Friday, March 25, 2016

A New Environment

The price of crude oil has recovered. Before you get all excited, let me say that that simply means it is no longer hovering at or below $30 a barrel. The bad news is that it seems to have found a ceiling of around $40. And, although its volatility seems to have settled a bit, it still has yet to level out. I stand by my prediction that it will take at least three years before things settle down. Unless there is some sort of apocalyptic event I also feel that the days of $100 a barrel (or more) oil are gone. The world of gate guarding is rapidly adapting to this new environment. I am very surprised that we have not seen more consolidation and bankruptcies with oil security businesses. Regardless, gate guards are feeling it as fewer and fewer gates are available and pay is starting to reflect the loss of demand. Twelve hour gates are paying $100 or less and 24 hour gates are trending downward. Gross pay for a 24 hour gate is actually lower because a lot of guards are sitting for longer periods between gate opportunities. How far are we from having security companies offering gates with hookups in exchange for your work? Sort of  like what we're seeing more and more in campground jobs. Scary, huh? It's past time to "batten down the hatches" in the gate guard business.

I leave you with this. Either Ted Cruz, Hillary Clinton or Donald Trump will be our next president. The ramifications of that on gate guarding should be a clarion call for all of us.

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