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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Gary Burton who wrote (36967)	2/6/1999 4:30:00 PM
From: Crimson Ghost	Read Replies (2) \| Respond to of 95453

Looks like $14 is the magic number Low prices jeopardize oil jobs Group says losses will continue if prices stay below $14 a barrel. The Fresno Bee The U.S. oil industry stands to lose more than 17,000 jobs by summer if oil prices don't rise above $14 a barrel over the next six months, an industry group reported. About 24,415 jobs have been lost since the price decline began in November 1997, said the Independent Petroleum Association of America, an industry group based in Washington that represents small and midsized oil producers. Producers also are shutting down wells that can't be operated profitably, the group said, which could mean oil shortages later. More than half the oil and natural gas wells pumping in the 48 U.S. states, excluding Alaska and Hawaii, could be shut down within six months. "These numbers are significant not only in terms of economic impact and employment, but also because once these wells are abandoned, access to the resource base tapped by these wells is gone forever," said Gil Thurm, president of the group. Oil prices on the New York Mercantile Exchange are at $12.02 a barrel, 43% less than on Oct. 31, 1997. Companies such as [ Texaco Inc. ] and [ Atlantic Richfield Co. ] have cut thousands of jobs to lower costs as oil prices fell to the lowest levels since the Great Depression. The federal government and 33 oil and natural-gas producing states have lost a total of $1.8 billion in royalties and severance taxes, Thurm's group said. (Copyright 1999) _____via IntellX_____ Publication Date: February 05, 1999 Powered by NewsReal's IndustryWatch ...back to top