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5 Reasons Low Oil Prices Could Mean Big Trouble for Offshore Rig Workers in Houston, TX

Oil Prices Down

It’s no secret that the price of oil plays a major role in the lives of offshore oil and gas workers.

When oil prices are up, it’s common for offshore workers to make well over $75,000 a year.

But when oil prices start dropping significantly—as they have in recent months—many oil companies will begin doing whatever they can to cut costs and save money.

Unfortunately, those protective measures—intended to save the companies from financial ruin—can also result in you losing your job or even worse, suffering a serious maritime injury!

Here are 5 reasons why recent low oil prices could mean big trouble for offshore rig workers like you:

  • Unseaworthy Vessels/Rigs
    • Eager to cut expenses, some companies will start laying-off essential rig personnel and even cutting back on necessary maintenance. When, for example, there are only 2 people to do a job that requires 4, not only do the chances of an injury increase substantially, but the vessel becomes “unseaworthy.” Under the Jones Act, offshore workers who are injured because the vessel was unseaworthy are often entitled to significant financial recoveries, including their past and future lost wages, past and future medical expenses, and damages for pain and suffering, physical impairment and physical disfigurement.
  • Cutting Corners
    • With fewer rigs operating in the Gulf of Mexico, oil companies will seek to squeeze as much profit as possible out of those that remain in operation. For some, that means cutting corners—and taking risks—in the name of continuing to make money.
  • Fewer Jobs
    • The price of oil has dropped a staggering 50% since the summer, the lowest it has been in 4 years, with many experts forecasting more of the same over at least the next 18 months. As a result, oil companies are rushing to cut costs and save money by idling rigs, slashing production and laying off what they consider to be “excess” personnel. Why? Because oil company executives generally prefer to fire offshore workers rather than take a pay cut themselves.
  • Cutting Back on Essential Maintenance
    • One of the first things to be neglected when oil prices drop is maintenance on equipment, even critical components. When a company fails to maintain equipment, the risk of injuries increases significantly and the rig becomes unseaworthy.
  • The Number of Injuries Increase Substantially
    • When oil prices fall, some companies will literally do anything they can to protect themselves from losing money, including laying off essential rig personnel and cutting back on required maintenance. Unfortunately, these reckless cost-cutting measures can, and often do, lead to higher injury rates among those who were able to avoid being fired or laid off.

The Offshore Injury Lawyers at Zehl & Associates focus on representing injured offshore workers under the Jones Act and maritime laws. In the past 5 years alone, our maritime lawyers have recovered over $1 Billion in verdicts and settlement on behalf of clients throughout Texas, Louisiana and the rest of the Gulf Coast.

Contact the Undefeated Houston Offshore Injury Lawyers from Zehl & Associates Injury & Accident Lawyers for Help Today

For more information, please contact our Undefeated offshore injury attorneys in Texas at Zehl & Associates Injury & Accident Lawyers to schedule a free consultation today.

We proudly serve Harris County, Midland County, and throughout the state of Texas:

Zehl & Associates Injury & Accident Lawyers – Houston
2700 Post Oak Blvd #1000, Houston, TX 77056
(888) 603-3636
Open 24 hours

Zehl & Associates Injury & Accident Lawyers – Midland
306 W Wall St Suite 701, Midland, TX 79701
(432) 220-0000
Open 24 hours

For more information on what you can do to protect yourself from being injured offshore, call our maritime attorneys at 1-888-603-3636 or fill out our contact form by clicking here.