The Seattle Times, Marathon Petroleum discussed on America's Truckin' Network

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The scary stories like this from The Seattle Times workers at marathon petroleum refinery in Gallup New Mexico are turning off the valves oil companies in West Texas are paid early termination fees to contract employers employees rather than drill new wells in Montana producers are shutting down wells and slashing the salaries and benefits just a few months ago the U. S. oil industry was triumphant in our quest for energy independence having turned the United States into the world's biggest petroleum producer for the first time in decades but that has suddenly given way to despair as the coronavirus his knee cap the economy destroying demand for gas diesel Jeff will as cars sit parked in the driveways and planes are consigned to remote fields and runways yes the oil industry has lived through many booms and busts but never before have prices collapsed as they have this week what we talked about Monday price falling below zero meaning some traders had up Hey others to actually take the crude off their hands Ben shepherd is the president of the Permian basin petroleum association he said it is a living nightmare well I guess they represent companies in the area of Texas in New Mexico that had become the world's most productive oil field last year in Midland Texas the epicenter of the shale boom over the last decade parking lots of companies like chevron diamondback in Apache are pretty much empty aside from a scattering of pumping trucks executives working from home huddling with their colleagues in board members trying to decide how quickly to shut down production and lay off workers oil giants like Exxon Mobil have slashed their twenty twenty exploration as well as production budgets by nearly a third and that was actually before the total price collapse earlier this week many smaller companies are expected to seek bankruptcy protection in the coming weeks having spent years borrowing billions of dollars to extract and move crude now these are kind of disturbing numbers production companies have eighty six billion dollars in debt coming due between this year and twenty twenty four pipeline companies have an additional one hundred twenty three billion dollars they have to repay or refinance over that same period according to moody's investors service we're concerned that the disorderly market right now has adversely damaged the industry in the short term the some form of government assistance is going to be needed because the price levels were currently transacting are unsustainable for U. S. producers now this is where he tries to explain why would you need government assistance the reverberations to other industries could be significant a decade or two ago low oil prices used to serve to bolster the economy by reducing energy costs but the oil industry has become so big now an important it directly or indirectly employs ten million people that's the problem that will be open at that's gonna blow all a whole bunch of different kinds of businesses manufacturers that build their equipment the steel companies that make their pipes the banks and hedge funds that lend their money so I get it it's this I guess they're trying to make it sound like it's a different bus the bus we've seen in the past are totally disagree with the latest it will be a good way eighty okay but you look at it with the signed by the only difference it will probably a bigger world player well we won't back all right I wonder how do you deal with directly or indirectly employing ten million people on I mean look at the numbers would I think in the numbers of it a whole lot lower yes several decades ago I don't know I do go back look at the number because that thanks to the Oklahoma Ellen lord wherever back in the eighties where we had that big bone hello sh thank falling out but the bottom fell out of it degree where yeah that one but critics were body had so many of the local dried up but they had parked out front of the boat well the barbecue but remember that it took a big hit alma almost on the market that desperate but.

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