Yates Petroleum Corp. of Southeast New Mexico announced Wednesday that it has laid off about 10 percent of its workforce due to decreasing oil prices. The company has an operation in Artesia.
Connie Esquibel, the human resource director and plan administrator, said in an email that Yates Petroleum Corp. had to “implement extreme cost cutting measures” due to the “sharply falling oil prices.”
“About 10 percent of the workforce was reduced through layoffs and employee attrition,” Esquibel said in the email, “The layoffs affected our Artesia, Denver, Gillette, and Rock Springs operations.”
The 10 percent equals a total of 15 people in the Artesia, Roswell and Carlsbad area who are being laid off. Oil prices have been steadily decreasing since September 2014 and some experts believe that the lower oil prices will stay and continue to drop for a while.
As of Wednesday, the average price of crude oil per barrel was about $46 between West Texas Intermediate Crude Oil and Brent Crude Oil. Both grades are benchmarks for oil prices across the U.S.
Also according to AAA, the average price for a gallon of unleaded gas was $2.01 for the nation, and $1.90 for New Mexico, which is about a $1.20 difference from a year ago for the state.
Wally Drangmeister, New Mexico Oil and Gas Association vice president and director of communications, said that oil production is a lot higher than the current worldwide demand.
“The decision to eliminate jobs is a very difficult one,” Esquibel said. “We believe these job eliminations are crucial to our ability to adjust the company’s cost structure so that we have the resources to achieve our goals of exploration, production, profitability, and strategic planning.”
This article was written by Sarah Matott from Carlsbad Current-Argus, N.M. and was legally licensed through the NewsCred publisher network.