Treasury Secretary Steven Mnuchin said he is considering a government lending program for U.S. oil companies looking for federal aid as they cope with a devastating plunge in prices, Bloomberg News reported on April 23.
Oil prices have crashed as demand has shrunk due to lockdowns during the coronavirus pandemic.
“One of the components we’re looking at is providing a lending facility for the industry. We’re looking at a lot of different options, and we have not made any conclusions,” Mnuchin told Bloomberg News in an interview.
U.S. crude oil futures collapsed to trade in negative territory for the first time in history on April 20, as desperate traders paid to get rid of barrels amid a dearth of storage space.
Last week, Energy Secretary Dan Brouillette told Reuters he was working with Mnuchin to roughly double the size-limit on loans available to mid-tier U.S. energy companies under the recently passed CARES Act stimulus package to $200 million–$250 million.
Crashing oil prices have prompted shale companies to slash spending and halt drilling activity.
President Donald Trump said on April 21 he asked his cabinet to devise a plan to inject cash into the ailing U.S. oil-drilling industry.
2023-07-31 - The UK is committing to future North Sea licenses and announced new support for two CCS clusters.
2023-07-19 - New IEA report depicts the U.S. boosting production and Europe’s high sensitivity to Russia’s gas supply.
2023-07-25 - Gas production from Argentina’s Neuquén Province, home to the Vaca Muerta shale formation, reached 91.03 MMcm/d or about 3.21 Bcf/d in June of 2023, nearly surpassing a record high set last winter.
2023-09-14 - The Manatee field is part of the cross-border Loran-Manatee discovery, shared by Trinidad and Venezuela.
2023-09-05 - Tamboran Resources’ Shenandoah South 1H well in northern Australia’s Beetaloo Basin is expected to be completed this fall.