The market losses of seven American companies producing shale oil have reached about $ 45.5 billion since the beginning of the year.
According to Arabia Net, the market value of these companies amounted to about $ 33.8 billion, compared to a market value of $ 79.4 billion at the end of 2019.
Shares of major shale oil companies listed on the New York Stock Exchange this year fell more than 40%, under pressure from declining oil prices, but some of them recorded declines of more than 90% from prices recorded last year.
Since most companies incur huge debts and high production costs, the dealers cleared these shares clearly, which led several companies to trade to the lowest levels in their history. Despite the downward trend in its trading since late 2017, prices have slipped sharply this year.
Pioneer Natural Resources PXD shares tumbled 52%, while CXO Conch Resources Resources 43%, Diamond Back Energy FANG shares tumbled 66%, to record the lowest in more than eight years.
Whereas, OAS and Parsley Energy PE shares, and Whiting Petroleum WLL, are trading near their lowest level in history.
This comes with the collapse in oil prices due to the depletion of demand, which demonstrated a global glut in the supply, at a time when billions of people around the world are still staying their homes due to the spread of the Corona virus.
And oil trading during the past Monday and Tuesday caused a shock to the world oil markets, as American crude collapsed, bringing the price of May delivery listed in the New York market to below zero for the first time in history, which means that investors are ready to pay to get rid of oil.
The stock price of OAS fell by 92%, as the market losses since the beginning of the year amounted to nearly a billion dollars, so that the company's market value would be eroded to less than 100 million dollars, as the company faces a major challenge in dealing with the maturity of large debts by the end of 2021 and 2022, as it faces Restructuring option.
US President Donald Trump is calling on the federal government to find ways to make money available for the oil and gas industry in the United States, where he instructed the Secretary of Energy and Treasury to formulate a plan that will make money available so that these companies and important jobs are safe for a long time to come.
Regarding Texas crude oil prices, it has tumbled more than 70% since the beginning of this year, while Brent crude fell about 66% for the same period to trade at $ 20.7, at the time of preparing the report.
