One analyst dubbed it “OPEC-aggedon.” Another a crash of historic proportions. Others: disaster; and, low-cost producer deathmatch. A Raymond James March 9 report summed it up: “When it rains, it pours.”

The U.S. oil and gas sector was already struggling through a protracted capital starvation period and tepid commodity prices, but black swan events cannot be predicted, only responded to. When the three-year Saudi Arabia-Russia production-cut marriage ended acrimoniously on March 6, with each not only disagreeing on new cuts, but threatening to ramp up production to spite the other, the oil and gas world as we know it ended. For now.

The WTI price plummeted to near $30/ bbl. That’s a drop from $45 the week before the OPEC-plus-Russia meeting and as high as $63 in January. The last time we saw oil prices this low was in February 2016, at $26. Here we go again.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access