Coronavirus

The U.S. oil and gas industry is taking a severe pounding because of the oil price rout and the coronavirus pandemic, responding in turn by downsizing activity, spending and workforces, but analysts are warning uncertainty remains about whether it’s enough.

Coronavirus slowdown fears and warmer-trending weather data had natural gas futures down sharply early Wednesday, nearing a key support level. The April Nymex contract was off 9.7 cents to $1.632/MMBtu at around 8:30 a.m. ET.

Since the outset of the coronavirus and the global oil price crash, prices for North Dakota’s Bakken Shale crude oil have cratered to below $20/bbl, and state officials said Tuesday they expect the rig count and completed wells to follow suit.

The Canadian oil and gas sector is adapting to the Covid-19 pandemic by embracing increasingly diligent measures.

More than 3,000 people based in Houston have been furloughed by Halliburton Co., while ConocoPhillips and other big producers continue to cut capital spending in an increasingly dire situation, as the coronavirus and oil price war sink 2020 operating plans.

With the coronavirus pandemic imperiling not only public health but also energy demand, natural gas futures joined in a wave of selling across the broader economy Wednesday. Undercutting the previous four-year front month low, the April Nymex contract settled at $1.604/MMBtu, down 12.5 cents

With coronavirus demand impacts continuing to weigh on the market, and with the latest forecasts shedding weather-driven demand, natural gas futures were trading slightly lower early Tuesday. The April Nymex contract was down 2.0 cents to $1.795/MMBtu at around 8:30 a.m. ET.

Canada’s C$40 billion ($30 billion) inaugural natural gas export project on the west coast has remained on schedule despite the global Covid-19 outbreak, project managers said in an update.

The coronavirus pandemic has wreaked havoc on life in general, and for the energy industry, the next few months may prove to be make or break, as capital spending plans are cut and employees move to home offices.