44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

URGING THE LABOR DEPARTMENT, THE HUMAN SERVICES DEPARTMENT, THE DEPARTMENT OF HEALTH AND THE ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT TO MAKE EVERY EFFORT TO MITIGATE THE DEVASTATING IMPACT OF LOW OIL PRICES ON NEW MEXICO'S OIL PRODUCTION AND SERVICING BUSINESSES AND THE WORKERS AND THEIR FAMILIES AFFECTED.

WHEREAS, the price of oil has plummeted more than fifty percent in the last two years, with posted prices of west Texas intermediate crude oil reaching lows of ten dollars ($10.00) per barrel in recent months, which is lower than in 1986 when oil prices last plunged, and this has had a devastating impact on businesses in the oil production and oil services business sector in New Mexico; and

WHEREAS, in the Permian basin in Lea, Eddy and Chaves counties, many oil and oil-related businesses have had to lay off hundreds of workers either temporarily or permanently and to provide only part-time or occasional employment for other workers because of the impact of low oil prices on their businesses;

WHEREAS, unemployment in southeastern New Mexico increased enormously in 1998, with Chaves county more than doubling its unemployment in that period and Lea county rising nearly eighty percent, illustrating the devastating impact in that area of the state resulting in great part from the low oil prices and the importance of the oil industry in that part of the state; and

WHEREAS, it is extremely important for the state agencies that provide support to displaced workers and their needy families to make a concerted effort to use all available programs to provide help to workers and their families in these extremely difficult circumstances;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the appropriate state agencies be urged to provide assistance to the oil production and servicing industry and its displaced workers and their families in New Mexico, who must absorb the devastating impacts from low oil prices as follows:

A. the labor department recognize the impact on workers in the oil industry and address the displacement of those workers by providing all necessary available support, staffing and retraining or other job program assistance to meet the crisis;

B. the human services department and the department of health do everything possible to alert staff to the problems in the oil industry in New Mexico resulting from workers losing jobs and families struggling without sufficient wages or health care coverage and to provide staff and information as necessary to enable those workers and their families to take advantage of all available health and social services programs; and

C. that the energy, minerals and natural resources department be as business-friendly as possible to oil and gas producers and their contractors working in New Mexico and make every effort under current law to encourage and support the production of the state's natural resources and put the state back in the business of expanding the labor force; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of labor, the secretary of human services, the secretary of health and the secretary of energy, minerals and natural resources.