Colorado Braces for Impact as Oil Prices Drop Below Zero
April 20, 2020 was a record-setting day for the oil and gas industry, but not in a good way.
CNN is reporting that a barrel of oil was trading at -$1.43 on Monday, meaning that those who had oil to sell were willing to pay people to take it.
Business Insider is reporting that the oil and gas industry has taken a 321% drop in sales due to the COVID-19 pandemic. This is caused by a lack in demand as people are staying home, aren't driving as much, and planes and other public transit are grounded across the world.
Dan Haley, head of the Colorado Oil and Gas Association said this to CBS Denver:
It’s hard to sit here today and say exactly what pricing environment will mean for operators, but it’s not good.
Haley goes on to say that the degree of destruction to the oil and gas industry will depend solely on how long the coronavirus pandemic closures last.