USA oil companies began to cut staff salaries

Specifies that to reduce costs of the American oil industry forced not only to sharply falling prices of raw materials, but also a rapid slowdown in economic activity in the US due to the ongoing epidemic coronavirus in the country.

Photo: Gettyimages whether to Stop the low prices of shale production

Moreover, if ordinary workers starting from 1 April, losing about 30 percent of his monthly pay, the salary of managers will be reduced much more serious. Thus, the Executive Director of the company will lose 81 percent of their income, and top management will receive only 68 percent of payday. Giving preferences and rebates, for example subsidizing the travel of employees or payment of sports will also be cut.

“Pandemic coronavirus led to an unprecedented reduction in demand for oil in the world. In addition, the price war between Saudi Arabia and Russia further complicated the situation. We must take immediate and unprecedented action in our company” reads caught in the disposal media internal communications Occidental Petroleum Corp.

it is Noted that in addition to this, most other major players in the oil and gas market in the U.S., primarily the company’s production of shale oil, have also begun to reduce their costs. The problems of petrochemical industry of the United States largely contributes to strong debt load of this sector of the American economy. So, according to the Agency Moody’s, in 2020-2024 years he will pay about $ 90 billion of debt on open in a period of high oil prices, credit lines.

Photo: iStock RAS economists gave projections for the year 2020

against this sombre backdrop that threatens the final collapse of the “shale revolution” in America, the administration of the President of the United States Donald trump is preparing a package of emergency measures to promote national producers, the newspaper the Washington Post. According to the newspaper, the speech is about the results of the US Federal government major loans American oil and gas companies at a low rate that will allow them to refinance loans to avoid bankruptcies.