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Low Oil Prices Causing Serious Problems for Offshore Drilling Companies, Job Cuts Imminent

Maritime Injury Lawyer - Oil Prices Drop

As you have no doubt noticed from paying at the pump recently, gas prices are the cheapest they have been in very a long time. In fact, the price of oil has plummeted to its lowest point in 5 years–resting just above $50 per barrel heading into the New Year. While cheap gas prices may appear to be a good thing to the average consumer, those who make their living working in the oil and gas industry understand that trouble is on the horizon.

When oil prices drop significantly, companies stop drilling, rigs are idled and offshore workers are laid off. While estimates vary, as many as 250,000 American jobs could be in jeopardy if oil prices remain low. Unfortunately, job cuts are not always enough for some companies when it comes to protecting profits during difficult times.

Some drillers will even resort to taking dangerous shortcuts in order to produce more product at a lower cost, potentially putting your life and the lives of your co-workers in danger. As a result, we could see a sharp rise in the occurrence of on-the-job injuries. That’s why it is more important than ever that you not be afraid to use your stop-work authority any time you feel that something is unsafe.

As for the current financial status of offshore producers, investors are closely watching several Houston-based companies like Transocean, Noble, Ensco and Diamond as their stock prices continue to drop. If prices fail to recover in the near future, it appears that it will just be a matter of time before oil company executives begin firing their offshore workers in order to protect themselves and their shareholders.