"Across the United States, companies are laying off workers, shutting down wells and preparing for a prolonged slump as oil prices tumble."
"HOUSTON — Workers at Marathon Petroleum’s refinery in Gallup, N.M., are turning off the valves. Oil companies in West Texas are paying early termination fees to contract employees rather than drill new wells. And in Montana, producers are shutting down wells and slashing salaries and benefits.
Just a few months ago, the American oil industry was triumphant in its quest for energy independence, having turned the United States into the world’s biggest petroleum producer for the first time in decades. But that exhilaration has given way to despair as the coronavirus has kneecapped the economy, destroying demand for gasoline, diesel and jet fuel as cars sit parked in driveways and planes are consigned to remote fields and runways.
The oil industry has lived through many booms and busts, but never before have prices collapsed as they have this week. On Monday, one closely watched price fell below zero, meaning some traders had to pay others to take crude oil off their hands. That price — for May delivery — recovered on Tuesday, but not nearly to levels where oil companies can make a profit. At the same time, the price of oil for June delivery fell by about half to roughly $10 a barrel."
Clifford Krauss reports for the New York Times April 21, 2020.
SEE ALSO:
"Head-Scratching At The White House As Oil Crash Continues" (Energywire)
"Trump Calls For U.S. Oil Industry Bailout As Prices Plunge" (Reuters)
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