NEW YORK – Dozens of American Shale Oil companies could go bankrupt as prices reach a historic low.
The companies use Hydraulic Fracturing to get SHALE Oil out of rock and stone.
The innovative method has made the United States, a major oil producer. But, it’s expensive.
That makes it hard to turn a profit with a price war and coronavirus disrupting supply and demand.
West Texas Intermediate Crude is the cheapest it’s been, Since the New York Mercantile Exchange started trading oil futures.
Now, some experts believe 100 oil and gas companies could file for bankruptcy this year if prices don’t go up significantly.