Oil Companies on Tumbling Prices: ‘Disastrous, Devastating’

Oil Companies on Tumbling Prices: ‘Disastrous, Devastating’

The drop in use of gasoline and other fuels comes as Saudi Arabia and Russia increase production, sending oil prices to their lowest level in a generation.. And American oil companies are dropping rigs, dismissing fracking crews and beginning to shutter wells.. To make matters worse, Saudi Arabia and Russia are increasing oil production to regain market share from American oil companies that increased production and exports in recent years.. But the energy demand destroyed by the virus now overshadows anything that Saudi Arabia or Russia could do to reduce exports.. Global oil benchmark prices hover around $20 a barrel - levels not seen in a generation - and regional prices in West Texas and North Dakota have fallen even further, to around $10 a barrel.. Oil prices are down to $20 a barrel and we don't know where the bottom is.". Large global oil companies, like Shell, Total of France and Eni of Italy, are averaging spending cuts of 20 percent in their global operations.. Even Saudi Arabia and Russia - which helped to spark the oil price collapse with their recent moves to increase, rather than cut, production - are vulnerable to the demand shock produced