Trump’s Big Oil Deal Hinges on Weakest of Shale Going Bust

U.S. contributing market-based declines to broad output deal
Nearly 40% of producers face insolvency at $30 oil: survey

Oil storage tanks stand illuminated at night at the RN-Tuapsinsky refinery in Tuapse, Russia, on March 22.Photographer: Andrey Rudakov/Bloomberg

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By Stephen Cunningham

April 13, 2020 at 2:56 AM UTC

Updated on

April 13, 2020 at 4:40 PM UTC

This article is for subscribers only.

President Donald Trump said the “big Oil Deal” he brokered will save hundreds of thousands of American jobs. But the agreement hinges on a shale bust that could spell the end for some explorers drowning in debt, bringing a wave of bankruptcies and job losses.

On Sunday, the OPEC+ group agreed to pare production by 9.7 million barrels a day, ending a devastating price war between Saudi Arabia and Russia. Trump, meanwhile, is counting on market forces to shave some 2 million barrels a day of overall U.S. output by the end of the year.