Trump said he will save the US oil and gas industry
US President Donald Trump considers it necessary to implement a long-term plan to support the country's oil and gas companies. In the near future, given the price of WTI, they really need help.
“We will never fail the great American oil and gas industry. “I have instructed the Minister of Energy and the Minister of Finance to develop a plan that will make available means so that these very important companies and jobs are secured in the future for a long time,” Trump wrote on Twitter.
Currently, the price of June futures for WTI crude oil fluctuates around $ 20 per barrel. And this is completely insufficient. Earlier, the head of Pioneer Natural Resources, Scott Sheffield, said that such a price would still lead to massive bankruptcy of US oil companies.
“We need $ 30 per barrel to survive. 20 dollars will mean 80% of bankruptcies of companies, 250 thousand people will lose their jobs. Yes, with $ 30 the industry will be seriously damaged. But at least she will survive waiting for the end of the coronavirus and the restoration of demand by the end of 2020, “said Sheffield.
Branco Terzik, managing director of the Washington-based Berkeley Research Group and former member of the US Federal Energy Regulatory Commission (FERC), believes that the restoration of WTI oil prices will be possible only after the revival of the American economy.
“Oil was 50 cents per barrel in 1960, but it was never lower than one cent,” the expert told RIA Novosti. WTI is a regional story …. Why so cheap? Firstly, since there are restrictions on logistics, this is oil on land. It should be delivered to the pipeline. ”
“ Second, the storage facilities are likely to be full. And thirdly, the country does not work. There is simply no market for oil. Oil refineries don’t need it, for example, I didn’t use my car of the week, and before that I drove every day, ”Terzik added.
WTI prices will start to really rise very soon
“When will WTI prices return to growth? When the economy begins to grow. And we use all the oil that is already in storage. And only after that we can begin to download a new one. Now, keeping oil in storage means that you have to pay for its storage. First buy oil, then pay daily for it. Therefore, many now suffer losses and decide to get rid of it, “the expert continued.
Now the situation, in his opinion, will certainly lead to the closure of companies with high production costs and debt burden. “It is fortunate if 50% of US oil companies survive,” Terzik concluded. : ///
Record Trump announced that he would save the US oil and gas industry first appeared TEKNOBLOG .
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