Gas Industry in Tough Times
Friday, March 13th, 2009Gillette has long been nicknamed The Energy Capital of the Nation. However Gillette is seeing difficult times with many of its energy industries. The methane industry has been stumbling into many challenges. When you say Bird Stips you will probably hear a reply of groans, and in some cases, sobs. The sage grouse stipulations have hit again slowing drilling. However, low gas prices also loom over our local methane industry. Many companies have shut-in their fields pending a better gas price. We visited with Jason Kannegieter of Pump Sales and Services, and when asked if he could give us a positive note on methane he simply said No, we had to let some people go just yesterday [Monday 9, 2009], that is the first time in 12 years we have had to do that. Aaron Grossi an employee for Pump Sales and Services said It felt like, around February 1st someone just pulled the E-brake on the methane industry here in Gillette. How vast of an effect does this have on our economy? The answer is disheartening. Drilling companies slow drilling no longer needing their work hands. Pipelines are not being put in, ending the jobs of several more Workers and Welders. Production companies are shutting in fields, no longer needing some of their Pumper Hands; those production companies are also slowing the repair and replacement of broken and old pumps, eliminating the once high demand for Roustabout Workers and Pump Mechanics. This unfortunate undulation reaches many companies and continues well beyond our city limits. Countless companies have opted to cut overtime, in order to survive during this slow period. More specific data on rig comparisons in Wyoming based on the individual counties can be located here, Rig Comparisons. Although it is obvious that the number of rigs have gone down from 2008 to 2009 there is still drilling in progress. So what is it that keeps the methane industry from packing-up and going home? Hope. When asked about what the future holds for him, Mr. Grossi mentioned, Things are bound to come around for methane, people need to keep their houses warm in the winter and cool in the summer. Many companies are hoping that with less supply being pumped into the pipelines each day, demand will increase and drive prices up enough to make the effort more profitable. Their strategy may produce some result, as we have seen small rising in the natural gas pricing in our area, over the last couple of days. We also asked Mr. Kannegieter if he thought things might start turning around, he replied I am sure it will, but not for at least another 6 months. A Wyoming resource for those interested in more specific information is Wyoming Pipeline. Wyoming Pipeline offers a wide variety of information focusing on natural gas, pipelines, as well as coal, oil, power, nuclear, petrochemicals, and metals. You can also read a little on coal bed methane from the Wyoming State Geological Survey.
