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NIOSH Programs > Oil and Gas Extraction > Economic Factors
Oil and Gas ExtractionInput: Economic FactorsActivity in the Oil and Gas Extraction Subsector is driven by multiple international factors. Oil prices have ranged from less than $15 to over $100 per barrel during the last decade. These fluctuations in prices are due to changes in supply as controlled by many private, national, and international organizations, as well as government stability and issues with refining and delivering petroleum products. High prices can increase the viability of small drilling companies and increase interest in maintaining existing wells.
Sources: Crude oil price – Energy Information Administration, Department of Energy; Rig Count – Baker Hughes Inc. (1993-2006 Sum of annual average for Active and Workover Rigs for the United States). Drilling activity can be measured by the number of wells actively being drilled and the number of workover rigs maintaining existing wells. Drilling activity is associated with the price of the commodity involved (Figure 1) and varies over time, having a direct effect on the industry. The United States is currently in a time of increased oil prices, which corresponds with an increase in the drilling activity occurring both on-land and off-shore. Improvements in technology can decrease the number of workers required to drill a well, but these improvements require capital investments in equipment. During 2004-2006 the number of workers in this industry grew 32%, from approximately 293,000 to 386,000 workers (Quarterly Census of Employment and Wages). Shortages of trained workers in this industry have led to several grants from the Department of Labor to specific oil and gas training facilities in the Western United States: Midland College in West Texas; San Juan College in Farmington, New Mexico; and the High Plains Technology Center in Woodward, Oklahoma. SourcesBaker-Hughes North American Rig Count Historical Crude Oil Prices, Energy Information Administration, Department of Energy Quarterly Census of Employment and Wages, BLS, Department of Labor Disclaimer: Mention of any company name or product does not constitute endorsement by the National Institute for Occupational Safety and Health for the content of these Web sites. Page last updated: May 14, 2008
Page last reviewed: April 28, 2008 Content Source: National Institute for Occupational Safety and Health (NIOSH) |
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NIOSH Program:Oil and Gas Extraction![]() |
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