People in the industry knew this this was coming with the expiration of the current future oil contracts. Oil basically is a commodity worth nothing as of today storage hubs such as the one in Cushing, Oklahoma have no space left to store oil.
Oil brokers are literally paying money to get rid of oil. There is no demand for oil with the U.S economy basically shuttered.
Another example of a complete lack of understanding and leadership by Donald Trump as he remained frozen like a deer in the headlights until it was too late to bring the Saudis and Russians in line way back when it could have mattered.
Can you imagine if Barack Obama had overseen this fiasco?
This will have tragic economic consequences for Oklahoma in that I would guestimate somewhere around 20% of Oklahoma’s GDP as a state is oil and gas trickle down related. Add to that how important the retail gas tax is to the state’s budget and this basically spells a very unpleasant scenario for the state moving forward.
I find it ironic that Oklahomans still embrace Donald Trump even as under his watch the U.S. oil and gas industry has been gutted.
Donald Trump doesn’t know what he’s doing. He’s not a businessman. He inherited $414 million from his daddy Fred Trump almost forty years ago. If any blind idiot had just taken that money and purchased indexed securities blind-folded they would be a multi-billionaire today.
Trump isn’t even that and that’s why primarily he doesn’t want to reveal his tax returns.
If you value his golf courses at somewhat coherent market values he may not even be worth a billion.
He doesn’t know how to create, build, or maintain a legitimate business. Every venture he’s ever touched has died.
To quote Michael Cohen, ” He’s a thug, a con artist, and a grifter.”
I’d love to have a chat with Rex Tillerson this morning.