Since the month of June, oil prices have been falling steadily, and since they started moving lower, they have fallen by over 50%. For this reason, states like Texas are getting ready for an oil bust with many shale oil producers halting work at their refineries. Oil companies have not only been seen laying off workers but decommissioning rigs as well. Several small firms into the business of leasing equipment have been unable to clear their dues because of the fall in oil prices and its subsequent impact in other sectors.
The city of Midland is preparing itself for rainy days
The prosperity in the state of Texas is clearly visible in the city of Midland. A population of only 108,000 in the year 2010, it grew to 140,000 with realty construction picking up pace to meet the growing demand. According to the Mayor of the city, Jerry Morales, real estate rates doubled over the course of five years. At the same time, the city is prepared for a oil bust and has about $39 million fund ready at hand. Steven H. Pruett, the head of Elevation Resources, an oil exploration and producer firm based in Midland echoed the same sentiment when he said, “We are responding to survive, so that we may once again thrive when we come out the other side,”
Workers believe that these bad times will not last
Workers, on the other hand, though scared of the inevitability of getting laid off, have appeared stoic about the issue. Many of them have said that they always have a backup plan, since getting laid off is no longer rare but a common thing during such economic time. Describing his feeling, a worker, Randy Perry said, “I feel like everything is going to be OK. This is not going to last forever.”