We may be enjoying cheaper fuel, but oil-related workers are paying the price.
Some companies in Saskatchewan are issuing layoff notices as oil prices continue to plunge.
The Doepker dealership in Moose Jaw laid off 18 full-time employees Thursday, blaming the low oil prices and its uncertain future.
A spokesperson at the dealership said it’s something they were considering for a few weeks, and finally had to make the tough call.
The business is closely tied to the oil sector, but if prices rebound, they hope to hire the workers back.
It’s a story Global News has been hearing from multiple companies.
We spoke with 20-year-old Chad Blackhurst earlier this month after he was laid off by a southeast Saskatchewan oil company at the beginning of January.
“There’s a lot of guys who don’t prepare for this, and don’t put money aside in case of this happening,” said Blackhurst, who’s living on a relative’s couch in Regina. “There’s lots of guys loosing their trucks, homes, sleds stuff like that.”
He came to Regina looking for work, and that’s a troubling trend for small communities that depend on the industry.
“The unfortunate part with the oil industry is there tends to be a fairly high volume of employees in there, and we don’t necessarily have other industries that can back fill that or pick that up,” said Weyburn R.M. Reeve Carmen Stearling.
While municipalities aren’t pressing the panic button yet, they are keeping a close eye as activity such as drilling and new developments slows.
“It’s been good for the community. But, if those people become unemployed, how long are they going to stay in Radville before they search for something else and move on?” asks Laurier R.M. Deputy Reeve, Allan Krausher.
Oil accounts for about 11 per cent of Saskatchewan’s tax revenue. With prices plunging, Premier Brad Wall has already warned of belt-tightening in the upcoming March budget.
2014 did see a 10 per cent increase in oil and gas jobs, but that’s changing fast.
There’s no clear indication of when prices will rebound, but GasBuddy.com co-founder Jason Toews predicts prices will rebound back to $1.20 by May.
Either way, Blackhurst says he won’t be returning to the oil field.
“How long is the oil going to stay up? When is it going to drop next? When am I going to be laid off next?,” he asked.
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