Panic over the collapse in oil prices reached the US Congress, where US lawmakers are desperate to persuade Riyadh to stop cutting energy costs.
Thus, representatives of the upper house of the US Congress wrote an appeal to the Crown Prince of Saudi Arabia, Mohammed Ibn Salman, with an appeal to stop the dumping of oil prices. The appeal was signed by Republican senators. They motivate their request with a threat of a weakening global economy, although for the United States the shale oil sector is much more important, which in the current conditions is becoming unprofitable.
As News Front previously reported, after a deal to reduce oil production fell through the OPEC framework, Saudi Arabia artificially lowered the prices of the extracted resource and offered it to the largest European buyers.
This decision dealt a serious blow to the American oil industry. In particular, the shale segment, which is known for the high cost of oil production, was threatened. Shares of US oil companies collapsed up to 50 percent. The US expert community did not rule out default.
The Hill, in turn, notes that the American oil industry must be stretched to victory over the coronavirus. Moreover, the US Energy Information Administration predicts a 50% increase in global energy consumption over the next thirty years. However, even with such encouraging prospects, the US shale sector will have to survive the disaster that will entail massive layoffs and a reduction in tax revenues to the US budget.