Chevron decided to lay off around 10% of their Midland employees.
Some oil experts say they’re not completely surprised because they believe it’s difficult to see an end in sight for the current oil downturn.
Elevation Resources CEO Steven Pruett, says it’s is giving him a blast from the past.
“It’s all too reminiscent of the early 80’s when I was new in the industry and the company I worked for closed two offices, that was a hard time,” he said.
Like the 1980’s, low oil prices are rippling into incomes, taxes, and even job security for West Texans.
“Unemployment will continue to increase in the Midland/Odessa greater Permian Basin for over the next year,” Pruett said. “None of us were prepared for $30.00 oil.”
The oil price plummet has put many Midlanders out of work, and now even more could have the same fortune.
Chevron sent us a statement saying, “We have done our best to inform our stakeholders of some of the changes underway.”
The company believes increasing efficiency is key to reduce spending, and they say it was a difficult decision to let some of their employees go.
Pruett has no doubt the unfortunate trend will continue, and he warns West Texans to brace themselves.
“Hold on to your hats and your wallets, it’s going to be a painful time to come,” Pruett said. “There will be a recovery, we just don’t know when and it’s likely not to happen before 2017.”
He predicts by 2020, prices will be anywhere between $60 and $80 per barrel, but until then he says it’ll be a bumpy road ahead.
(Information from YourBasin.com)
