‘No Place to Hide for Energy’

The energy industry is experiencing unprecedented volatility today, as oil prices had the largest single-day drop since the U.S. invaded Iraq in 1991 and company stock prices plunged, despite a 15 minute trading halt. Blame coronavirus fears that are dampening demand and Russia refusing to cut production along with OPEC to help prop up oil prices, with Saudi Arabia reportedly launching an oil price war.

In the midst of the crisis, Dan Pickering, who left Tudor, Pickering, Holt in September to launch his own independent asset management business, urged the sector – in a report titled “Energy Industry: Save Yourself” – to work toward generating more free cash by dramatically lowering spending and cutting production.