COVID Market Update

For oil suffering under a pandemic, it’s been another week of layoffs and bankruptcies …

– Sable Permian Resources LLC was the first shale patch bankruptcy of the week. In the early part of the week, bankrupt Sable agreed to sell itself to a group of lenders led by JPMorgan. The price tag? Its current outstanding debt.

– Equinor and Exxon are the latest oil majors to make job cuts. Norway-based Equinor is cutting one-third of its workforce in its exploration unit to cut cuts. Exxon will be cutting 1600 jobs in Europe by the end of next year–which is about 10% of its total European workforce. This is not Exxon’s first tranche of job cuts either. It has already shed jobs in Australia and the United States. Speaking of the United States, Deloitte is predicting that of the 107,000 oil and gas jobs that have been lost in the United States so far this year, 70% of them will not be recovered if oil stays around $45 per barrel. In a worst-case scenario, should oil fall to $35 per barrel, only 3% of those lost jobs will be recovered. Of course, Texas will be the hardest hit of all the states.

– First, it was U.S.-based renewables major NextEra Energy overtaking Exxon as America’s most valuable energy company. Now, the same is happening in Canada. Canadian Natural Resources has overtaken Suncor as Canada’s most valuable energy company as investors move to dump oil and favor companies with larger natural gas…

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Via Oilprice.com