Oil Industry in Hobbs Still Seeing Layoffs Despite Rising Oil Prices

Staff Report
The Associated Press

HOBBS, N.M. (AP) - Oil industry executives say it will take more than $60 per barrel to get oilfields jumping again.

As oil tipped the $60 a barrel mark last week, some movement has begun, but layoffs and cutbacks continue in southern New Mexico.

Lucky Services Incorporated owner Dwayne Taylor says for the first time in months all his trucks are busy.

But Alonzo Aranda, chairman of the Hobbs chapter of the Association of Energy Service Companies, says oil industry businesses are still laying off workers.

Oil company executives agree that oil in the $70 to $75 per barrel range is needed to revive the industry in today's current economic conditions.

They say the lack of credit capital, unstable oil prices and high service costs are all factors holding back the industry.