PORT FOURCHON, La. — In an effort to cut spending because of low oil prices, oilfield companies are asking the Greater Lafourche Port Commission to lower their rental rates.
U.S. benchmark crude oil closed Friday at $51.21 a barrel, down nearly 60 percent from its high of about $115 a barrel in June.
If prices remain stagnant, large operators and oil companies have asked for price concessions from both workforce and service industries. As a result, Chett Chiasson, director at Port Fourchon tells The Courier those service companies are doing the same, including asking for reduced rental rates.
Port Commission Secretary Chucky Cheramie says the board would evaluate any cuts being made at the company, such as jobs or spending, before pitching lower lease rates.
Information from: The Courier, http://www.houmatoday.com
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