U.S. oil production and prices plummet amid COVID-19
Oil production in the U.S. is creeping back up, but these are still tough times in the oil industry. The coronavirus pandemic caused oil prices to plummet. And in addition to the economic challenges, several large pipeline projects that were well underway have been caught up in legal limbo.
After a time this spring when U.S roads were often car-free as a result of pandemic-related shutdowns, some traffic has returned. But many vehicles remain stuck in park, which means they're not consuming the gasoline they once did. A good portion of each barrel of crude goes to make gas, the drop in demand for which sent prices per barrel below zero in some cases several months ago. The coronavirus has hurt the economy as well as oil.
After bottoming out in June, U.S. oil production has begun to climb again. And prices are up too, though not at the level that operators will need to generate free cash flow and keep shareholders happy. Much depends on the pandemic.
What does this mean and where is the industry headed?
CGTN's Hendrik Sybrandy has the story from the state of Colorado.