2020 VISION: Fueled by a price war and a virus pandemic, the oil business is in crisis

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Bruce Campbell | Enid News & Eagle

 In the midst of what could be the biggest crisis ever in the oil industry, coronavirus COVID-19 is playing a starring role.

Earlier this year, energy companies in Oklahoma already were feeling the impact of a worldwide price war between Saudi Arabia and Russia. The price for a barrel of oil dropped from $66 in January to around $20 in March, before rallying Friday to around $25.

With travel virtually being shut down due to the COVID-19 worldwide pandemic, Mike Cantrell, chairman of Postwood Oil in Ada, estimates production is decreasing some 2 million barrels a day.

“This is unchartered territory,’’ Cantrell said. “I’m 69 years old and I’ve been through five oil and gas depressions, but I’ve never been in this territory before. This is a double whammy no one has seen before. Nobody can make money at $25 a barrel.’’

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