Not surprised, once the virus subsides and if oil prices are still historically low, we will still have economic problems here in Texas because of the low oil price. Some of the boom and bust oil town in west Texas are going to be feeling it soon unless something changes.
The US was laughing when the low oil prices were destroying the economy of Russia and Venezuela. But when it's their turn... it's ow please don't hurt us.
Russia-Opec would be happy to cut production but, the caveat is that the US will have to cut production as well. The Shale industry was in crisis prior to Corona - Capital fleeing the sector - that sector was destroyed as a result of Corona and the Russia-Opec Shot - so we will be cutting production anyway - so this should be a fairly simple deal. Can't wait to see the headlines "Trump caves to Russians - A Pawn of Putin" - for doing what must be done - but it will be done. This will not save the Shale Oil Ponzi Scheme - but it will allow for a softer landing. The industry itself is finished - and in reality it has been finished for at least a few years. I mean really - 11 years at this and they have never made money - in 2018 - with higher oil prices that was to change - nope another horrible bloodletting - just less than previous years. 2019 was disaster - lower oil prices - capital fleeing - bonds of these companies dropping in value - bankruptcies. They need to stabilize the oil market - and do it soon.
What did Texas do when gas was under $1 per gallon? The oil companies will need to adapt and compete. It takes good management. Do they have it?
Texas will survive, but the economic contraction wont be good, especially in the boom and bust towns which will be in a bust.
I understand and agree. After 1/2 century of doing business I know that business is tough. That was my only point. I expect my business to take a downturn in short while. I'm adapting to it just like Texas oil companies have to do.
