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Increased Oil Dependence Expected to Rebalance Market

Installation for oil at night

The oil and gas business is one of the largest contributors to Louisiana’s economy. Thousands of Louisiana residents depend upon the offshore and onshore energy industry to make a living. However, the recent drop in oil prices, while helpful for anyone buying gas, has cost many Louisiana oil and gas workers their jobs.

U.S. Rig Count Continues to Decrease

According to the weekly report from Baker Hughes, the current United States rig count is the lowest that it’s been since 2010.  The report did not contain all bad news for Louisiana. While the total U.S. rig count dropped by 22 rigs, Louisiana actually had a 2 rig increase last month.

This modest increase is really just a slight glimmer of hope in an otherwise depressing situation for Louisiana oil and gas workers.

Analysis Expect Demand to Rebalance Oil Prices

Despite the dire outlook that some have on oil prices, some are optimistic that the oil economy will bounce back, perhaps as soon as early 2016.  Worldwide oil demand is predicted to continue to increase in 2015 and should be up by 1.5 million barrels per day. This may not seem like a huge increase, but when coupled with the decrease in output from the reduction in oil and gas production, may be enough to stabilize the energy economy.

The estimates for increased production are certainly consistent with data from previous years. Indeed, in 11 of the past 20 years global demand has increased by more than a million barrels per year. There are a number of factors that are expected to lead to this increase, such as vehicle travel, air travel, and shipping.

What Does This Mean for Louisiana Oil and Gas Workers?

It is not just rig and platform workers who are affected by the energy downturn. Offshore construction workers, transportation workers, and oilfield service company employees have all been equally harmed. A more stable energy economy will translate into more jobs, and more importantly, more job stability for these workers.

It is true that not everybody in the oil business has been affected by the downturn, but for those that have, these new projections can give them hope that their situations will improve sooner rather than later.

Louisiana Offshore Injury Lawyer

The Mahone Firm understands the needs of Louisiana oil and gas workers. If you’ve been injured while working offshore, call (504) 564-7342 today for a free and confidential case evaluation with an accident lawyer. Don’t delay in getting the help you need.

Mike Mahone

Mike Mahone

Mike Mahone is a personal injury and business litigation lawyer located in New Orleans, LA, and the sole practitioner of The Mahone Firm.

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