Health

Mental Health Issues in Oil Industry Cost $200 Billion Annually

The financial losses come from reduced productivity, high employee turnover, or the loss of skilled labor as a direct result of unmanaged mental health challenges.

Oil and Gas Industry People
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Bruises, scrapes, even broken bones are visible signs of the risks of working in the oilpatch. Less visible, however, are the mental risks.

Accidents and injuries affect not only the well-being of employees but also a company’s financial health, Daniel Radabaugh, chief strategy officer at Xccelerated Construction Unlimited told members of the Permian Basin Service, Transmission and Exploration and Production (STEP) safety network at its monthly meeting. He estimated the costs to businesses to be about $200 billion annually.

The financial losses come from reduced productivity, high employee turnover or the loss of skilled labor as a direct result of unmanaged mental health challenges, he said. He told those in attendance that the oil and gas industry must develop a similar mindset in addressing mental health as it with addressing physical health in terms of prevention and support.

Radabaugh offered some stark statistics when it comes to mental health and the oil industry:

  • 19% of oil and gas workers experience psychological disorders.
  • One in five experience depression, anxiety, or substance abuse.
  • The suicide rate for oilfield service workers is 54.2 per 100,000 workers.
  • Nearly 15% of oil and gas workers report substance abuse problems, higher than the national workforce average.
  • 86% of workers said company culture should support mental health.

Read the full story here.