All tweet, no action: Trump’s call for US oil and gas bailout fails to materialise

Only Subscribers can read the full Article

On 20 April 2020, West Texas Intermediate (WTI) crude oil traded negatively for the first time in history, falling to a record low of negative USD 37.63/barrel, as US oil producers, faced with brimming crude storage on the back of declining demand due to Covid-19, were left with no option but to pay buyers for volumes they could not store.

On 21 April, US President Donald Trump announced plans – via Twitter – to bail out the US oil and gas industry, but two months later, talk of a federal bailout for struggling producers has yet to materialise. A bailout for the oil and gas industry would not only be politically controversial, industry commentators explain, but also propagate inefficiencies within the sector. Instead, the crisis US oil and gas currently faces ought to be treated as an opportunity to address these inefficiencies and, rather than a bailout, is more likely to lead to consolidation within the segment.

As far as struggling ‘second wave’ US LNG projects are concerned, there is very little the Trump administration can do to support them in their quest for final investment decision (FID), say LNG industry experts. For greenfield projects that are dependent on third-party sales to reach FID and have limited cash resources to keep going, a bailout would only be kicking the can down the road.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.