Not everything from an interview makes it into a news story, nor should it, but sometimes a reporter can’t shake the words and mental images from his head. That’s what happened after I interviewed energy industry restructuring expert Drew McManigle about the unprecedented crisis the oil and gas industry is facing.
The coronavirus pandemic has set off an unprecedented decline in oil demand, setting off a chain reaction that is threatening to bring much of the world oil sector to collapse.
As stay-at-home orders go out around the globe in a bid to slow the virus’s spread, gasoline stations are left with few if any customers, jet planes sit idle on runways and truckers watch their routes cut. In response, refineries, like those that line the Texas Gulf Coast, are slashing their output, which means the crude oil they would have turned into fuel is going into storage tanks.
Bankruptcy attorneys and restructuring experts are quickly becoming the most popular people in the oil patch. Energy companies are lining up to seek survival advice as oil prices linger around $20 per barrel and the coronavirus pandemic ravages the economy.