

Boomtown Follow-up: The One-Two Punch | Chapter 12
8 snips Apr 30, 2020
Bethany McLean, author of "Saudi America" and a financial journalist specializing in the oil and gas sector, joins the discussion on the unprecedented oil price collapse on April 20, 2020. She reveals how the pandemic and geopolitical tensions led to negative oil prices, a chilling first in history. The conversation touches on the fragility of fracking companies, the human impact of massive job losses, and the necessity for Saudi Arabia to diversify economically. McLean emphasizes the looming challenges for the industry and explores avenues for recovery through renewable energy.
AI Snips
Chapters
Transcript
Episode notes
Arrington's Sign
- David Arrington, a Midland oilman, reacted to negative oil prices with humor.
- He changed his electronic sign to messages like "Oil for toilet paper?"
Fracking's Shaky Fundamentals
- Bethany McLean's predictions about the fracking industry's instability are proving true.
- The industry's dependence on cheap credit and flawed business model created a debt bubble.
Perfect Storm
- The demand destruction from coronavirus and the Saudi-Russia price war created a perfect storm.
- The usual response to cheaper oil (increased demand) didn't happen due to lockdowns.