Prairie Public NewsRoom
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Inside Energy: How some oil workers are affected by the slowdown

With oil hovering around $45 a barrel these days, oil workers can go from making a six figures to nothing, overnight. When they’re working, a 60 thousand dollar truck, for example, might be a reasonable purchase and maybe even a business expense. But the oil industry isn’t like most businesses. Our Inside Energy reporter Leigh Paterson looks at the challenges to budgeting in a boom and bust economy.

With oil prices in the tank...and business in the oilfields is tough

(AMBI bar sound)

“We laid off all except for Jordy for about a month and a half.”

That’s Justin Gamble. I met him at a bar in Gillette, a town in northeastern Wyoming.

(SOUNDBITE JUSTIN GAMBLE)

“And I’m a salesman for New Coda. Its an oilfield services and rental company”

Now Jordy- the one who didn’t get laid off-

(SOUNDBITE JORDAN COUCH)

“Of course, I’m indispensable haha.”

His name is Jordan Couch. He’s a twenty two year old cowboy and now a supervisor at New Coda. The company actually didn’t have work for him for a while, but it was easy to keep him around because he had his own housing. But, he wasn’t getting paid.

(SOUNDBITE JORDAN COUCH)

“I had like maybe three grand saved up.

That was gone in just a few weeks.

(SOUNDBITE JORDAN COUCH)

Truck payment $1000 a month, rent payment $1000 a month

By the time work picked up,  Couch says he was already behind on truck payments and was almost evicted from his apartment. And THAT is where Couch’s boss, Justin Gamble, steps in as a sort of financial advisor.

(SOUNDBITE JUSTIN)

They blow every penny they get. They make more money than they’ve ever made before.  I tell them all the time. They need to save their money.

Gamble has been through downturns in the energy and steel-making industries as well as a divorce and now child support. He knows that the money doesn’t always last.

(SOUNDBITE JUSTIN)

“Yeah, they learn the hard way// Nothing is secure. Unless you’re making toilet paper I guess.”

(fade out bar ambi)

According to the Bureau of Labor Statistics, the US has lost around 5,000 oil and gas jobs over the past year. But the debt that often follows? It hasn’t shown up in bank’s balance sheets quite yet.

(SOUNDBITE CURT THELEN)

The typical ones on here are certainly your unsecured credit cards, your signature loans, your new vehicles  (FADE OUT)

Curt Thelen, CEO of Campco Federal Credit Union in Gillette, walks me through his most recent loan loss sheet. His records don’t show any big losses, yet.

(SOUNDBITE CURT THELEN)

“Its been more of just the last 60 days that we have really started to see a real change.”

A change in the number of people coming in because they can’t make their payments. And in the number of vehicles being turned over to Campco - that’s more than doubled.

(SOUDBITE CURT THELEN)

“We know we’ve only hit the tip of the iceberg so its gonna be a matter of how low will these prices go and how long will they go.”

In the past, low oil prices for long periods of time have hit oil towns hard.  Mark Zabak knows this first hand.  He’s a banker who moved to Wyoming in 1982, just a few years before the last oil bust. 

(MARK ZABACK)

You had people leaving town and it happened almost overnight. Just almost overnight.

In 1985, personal and business bankruptcy filings in the state were nearly triple what they were in 1980.  And several local banks shut their doors.

(MARK ZABACK)

I remember having customers who were robbing their kids savings accounts to make the payroll tax for their company back then

The layoffs, debt, battered local economies-  Zaback, like many others, is seeing warning signs that it’s starting to happening all over again. And for workers,  a lot of it comes down to this….

(MARK ZABACK)

“The lack of financial literacy. We see it every day.”

“You have young people coming out of high school or college and all of the sudden they’re getting a six figure check.”

Most workers don’t come to the oil patch with money management skills

And the banks. Well, encouraging lending is part of the business plan.

[Most people don't learn about money management in high school and parents aren't always aware or around. And the banks. Well, encouraging lending is part of the business plan.]

(AMBI walking out of the bar)

Back at the bar we go outside. That truck- Jordan Couch still has it

(ambi truck starts)

And he’s keeping it

(SOUNDBITE JORDAN COUCH)

“Oh, 100%. Even if I go back to cowboying, I’m still making $1000 a month. I can make the payment. haha. Who eats right?”

Ah, the wisdom of youth, especially in a boom. 

(ambi door slam)

Sometimes the love of a truck trumps any attempt at money management [financial planning]….

Email: lpaterson@insideenergy.org; leighpaterson@rmpbs.org
Related Content