Employment Affected By Falling Gas Prices

Dropping gas prices is helpful to citizens in local communities and across the state but what the repercussions are still remains to be seen.  Gas prices are the lowest they have been in 3 years. Those struggling to recover from the recession view it as a positive but the overall outlook may be grim for many. Though gas production is the highest it has been in 24 years, employment of those in the industry depends on the rise and fall of the price of crude. It is projected that thousands of jobs will be lost to the decline in exploration. Petroleum Industries that reserved adequate liquidity to balance their costs should be fine during this period, but those that are hinged on a high rate of sale may find they having difficulty keeping their doors open. Cutting costs to remain in business may entail laying off workers or decreasing hours worked that could send employees looking for other jobs to sustain their income. The drop in oil prices is not a crash, but drilling activity and rig count is affected by this. Those living in many small Texas communities aren’t able to find jobs locally so the oil industry is where they seek employment. Locally oil production is at a high and gas prices are low but this is a double edged sword when it comes to the employment rate. The price at the pump is low for consumers but overall it will affect the lives of those searching for jobs due to closing and revamping of the companies they work for. Due to decreased exploration and lowered production the future of the oil industry in Texas  and for those it affects is still left to be seen, and the true impact will not be known until mid 2015.  

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