Big Oil Crisis Caused by Coronavirus may be irreversible

The price of oil has gone negative after weeks of oil sands output selling for less than a pint of beer per barrel. Banks are preparing for a wave of oil bankruptcies by setting up their own oil companies to operate seized assets. Regulators in Texas are considering setting limits on the state’s production, an approach more reminiscent of Soviet-style central planning than a Republican-controlled regulatory body. An oil company executive just admitted, “No one wants to give us capital because we have all destroyed capital and created economic waste.”

And the energy sector’s valuation…