Texas Oil Boomtowns Devastated by Coronavirus: Photos

Texas Oil Boomtowns Devastated by Coronavirus: Photos

For over a decade, the Permian Basin in Texas and New Mexico has been the epicenter of the American oil boom.. As the coronavirus spreads around the world, people are no longer commuting to work, flying on planes and going on cruises, smothering the demand for oil.. The Permian Basin, which stretches across Texas and New Mexico and is almost as big as Britain, accounts for one out of every three barrels of oil produced in the United States.. Another oil boom did come, as Permian production in recent years spurred a global glut, stole market share from Saudi Arabia and Russia and eventually sparked a price war this year.. Most companies operating in the Permian have already shut at least 10 percent of their wells, and with local spot prices down to just $5 a barrel, smaller companies are planning to shut all their wells in the coming weeks, executives said.. But as the world is stuck with too much oil, and too little demand, this area is experiencing a double shock not seen in modern times.. "I don't think we'll see a lot of drilling until W.T.I. goes back to $35-$40," he added, referring to the West Texas