FORT LAUDERDALE, Fla. – The coronavirus pandemic’s economic shutdown lowered demand, and the recent price war between Russia and Saudi Arabia increased supply. Now, there is an epic glut of oil. On Tuesday, the Port Everglades’ fuel farm in Fort Lauderdale was nearing capacity.
For the first time in history, oil prices have dropped into the negative. Without demand, this is not good for Miguel Lorenzo, a driver at CWC Transportation, who said he fears he will have no loads to deliver. He said federal aid arrived just as his company was preparing for job cuts.
“Thanks to the government we have been able to keep working,” Lorenzo said.
With a need to expand oil storage, some companies are using crude oil tankers off the Florida coast to store the oil. They are working with Energy Secretary Dan Brouillette and other members of President Donald Trump’s administration to find more solutions.
“We will never let the great U.S. Oil & Gas Industry down,” Trump wrote on Twitter.
Domestic drillers are suffering. This has translated to layoffs and furloughs in the sector. The Trump administration is looking into buying undeveloped crude reserves from domestic drillers as part of the national emergency stockpile.