BAKERSFIELD, CA.-You might be delighted about the recent plummet in gas prices, but that price cut has come at a major cost for some Kern county families in the form of layoffs or less work.
Crude oil prices have dropped 40 percent over the last 6 months and are now around $63 dollars a barrel, which is a five-year low. The price has rebounded slightly but it's still affecting families like the Warrens who rely on income from the oil industry, especially for the holidays.
No work in November and now December means some things will be missing this Christmas for the Warren's three-year-old son Bryson.
Oil industry insiders say the layoffs seem to be a result of increased oil supply.
WSPA is a trade association that represents oil companies in California. It says high production is happening across the seas as well.
Chevron released this statement: "Chevron takes a long-term view of prices, because our investments last for decades. We continue to believe global demand for oil and natural gas will grow, while existing supply will inevitably decline."
In the meantime some oil companies will spend less extracting oil by closing rigs. Kenny's company closed three.
Kenny is looking for other jobs and so is Ashley who is a stay at home mom. Both say they are thankful for what they do have this holiday.
In a December 5th report Morgan Stanley said oil prices could fall as low as $43 dollars a barrel next year.
Crude oil prices have dropped 40 percent over the last 6 months and are now around $63 dollars a barrel, which is a five-year low. The price has rebounded slightly but it's still affecting families like the Warrens who rely on income from the oil industry, especially for the holidays.
"It sucks that you're not be able to provide a good Christmas for your family," said Kenny Warren.
No work in November and now December means some things will be missing this Christmas for the Warren's three-year-old son Bryson.
"We have a stocking out, we can't afford a tree. My grandma gave us some money so we were able to buy him two Christmas presents," said Ashley Warren, Kenny's wife. "Our son has autism and one of his challenges was that he was speech delayed so he's been going and getting help at a school a special school for autistic kids...he talks a lot now and we were really looking forward to seeing Christmas through his eyes."
Oil industry insiders say the layoffs seem to be a result of increased oil supply.
"What that really is a result of is increased domestic production," said Nick Ortiz, Manager of Production Regions at the Western States Petroleum Association. "The United States is on track basically to produce very near to the all time peak of us oil production in the 80s."
WSPA is a trade association that represents oil companies in California. It says high production is happening across the seas as well.
"What we've seen on the worldwide stage is certain countries who have state-controlled or state-sponsored petroleum production companies, they are not reducing production. They are trying to keep market share. Therefore we have this large worldwide supply of natural gas and crude oil," said Ortiz.
Chevron released this statement: "Chevron takes a long-term view of prices, because our investments last for decades. We continue to believe global demand for oil and natural gas will grow, while existing supply will inevitably decline."
In the meantime some oil companies will spend less extracting oil by closing rigs. Kenny's company closed three.
"It's kind of horrible to not have any money. Not just for Christmas but to feed my family, to pay my bills," said Kenny.
Kenny is looking for other jobs and so is Ashley who is a stay at home mom. Both say they are thankful for what they do have this holiday.
"Number one we're thankful for God...we're thankful we still have our health. Our son is healthy. We're happy," said Ashley.
In a December 5th report Morgan Stanley said oil prices could fall as low as $43 dollars a barrel next year.