After being in business for about 60 years, a family-run oilfield construction company in Sweetwater is closing.
T&R Oilfield Construction Co. Inc. has stopped taking orders, laying off around 15 employees, owner Ronnie Rainey confirms.
Rainey told KTAB/KRBC Monday that the decision to close was due to “economic conditions” related to the oil industry.
Another issue facing the third-generation family business, Rainey says, is that there is no one in the next generation ready to take over the company.
Crude oil prices fell below $27 per barrel last week, which is the lowest price seen in more than ten years.
Crude oil futures are falling by about 3%, which is being blamed on Saudi Arabia’s state-run oil company, Saudi Aramco, CNN reports.
The drop in prices typically leads to employment losses in Texas, but a study by the Council on Foreign Relations finds that is not the case in states that have little oil production.
Still, the adverse effects nationwide are evident. The Dallas Fed reports that plunging oil prices are hurting manufacturers in Texas and across the nation.