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Production Halted At Jay Oil Field; Employees Laid Off
January 23, 2009
Production has been suspended at the Jay Oil Field, and almost 30 employees have been laid off.
Quantum Resources of Denver, Colorado, laid off 29 employees and stopped production due to a large drop in oil prices and the recession. A company spokesperson says the company hopes to once again begin pumping oil if and when there is an improvement in the oil market.
At peak production about a year ago, there were 72 Quantum employees in Jay. In the meantime, Quantum officials say the company plans to work to decrease expenses like taxes and electricity and royalty payments in order to return the oil field to production.
The oil field was purchased from Exxon and ConocoPhillips in 2007 for about $200 million. When oil prices soared earlier this year, company officials were quoted as being pleased with their return on the investment, even though they sold 75 percent of their rights in a bet against falling prices. The Jay Oil Field’s first crude flowed back in 1970 and was estimated to contain 100 million barrels, making it one of the largest discoveries in the history of U.S.
Comments
2 Responses to “Production Halted At Jay Oil Field; Employees Laid Off”
how long do think a company can survive when it costs twice as much to produce a barrell of oil than you can sell it for? do your homework
Sad! Sad! Its bad when American Oil producers back themselves into a corner by being gluttens wanting to make big in the oil business and is now punishing the American people by simply stopping production. And we want to blane foreign Oil for our troubles! No we have Money hogs right here running American companies!!!!!! Not satisfied to make a resonable margine of profit but stops production until the People is stimmed by high prices through cause of supply and demand and the prices go UP! Then they start back up and make the Big bucks,,,,,,,,,,,,, Hold on friends and neighbors — Lets use our gas wisely and go only where and when have to. Make every trip count and help each other out when we are doing our driving. That way we will keep the prices low, The Big Dogs can’t last forever.