At least three frac sand mining plants have laid off workers in Wisconsin after a crash in oil and gas prices amid sharply reduced demand brought on by the COVID-19 pandemic, according to the Milwaukee Journal-Sentinel.
Smart Sand Inc., based in Eau Claire, said it will lay off 55 workers at a plant on U.S. Highway 12 in Tomah, Wis.
“We are hopeful that we will be able to recall these employees at a future date, but we cannot be certain that will occur,” the company said in a letter to state officials.
On April 23, Hi-Crush Inc., based in Houston, said it would permanently lay off 67 workers. A total of 35 jobs will be cut at a plant in Whitehall, Wis., and 32 at a plant in Taylor, Wis.
“The layoff is in response to unforeseen business circumstances related to the acute and precipitous downturn in oil and gas prices driven by the Saudi/Russia oil price war and the related impacts of COVID-19 on the demand for the company’s sand product,” Hi-Crush said in a letter to Wisconsin officials.
Hi-Crush did not indicate whether it would be forced to permanently close the facilities, but that is a possibility, according to the letter to the state.