With the drop in oil prices associated with the coronavirus pandemic, US oil and gas companies are forced to halt projects and give vacations to all employees

With the latest events (sudden drop in oil prices and the coronavirus pandemic), US oil and gas companies have taken measures to try to get around the situation. The fear and uncertainty of the market and what the future holds grows every day.

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Companies in the sector are studying measures to minimize impacts, which in practice are cost cuts, including the possibility of mass layoffs.

The coronavirus is advancing unchecked across Europe and America, while Arabs and Russians cannot reach a consensus on curbing oil production. Such a scenario appears to be perfect to trigger a new global crisis in the oil and gas market.

Halliburton announced that it will give forced leave to about 3.500 employees at its headquarters, located in Houston, USA. Such employees will work week in and week out, without pay for a period of up to 60 days. The company vacation will start next Monday (23).

ConocoPhillips President and CEO Ryan Lance stated that the "industry is clearly experiencing an unprecedented event caused by simultaneous supply and demand shocks." The company is going to reduce its investment plan by US$ 700 million, a 10% decrease in relation to the initial forecast.

At BW Energy, BW Offshore's exploration and production arm, the idea is not to touch the money raised with the Initial Public Offering (IPO) carried out last month.

Other companies hold cost-cutting meetings while customers are checking to cancel contracts using the force majeure clause.

The WTI barrel price until yesterday was quoted at approximately US$ 23. The Brent barrel was trading at US$ 26.