A couple of months ago I wrote a piece on my website about the five brutal facts that the US oil industry and energy makers must confront while planning for the post-coronavirus world. One of the most brutal facts was that the sector had struggled to make money over the last decade and at oil prices less than $50/bo offered little prospect of doing so in the future. I offered some options to move forward in a progressive way within the energy transition, a ”build back better” plan if you like, starting with a radical re-basing and cost optimization of the US upstream industry. I expected some companies, particularly those with the less attractive assets, to cut their losses and merge with equals, some to try to grind it out through cost-cutting and refinancing with the hope of higher prices in the rebound, and the rest to seek safe haven in Chapter 11 restructuring.
https://www.capriole-llc.com/news/2020/4/20/qt22aqcei7jqbyb7nnhci6xugx961v
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