating in the San Juan and Permian basins has dropped from 85 to 60 over the past year, and state energy Secretary David Martin said each rig directly employs 50 workers and another 50 to 70 in support jobs.
The oil and gas industry saw 112 workers die in 2013, the latest figures available from the U.S. Bureau of Labor Statistics. That’s up 31 percent from 2003. Meanwhile, producers and drillers doubled their workforce in the same period, to 507,000.
Both firms have businesses running piping and casing for oil companies that are constructing wells, part of the post-drilling processes that lead firms to extract the first barrels of oil out of the ground.
The service costs associated with housing and feeding employees in remote locations like the Permian Basin in West Texas and the Bakken Shale in North Dakota typically skyrocket in boom times, Halliburton President Jeff Miller said.
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