BRYAN, Texas (KBTX) - The COVID-19 pandemic is still causing problems for the oil industry.
The initial onset of the pandemic caused prices for barrels of crude oil to do something they’ve never done before: go negative.
Since then, the industry has rebounded, but not to the level experts were hoping for.
Expert economist, Eric Lewis specializes in the oil and petrochemical industry with the Texas A&M Bush School of Government and Public joined First News at Four to break down the issue.
“Now we’re around $40/barrel,” Lewis says, “and 40 is just not quite high enough to make it worthwhile to drill any new wells.”
He says the price of oil hasn’t really affected us here in the Brazos Valley, but that the Permian Basin is beginning to feel the effects.
But what remains a mystery is when the price of oil will rebound.
“A lot of whats going on is just because of the coronavirus,” Lewis explains, “so the fact that we don’t feel comfortable going out to eat for example, overall brings down demand which overall brings down oil prices. I think a lot depends on what happens with COVID-19, with a vaccine.”
He says with more people staying in, canceling trips, and connecting online, the demand for oil is extremely low.
Watch the complete interview in the player above.
Copyright 2020 KBTX. All rights reserved.
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August 29, 2020 at 05:32AM
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Expert: Pandemic still “largely responsible” for oil slump - KBTX
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