Another Nail in the Oil Industry’s Coffin

This is a temporary anomaly in the oil market, brought on by the dramatic reduction in demand due to the pandemic, and the fact that those buying oil at this point have to pay handsomely to store it. In any case, what Reich says is 100% correct.

There are several vectors conspiring against the oil industry, and the coronavirus is only one.  Electric transportation and ramping environmental concerns are in the process of eating this sector alive.  The divestment movement is driving up their cost of capital as well.

ExxonMobil common stock was trading at $87 five years ago; now it’s at $41. People are upset that they can’t get haircuts?  There’s one for you.