According to the Washington Post
The Washington post is reporting that the White House is likely to pursue federal aid for shale companies that are hit by the virus and oil shock.
The price of crude oil tumbled this week after the Saudi's and Russians failed to come to an agreement at the end of last week on production cuts. In response, Saudi Arabia decided to lower the price to customers in Asia, North America, Europe and threatened to increase production sending the price of oil tumbling to the downside. That news and the threat that coronavirus will depress movement and demand for oil, is contributed to the extraordinary move lower in crude oil prices this week.
Shale companies are likely operating at below breakeven levels. In an industry that requires a large amount of debt, that it is likely to lead to a sharp contraction in production.
