Should The Oil Industry Get Bailed Out?

As we know, the price of oil in the U.S. fell below zero for the first time ever last week. This plunge literally meant that producers were paying buyers to take the oil off their hands. 

President Trump has made it clear that the federal government will rescue the struggling oil industry. And while this will enable the big fish such as Chevron Corporation CVX, Exxon Mobil Corporation XOM, and others to weather the storm, the fate of smaller producers is still far from guaranteed.

Over the past year, the energy sector has lost 46.2%. Fuel demand has plunged by as much as 30 million barrels per day, or 30%, as efforts to fight the spread of COVID-19 have grounded aircraft, reduced vehicle usage and pulled the global economy into a recession. But the biggest blow to the industry happened on March 6, when Saudi Arabia and Russia ended a four-year pact that curbed output. 

The plunge has already cost Texas at least $1 billion in revenue. Noble Energy Inc NBL, Halliburton Company HAL, Marathon Oil MRO and Occidental Petroleum Corporation OXY have all lost more than two-thirds of their value whereas Dow member Exxon is down 38%.

This will be a defining moment for the future of the fossil fuel and green energy industries. The Trump administration has expressed a willingness to pay oil companies to leave the oil in the ground. Shouldn't instead corporations that pollute be taxed higher? Shouldn't all that money go to funding more green energy and achieving zero-emissions?

A world where policies reward corporations for destroying this planet instead of those which actually think of our health and overall quality of life is not sustainable. We need to do better, and bailing out oil companies is the complete opposite of that. This is a unique opportunity we are given to disentangle our society from our own missteps and to protect our planet by letting the fossil fuels industry become history. Last Monday, oil was practically begging to be left in the ground – maybe we should just do that.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

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