The sharp drop in oil prices is due to a number of reasons, could hurt the oil industry US and to make the extraction of “black gold” is disadvantageous.
The US Federal government by all possible means will support us oil and gas industry, which has suffered from falling oil prices. If necessary, it will put new duties on imported oil, said the President of the United States Donald trump on Saturday evening, April 4.
Now in the U.S. at stake are thousands of jobs in one of the most important branches of the industry, pointed out the trump. “I’m a big fan of our big energy business,” he said, promising to do “whatever it takes”. 3 APR trump held a White house meeting with leaders of major American energy companies. In it, he stated that he would support their “1,000 percent.”
Falling prices will make the oil production in the US unprofitable
Recently, the price of oil fell sharply. The reasons for the fall was, as the conflict over oil production between Russia and Saudi Arabia, and the decline in demand for “black gold” because of the pandemic coronavirus.
According to the Energy information administration, an independent us Agency that is part of the Department of energy, USA 2009 gas production is second only to Russia, APO oil production came in first place. Fuel independence is for a country of strategic importance.
Oil and gas boom in U.S. business must, above all, practiced by many American companies in oil extraction method of fracking (hydraulic fracturing). However, this method is relatively expensive and the low oil prices make it unprofitable. Given that most U.S. oil companies independent of the state, in the case of economic losses, they can cut production.