Over 200 Companies Bankrupt in the Petroleum Industry

The coronavirus outbreak inflicted a harsh blow on the oil industry. For this reason, over 200 companies went bankrupt in the oil industry. The world's largest oil producer and consumer, while more than 200 companies in the sector are pulling bankruptcy flags due to low oil prices in the USA, it is observed that the losses of the industry have already reached billions of dollars in this process, which is expected to continue next year. Worldwide oil consumption and economic growth expectations for this year have continued to be weak due to the new type of coronavirus epidemic, while oil prices dropped to the lowest level in the last 20 years in April, bringing hundreds of companies to bankruptcy in the USA.

70 thousand people laid off

Ed Hirs, Energy Economist at the University of Houston, stated that many companies operating in the oil industry have attracted the bankruptcy flag due to the lack of new loans from banks and investors. "The employees working in the oil fields were the first to lose their jobs. It is estimated that approximately 70 thousand employees lost their jobs," said Hirs. Ed Hirs, the number of oil drilling rigs considered to be an indicator of the US oil industry's outlook and short-term crude oil production, decreased by 425 units in this period by falling 9 consecutive weeks and decreased to 258 in the week of 9-15 May.

Loss Over $ 60 Million

Noting that the US oil industry has lost more than $ 60 billion due to the decrease in the number of oil drilling rigs alone, Hirs said, "If the price of barrels of oil is below $ 30, a loss of more than $ 24 billion per month is projected in the sector. Only the economic damage of the state of Texas is more than $ 135 million per day."