Alexx Sanchez
asanch16@uwyo.edu
Due to the downturn in oil and gas, Wyoming is seeing a 30 percent decrease in industry jobs which could be concerning for the almost 600 students in the UW petroleum engineering department.
“Through third quarter of 2015 we show jobs losses of 4,100 or 13 percent in the industry of oil and gas drilling, as well as oil and gas field services. That was the most directly impacted there,” David Bullard, senior economist in research and planning for the Wyoming Department of Workforce Services, said.
The downturn is not only affecting oil and gas industry jobs, but other job markets as well.
“We’re actually seeing job losses in many different sectors, construction, professional and business services, wholesale trade,” Bullard said. “It is affecting many parts of the economy. Overall, total employment is down.”
The global market heavily influences the oil and gas industry.
John Robitaille, vice president of the Petroleum Association of Wyoming, said the cause of this slump is because OPEC countries, particularly Saudi Arabia, over-produced and flooded the market. With the market flooded the price of oil has been driven down to a point where it is uneconomical to produce in the U.S.
Downturns in the oil and gas market have happened in the past. One of the most memorable was the slump that occurred in the 1980s.
“I remember when it really busted in the 80s. I was living in Casper. We used to drive up and down the street and see businesses boarded up,” Robitaille said. “We saw large companies leave town. Buildings were vacant. People I was in school with moved.”
Robitaille compared the 80s slump to now; however, he said the decline happening now is not as serious. Although he noted if the oil market does not turn around soon the situation could get much worse.
Despite the fact it is not as bad as the 80s, students who want to go into the industry are still concerned about getting jobs when they graduate.
“There definitely have been some struggles. Two years ago, prices were high,” Quentin Ridinger, senior in petroleum engineering, said. “Everyone was getting jobs left and right; even finding summer jobs was really easy. It has definitely changed from that,”
Ridinger also said he does not plan to change his major. However, he knows many other classmates who have considered switching or waiting out the slump by attending graduate school.
Even with oil prices averaging about $30 a barrel, Ridinger remains optimistic. He said he believes if people work hard they can still find jobs in the industry.
Bullard said oil prices are projected to remain low through the end of this year and into the first half of 2017. Therefore, he does not believe the industry job market will make a comeback anytime soon.
