The situation in the American energy sector is compared to the “bloodbath”.
US oil companies reap the disastrous fruits of the new Black Tuesday. Thus, Occidental Petroleum shares collapsed by 44%, EOG Resources dropped by 35%, and Continental Resources – by 40%. The situation for smaller companies is even more sad, as their shares collapsed by more than half.
“The oil shale segment of the United States is almost dead. A bloodbath. Billions of dollars have been washed out of the capital”, – comments Javier Blas, Bloomberg energy expert.
He also drew attention to the fact that even mastodons of oil production bear losses. In particular, the shares of British Petroleum decreased by 20% in just one day.
US President Donald Trump also commented on the situation, accusing Russia, Saudi Arabia and “fake news”. At the same time, he noted that the collapse of the market will provide consumers with cheap gasoline.
“What is happening now is a disaster for the oil shale segment, including the corporations Chesapeake Energy and Whiting Petroleum, which even before the collapse were trading at an extremely low level. Given that oil companies have burned hundreds of billions in ten years, oil shale production is beginning to cause disappointment among sponsors, leading to huge debts. It has been driven into a desperate situation”, – reports Bloomberg.
Pickering Energy Partners’ manager Dan Pickering complained that the oil shale industry “shot itself in the leg when it increased production.
Executive Director of “RS Energy Group” Jan Nyber is sure that what happened will lead to the fact that the whole segment will be reorganized.
As News Front reported earlier, this situation in the energy market was brought about by the collapse of the OPEC+ deal when Russia refused to further reduce its oil production.