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When calculating the lost earning capacity of an injured oil worker, vocational experts and economists compare what the difference between what the worker could have earned over his or her work life before the injury, usually assuming the same job, and what the worker can earn after the injury
Pre-injury employment and earnings in the oil and gas industry need to account for cyclical volatility in worker earnings. RPC has an established model to adjust earnings, assuming a worker is projected to continue working in the oil and gas industry.
It is becoming increasingly questionable to assume certain jobs in the oil and gas industry will exist in the future in sufficient numbers to assume a worker in those jobs today could automatically continue for the balance of his or her work life. RPC has a new white paper analyzing the reasonableness of this assumption in an environment where oil prices plummet, more than half of the rigs in North America are idled, and companies are laying off workers and automating more oil and gas jobs every day.
View the Reasonable Assumptions About Future Employment in Oil and Gas Industries whitepaper here
This is one of two RPC white papers addressing lost earnings of worker in the oil and gas industries. To read the other paper, click here.