Upstream Companies need help from Washington - April 27
Posted: Mon Apr 27, 2020 9:44 am
Treasury Secretary Steven Mnuchin said yesterday (April 26) that he and Energy Secretary Dan Brouillette are studying the idea of loans to oil companies "very carefully."
Appearing on "Fox News Sunday," Mnuchin was pressed on whether the Trump administration would "bail out" oil companies despite critics who say that many of the problems facing the industry are of their own making. "Let me be very clear, the president has said no bailouts to any companies, whether that was airlines or oil companies. We will consider again loans to companies in a proper scenario with strategic importance, but no bailouts. No shareholder bailouts," Mnuchin said.
Key GOP senators are bracing for a fight over help for beleaguered U.S. oil and gas companies in COVID-19 stimulus talks, dismissing growing calls from Democrats and environmentalists to shut the door on a "Big Oil bailout." In separate interviews with E&E News last week, Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-Alaska) and Sen. Kevin Cramer (R-N.D.), a close ally of President Trump, vowed to press on with efforts to secure aid for struggling domestic producers in future stimulus negotiations.
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MY TAKE:
> Ban oil imports for at least 90 days NOW.
> Open the SPR for oil storage NOW
> Come up with a loan package that will provide liquidity for small and mid-cap upstream companies so they can pay off their bank credit facilities if necessary. These should be one year loans at a low interest rate.
Appearing on "Fox News Sunday," Mnuchin was pressed on whether the Trump administration would "bail out" oil companies despite critics who say that many of the problems facing the industry are of their own making. "Let me be very clear, the president has said no bailouts to any companies, whether that was airlines or oil companies. We will consider again loans to companies in a proper scenario with strategic importance, but no bailouts. No shareholder bailouts," Mnuchin said.
Key GOP senators are bracing for a fight over help for beleaguered U.S. oil and gas companies in COVID-19 stimulus talks, dismissing growing calls from Democrats and environmentalists to shut the door on a "Big Oil bailout." In separate interviews with E&E News last week, Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-Alaska) and Sen. Kevin Cramer (R-N.D.), a close ally of President Trump, vowed to press on with efforts to secure aid for struggling domestic producers in future stimulus negotiations.
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MY TAKE:
> Ban oil imports for at least 90 days NOW.
> Open the SPR for oil storage NOW
> Come up with a loan package that will provide liquidity for small and mid-cap upstream companies so they can pay off their bank credit facilities if necessary. These should be one year loans at a low interest rate.