Art Berman, Labyrinth Consulting Services, talks about the current state of oil and gas and how the COVID-19 Shutdown has impacted the market.
Host Jason Spiess asks Berman if the oil and gas market was impacted last year when the coronavirus started impacting China. Berman explains how the economy doesn’t work like a light switch and will take some time to rebound.
Berman comments on the recent momentum of governments stepping in and controlling oil and gas production. Texas, Oklahoma and North Dakota have all discussed the idea of state-controlled production.
This past March, Mike Sommers, president, API, immediately shut down bail outs and government intervention. Then, Parsley Energy CEO Matt Gallagher publicly discusses government intervention on CNBC.
Berman opines on how the energy market has been a “managed market” rather than the “free market” so many say exists. He cites the Texas Railroad Commission, OPEC and other quasi-government organizations who have been controlling supply and prices since the 1930’s.
The idea the oil is the economy is discussed in detail. The context is explaining how important the oil and gas industry is to the planet’s flow of lifestyles and economies.
China consolidating natural gas companies, shut ins impacting small business and Middle Eastern impacts are also topics discussed in the interview.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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