U.S. Oil Industry In Trouble, But Production Unlikely To Plunge Anytime Soon
Ellen R. Wald, Ph.D | Apr 02, 2020 05:13AM ET
As expected, the news from U.S. oil producers is concerning. The former secretary of energy and former governor of Texas Rick Perry said on hiring advisors to restructure its debt.
We knew U.S. oil producers would struggle tremendously with low oil prices and should expect more bad news like this on a regular basis. But that doesn’t mean U.S. oil production will plunge immediately.
Last Time Price Plummeted.../h2
Look at what happened from 2014-2016, the last time U.S. producers faced a significant price drop. scheduled to meet with the heads of various large American energy companies including ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), Occidental (NYSE:OXY), Devon Energy (NYSE:DVN), Energy Transfer (NYSE:ET), Phillips 66 (NYSE:PSX) and Continental Resources (NYSE:CLR).
No one knows if any policy designed to buoy the U.S. energy industry will result from the meeting, but it’s important to remember that these are all large American companies and their interests are often contrary to the smaller oil producing companies facing financial distress now.
Ideally, the U.S. government would prefer high American production and low oil prices for refiners and consumers, but that’s not a possibility. Which means we'll have to wait and see what happens next.
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