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business Monday 6 april 2020
Chaos and scrambling in the US oil patch as prices plummet

By CATHY BUSSEWITZ In Texas, which produces
AP Business Writer about 40% of the country's
NEW YORK (AP) — In Mon- oil and employs more than
tana, a father and son run- 361,000 people, the picture
ning a small oil business is especially bleak. Three
are cutting their salaries in weeks ago, Bobby Whita-
half. In New Mexico, an oil cre, vice president of Impa-
truck driver who supports la Transport in Plano, Texas,
his family just went a week was looking to hire a well
without pay. And in Alaska, site supervisor for $200 a
lawmakers have had to dip day with paid time off. Now
into the state's savings as oil he's had to lay off many of
revenue dries up. his workers.
The global economic crisis "It's dead. It's dead as can
caused by the coronavirus be," he said.
pandemic has devastated While many industries para-
the oil industry in the U.S., lyzed by the coronavirus
which pumps more crude pandemic received help
than any other country. In from a recent $2 trillion
the first quarter, the price congressional relief pack-
of U.S. crude fell harder age, the energy sector was
than at any point in history, largely left out. The Ameri-
plunging 66% to around In this Thursday, April 2, 2020 photo, an oil rig lights up the horizon on the outskirts of Midland, Texas can Petroleum Institute, the
$20 a barrel. after a late sunset. Associated Press. oil industry's main lobbying
A generation ago, a drop group, has maintained its
in oil prices would have anyone to survive." Crude about 500 employees that tana, who along with his free market philosophy,
largely been celebrated prices recovered some filed for bankruptcy protec- son is slashing his salary in saying it does not want di-
in the U.S., translating into ground, trading at around tion Wednesday. Schlum- half and plans to cut the his rect financial assistance
cheaper gas for consum- $28 a barrel Friday, after berger, one of the largest remaining employees' sala- from government. But the
ers. But today, those de- a week in which President oilfield services companies, ries by 25% and end their group did ask the federal
pressed prices carry nega- Donald Trump tweeted slashed its capital spending health insurance benefits. government to relax envi-
tive economic implications, that he expects Saudi Ara- by 30% and is expecting to The impact is far-reaching. ronmental rules.
particularly in states that bia and Russia will end an cut staff and pay in North In Alaska, lawmakers re- Some smaller producers
have become dependent oil war and dramatically America. And Halliburton, cently passed a budget would welcome financial
on oil to keep their budgets cut production. another major oilfield ser- that sharply draws down relief. "If the federal govern-
balanced and residents On Friday, he met with oil vices provider, furloughed a savings account that ment is going to do some-
employed. executives but there were 3,500 of its Houston employ- had been built up over the thing to help small business-
"It's just a nightmare down no announcements, and ees, ordering workers into a years when oil prices were es nationwide because of
here," said Lee Levinson, prices remain well below one-week-on, one-week- higher. In New Mexico, the problem with the coro-
owner of LPD Energy, an oil what most U.S. producers off schedule. where a third of the state's navirus, we certainly don't
and gas producer in Tulsa, need to stay afloat. "You will see a tremendous revenue comes from petro- want to be excluded from
Oklahoma. "Should these Among the latest casual- loss of jobs in this industry," leum, the governor slashed that," said Dewey Bartlett,
low oil prices last for any ties is Whiting Petroleum, said Patrick Montalban, infrastructure spending and Jr., president of Keener Oil
substantial period of time, an oil producer in the Bak- owner of Montalban Oil will likely cut more in a spe- & Gas and former Republi-
it's going to be hard for ken shale formation with and Gas, based in Mon- cial legislative session. can mayor of Tulsa. q

German restaurant takes novel approach to keep cider flowing

FRANKFURT, Germany (AP) course the tasty Aeppel- then pushes a plastic tub
— How does a traditional woi cider — to customers down a makeshift slide to
German restaurant com- waiting in a long line of the car's window to take
ply with the untraditional cars. payment at a safe dis-
demands of the coronavi- "The restaurant had to tance.
rus era? close, nobody was al- Driving ahead, the cus-
Thomas Metzmacher was lowed to sit inside any- tomer gets their order in
faced with the prospect more, so it was either give another tub pushed to
of having to shut down up or fight," he said. "And I their window.
his Frankfurt restaurant decided to fight." "It's going great," says
specializing in a tradition- Metzmacher's Zum Lah- Metzmacher. "My regulars
al tart hard cider due to men Esel restaurant, which are supporting me, they're
German regulations pro- has been in operation really happy I'm open."
hibiting groups of people since 1807, normally seats Without people sticking
from gathering amid the 200 people inside and an- around for a few more
coronavirus pandemic. So A can with apple cider slides down to car from a window of the other 200 in an outdoor of the signature ciders,
he came up with a novel apple cider restaurant 'Zum Lahmen Esel' in Frankfurt, Germany, garden. profit margins are low but
solution. Friday, April 3, 2020. Now, cars drive up to a Metzmacher says it's bet-
After toying with the idea Associated Press. small booth in front of the ter than nothing.
of a delivery service, he restaurant, where one of "At least we're carrying on
instead turned his half- makeshift drive-thru. Now fried potatoes and other Metzmacher's 36 employ- and we're continuing to
timbered restaurant into a he is serving up schnitzel, German favorites — of ees takes their order, and work," he says. q