For Immediate Release
Big Oil And Coal Is In Big Trouble Despite Billions In Bailouts
Trump’s Fossil Fuel Fantasy Is Derailing An Economic Recovery And Hurting Workers
HELENA, Montana - Just over a month ago, President Trump claimed victory for saving Big Oil, saying that he ‘created it’ and then he ‘saved it.’ But like many, many claims by the President, this fantasy is false. Despite upwards of $7 billion in taxpayer-backed Paycheck Protection Program loans, billions more in tax breaks, and waiving environmental rules by federal agencies that gave corporations a greenlight to pollute with impunity, bankruptcies, devaluations, and massive layoffs are sweeping the sector and derailing an economic recovery.
- ExxonMobil will be removed from the Dow Jones Industrial Average at the end of the month. Chevron is the last remaining Big Oil corporation on the Dow but is also in deep financial trouble.
- A new industry jobs report by BW Research paints another bleak picture for the fossil fuel industry. Through July, the industry has shed some 118,000 jobs or 15.5% of the sector’s total employment, with oil states like Texas (39,883), Louisiana (12,287), and Oklahoma (10,727) experiencing the most jobs losses while states like Kentucky (29.4%), Pennsylvania (26.6%) Alaska (25%), and New Mexico (24.6%) saw the largest percentage drop.
- Reports out of coal-producing regions look even bleaker despite Trump’s rhetoric and deregulatory fervor. Coal hasn’t been economical for years, yet taxpayer subsidies have continued to flow to the polluting industry.
- The sector has also seen a wave of bankruptcies and the accumulation of debt according to a report released last month. As of the end of last quarter, 32 oil and gas corporations with debt levels approaching $50 billion have filed for bankruptcy and more are on the horizon.
- And, the forecast for domestic oil to recover to pre-COVID levels won’t occur until 2022 or later, with prices hovering below $50 per barrel until at least the first quarter of 2021. Without massive taxpayer subsidies, oil fracking is not profitable at a per barrel price point that low.
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