The price of oil is hovering in the mid 20 dollars a barrel, prices not seen since the early 2000s.
The price collapse is hammering the industry, and Louisiana Oil and Gas Association President Gifford Briggs says this will have a direct effect on industry workers.
“The responses as far as the number of wells that will be shut in and the number of employees and percentage of staff that have the potential of being let go is very unsettling,” says Briggs.
Last night the price of oil dropped below 21 dollars a barrel, and Briggs says America’s oil sector cannot operate at sub 40 dollar a barrel prices for long.
“Those are prices that the majority of US energy producers just cannot sustain prices on,” says Briggs.
Briggs warns that even if the COVID crisis breaks in the next few weeks, American industry is still threatened by Russia and OPEC, who are purposefully overproducing to deflate prices.
“Basic supply and demand economics means that there is not a price rebound anywhere in the near future,” says Briggs.
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