Oilfield Injury Update
Oil & Gas Production is Rising
Oil and gas production in the Lone Star State is rapidly increasing. In fact, “Permian Basin oil production will exceed takeaway capacity by mid-2018 and likely result in heavy discounting of Permian crude until enough pipeline capacity is added to handle the soaring volume, analysts predict.”
Huge Growth in the Permian Basin
According to the International Energy Agency, the Permian Basin may produce 4 million barrels a day by 2023. The Permian Basin leads North American oil production and forces OPEC to maintain its production cuts. According to Rob Thumme, who manages energy assets for Tortoise Advisorsl, “If the Permian was part of OPEC, it would be the fourth-largest OPEC member, right behind Saudi Arabia, Iran and Iraq…By the end of the year, the Permian probably overtakes Iran.”
Difficulties Finding Qualified Oilfield Workers
Given this massive growth, companies are struggling to find talented oilfield workers to work in the Permian Basin. If you turn on your television or radio, you might come across an ad targeting oilfield workers. But companies are finding it difficult to convince qualified candidates to relocate to West Texas. In addition to the isolation, housing is expensive and in short supply, schools are crowded, understaffed, and performing poorly, healthcare is limited, and roads are crumbling.
According to some analysts, oilfield jobs in the Permian Basin start at around $100,000/year while an experienced truck driver can make $300,000/year.
You can Expect an Increase in Oilfield Injuries
The pace of severe injuries decreased sharply in 2016. This was in line with declining oil-field employment. With an increase in production and a need for more workers, potentially untrained hands, there is a higher liklihood for severe injuries to oilfield workers.
The oil and gas industry has one of the highest severe injury rates in the United States. By some measures, it has the highest. That said, the industry often publicizes data that minimizes this point by attempting to put forth self-serving information indicating the injury rate is far below the national average. However, you only need to look at the Occupational Safety and Health Administration statistics on severe injuries to see the industry’s high number of worker deaths.
If you Have Sustained an Oilfield Injury, Call the Attorneys at Morrow & Sheppard LLP
If you or someone you know has been hurt or killed as the result of an oilfield injury, do not hesitate to contact the attorneys at Morrow & Sheppard LLP. Feel free to stop by our offices for a face-to-face free and confidential consultation—we are located at 3701 Kirby Dr., Suite 1000, Houston, TX 77098. Otherwise, call us toll-free at 1-800-489-2216 or through our website.