With Oil prices hitting record lows and global industry grinding to a halt in the wake of Covid some major energy firms are feeling the pinch.
At time of writing, BP has announced that it is cutting 10,000 jobs. The company is also reducing its capital expenditure by about $3B. This comes off the back of an earnings drop of two-thirds in April.
Worse yet, US based Chesapeake Energy appears to be circling the drain. The fracking superstar has been struggling with its high levels of debt, further compounded by Covid. A restructuring adviser has stated that Chapter 11 is “a matter of weeks, not months”.
Hurricane Energy, which was founded in a garden shed, may face the wood-chipper also. The companies Chief Executive and Founder, Robert Trice, has announced his departure as the company has suspended production forecasts and was forced to shut down a well.
This year can’t get any worse, right?
(This is in no way constitutes investment advice or a recommendation)
