From its dusty origins more than a century ago, the American oil industry mythical story sought a pioneering entrepreneur far and wide for the black gold and always immensely rich, if they found it. give today, struck with the US benchmark price for crude oil entering into negative territory for the first time in history, a Wildcatter the oil can not get away without having to pay someone to take it. The pandemic Crown has disrupted the oil industry, filling with more utilities than you burn the world and small players bankruptcy. The damage is just beginning. “In a few years, when we look back at 2020, we can also see that it was the worst year in the history of the global oil markets,” said Fatih Birol, head of the International Energy Agency (IEA), in a call reporters. “April may well have been the worst month. It can be called in April black in oil industry history to go down.” However, the view is bad back at this moment, what remains is to look completely different. Many players have restructured or disappeared. Companies that survive are likely to face political power and reduced the urgent need to deal with the reality of climate change. This will be a big change. Until almost every planet today roaming was alive, the oil has guided our lives and shape our policies and lifestyle. The origin of this crisis in the sector is both simple and dramatic. Since the pandemic crown people at home and factory floors to a standstill, oil demand in April fell by almost a third compared with the same month last year, held according to the IEA. At the same time, Russia has broken curb negotiations drilling with Saudi Arabia and its OPEC partners +. Instead, the two countries launched some of the largest oil exporters in the world, a price war, the production ramp-up and reduce the price fall in the hope of further market shares. They agreed to continue hostilities in the market last week, but it is not full of crude oil from the world’s memory. “It is a double whammy for people in the oil and gas sector,” said Texas Senator John Cornyn, a Republican, for an invitation to the members of the Greater Houston Partnership, which promotes the City of Industry. In Texas, the heart of the American oil industry, manufacturers have run out of places to store what they take out of the ground. With Raffin to buy much less oil to turn into fuel and to save not a place for the pay of produced oil traded at a negative price for the first time on April 20, so that enterprises other to stay out of their hands. At one point, on April 20, the reference price less the US $40 a barrel reached. The negative price is a bit ‘less dramatic than it seems because it applies to oil contracts delivered only in May, but at $20 a barrel price in June well below the $50 a barrel in the field of new wells usually turn a profit in West Texas. The incident is not hurt anyone with the same intensity. smaller players already struggling to survive, many of them have deep after years of oil at a loss to generate. Analysts estimate that hundreds of small companies could also go with prices starting at $20 per barrel in failure. At the same time, the major players can emerge with greater market share and higher profitability hope fade away some of their opponents. “Will force the current low prices out of the market, some companies,” said Mark Haefele, Chief Investment Officer of UBS, in a research note, “but we are convinced that the global oil industry will survive this crisis.” These different interests play in Washington, DC Smaller companies have asked government officials for help. Harold Hamm, founder of the independent producer Continental Resources, 70% has lost its value this year, the White House in March asked the government asked him to help the industry. The CEO of Pioneer Natural Resources, another independent oil company, 50% of its value lost in January called for the governors of Texas, the mandate that companies reduce their production, the oil industry say the same sort of have coal, no effect would. At the same time, oil companies have continued to stay there out of his race are left with the argument that the market should be for the government. For further capital reserves, the largest oil companies may wait until the crisis, buying profitable oil wells cheap. Analysts say that West Texas oil shale has done in recent years, the United States creating the largest producers of oil in the world, and Glencore, probably again quickly when demand returns are generated. Major oil “was not looking for a bailout, not the president wanted to import duties and did not want to share,” says Goldwyn, adding that they decide to let the market support, “the American way.” Still, the companies will survive a series of major challenges. Referring back to the start of this year, it is not necessarily good. Energy was the worst performing sector on the S & P 500 stock index always seen last year, and investors in the industry with skepticism, as consumers and politics, the reality faced by climate change. “The basic concept apart, fell apart,” said Tom Sanzillo, director of finance at the Institute of Energy Economics and Financial Analysis (IEEFA). “This is an area in last place.” In recent years, the oil industry has slowly crept to an existential challenge everyone knew would come with a cultivation of analysts that demand for oil, predicting it would be sometime in the next few decades before rejecting flatline. Crown has these concerns even more urgent for the industry. While the global oil economy is burned by the pandemic fades continue crown, some analysts now say that the world can not consume as much of the goods as last year. The company has formed a figure Schedule survive this change must manage, either by investing in clean energy sources or their assets busting. In both cases, it seems that the age of American Wildcatter mythical is gone forever.