Coronavirus (COVID-19) Discussion Thread

[Bofferbrauer2]

Mummelmann said:

vivster said:

Isn't it just the oil companies that are fucked?

Back home (in Norway), the effect of this would be much more severe since oil and gas companies are more or less state-owned and the industry makes up about 35% of the total GDP. The state would essentially tank (pun intended). In a market where the interest and ownership are largely private though, the consequences are much less dire. So, yeah, I think and hope you're right. The oil industry has extremely high profitability and productivity rate per capita and employee, so the actual number of layoffs would be much smaller than if another sector or industry was hit as hard.

You can stay calm for now, as the Brent from the North Sea is still traded at $25 per barrel. The OPEC variants are also all still above $10 per barrel, Canadian crudes above $8. It's just the WTI and other American crudes that have crashed down below 0 - but that's all of them without any exception.

Last edited by Bofferbrauer2 - on 20 April 2020