OKLAHOMA CITY (AP) — Oklahoma City-based SandRidge Energy Inc. has announced the layoffs of 226 people at its Lariat Services Group subsidiary in northwestern Oklahoma.
The layoffs represent about 87 percent of Lariat Services' 260 workers in the Alva and Cherokee area.
SandRidge spokesman David Kimmel said the layoffs are "difficult, but necessary" because of "the unprecedented environment currently facing our entire industry." Kimmel said lower drilling budgets and well counts have made the market unsustainable for the services provided by Lariat. Lariat specializes in drilling, workover and completion rigs, location and road construction, and other oilfield related services.
SandRidge and many other oil companies have slashed drilling operations during the past year as oil prices have fallen to just above $30 a barrel, less than one-third of the price 18 months ago.