The USA oil companies are in trouble.

(written by lawrence krubner, however indented passages are often quotes). You can contact lawrence at:, or follow me on Twitter.

The winner in this price war is Saudi Arabia

American fracking companies saddled themselves with massive debt that set up the house of cards and major energy companies have seen their stocks fail to keep pace with other large industries. That’s led companies and CEOs to lash out in increasingly desperate ways and turn toward plastic as a way to keep juicing demand. This isn’t to say oil companies still don’t have massive amounts of political power or money at hand. But that power was starting to erode, and the coronavirus has been like a tidal wave speeding that process along. While some governments (cough, cough, Trump) are doing their damnedest to keep the industry afloat, society may have different plans. So does the climate.

Therein lies the biggest issue for the industry. Demand drop isn’t going away, and the government making it rain while wearing a blindfold is not going to change that. That will lead to more chaos. Huge corporations hate uncertainty almost as much as they hate not making money. Uhl warned that the “relatively disorderly way in which all systems start to shut down is also going to affect us in ways that are very hard to predict.”

With that in mind, I’d like to once again offer up an increasingly popular solution that would provide some certainty. There’s no better time to nationalize the industry, bring production in line with demand, and begin setting it on that backward-slash trajectory needed for a habitable planet.