COVID-19 continues to spread across the world, shuttering businesses, halting travel, and leaving many Americans anxious and uncertain for the future. The global economy has been all but completely stalled, and one of the immediate effects is a hard blow being dealt to the oil industry. Combined with the destruction of the infamous, on-going Oil Price War, what three major impacts can we expect to see on the oil industry?
E&E News reports that the oil companies have already spoken about extreme budget cuts ahead, with an average capital expenditure cut of 26% across the industry. This will include drastic reductions in production.
Secondly, Americans can expect intense layoffs and job losses, reports E&E News. These layoffs will start with drilling rig contractors and oil field service companies first.
Lastly, the oil industry is facing concerns of spreading the virus to other communities where it operates. According to E&E News, oil companies are telling employees in Alaska’s North Slope to stay in place in an attempt to avoid transmission to the neighboring rural and Native communities.
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