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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGood read on the status of the Texas oil industry...
Texas oil industry faces prospect of collapse amid Covid-19 lossesOil and gas producers are trying to reopen after a devastating halt, but pessimism about an economic recovery is widespread
Larry Madowo in Dallas @LarryMadowo
The Guardian World News
Fri 26 Jun 2020 09.00 BST
Link: https://www.theguardian.com/us-news/2020/jun/26/texas-oil-industry-layoffs-shutdown-economy
Excerpts:
New coronavirus cases are increasing to record numbers and the state has paused its reopening plans. But the oil and gas industry cannot afford another shutdown as it smarts from one of its worst years in decades.
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Rig counts, which are potential proxy for oilfield activity, fell starting around January 2019 leading to overcapacity, and lower prices, says Kunal Patel, a business economist with the Federal Reserve Bank of Dallas. In the second quarter of 2020, business activity in the sector hit its lowest level since the Dallas Fed started its survey four years ago.
Theres a lot of stress in the industry, says Patel. Theres been a major pullback in drilling and completing wells. The outlook of the 168 energy firms in Texas, northern Louisiana and southern New Mexico collated in the Dallas Feds Energy Survey has improved but is still negative. Output has fallen for both oil and natural gas and the employment index is significantly down as firms continue to cut headcount. We reached the bottom, and now were trying to climb up. It will be quite a while to get back up the hole to the pre-Covid level of activity and service pricing, one insider says in the survey.
KY.........
duforsure
(11,882 posts)Its not going to be soon before this economy rebounds , likely many years, with this oil sector, and we will see major cuts soon because of it. Refinery's will have to reduce workers with portions of their plants shut down completely, and the other area's will not be profitable for some time with the glut they now have. The virus situation is worse because of mismanagement from trump and others , and they continue doing things prolonging this international health crisis here in the USA now. trumps failed policies are costing oil companies huge amounts of money, and they are well aware of this.
KY_EnviroGuy
(14,483 posts)What perhaps should worry us most is a possible banking system collapse brought on by a major industry collapse such as oil. Others like the auto industry could be close behind.
Also concerning is the fact that several other large nations such as Russia and Brazil are also not effectively controlling the pandemic (which eventually spreads to other countries) and many are not accurately reporting cases and deaths.
KY..........
duforsure
(11,882 posts)The banking problems are coming too, and the markets collapsing from it will be here eventually after artificially propping them up with our money fails for them. I expect trump will intentionally do things to hurt the markets if he loses, which he will, he'll intentionally hurt us all for revenge, claiming its from his being rejected.