The Trump administration is seeking to ease a severe cash crunch in the drilling industry by raising loan limits available under a coronavirus stimulus package and by barring lenders from discriminating against drillers, according to Energy Secretary Dan Brouillette.
“It really needs to be something closer to US$200 or US$250 to be of any real benefit to them,” Brouillette told Reuters in an interview, adding he had met with industry representatives on the issue on Wednesday. The U.S. oil and gas industry is estimated to owe more than US$200 billion to lenders through loans backed by oil and gas reserves. As revenue has plummeted and assets have declined in value, some companies are saying they may be unable to repay.
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