Federal Reserve Extends Lifeline To Ailing U.S. Oil Industry

Oilprice.com ^ | 01/05/2020 | Juli

[bananaman22]

The Federal Reserve made some changes to its Main Street Lending Program according to a Thursday press release by the central bank that will now extend a much-needed lifeline to the U.S. oil industry.

As bankruptcies, capex cuts, and unfavorable financial reports from Q1 start to trickle into the US shale patch, more oil companies in peril will now be able to tap the Main Street fund that was set up to render aid to small and medium sized businesses.

Prior to today, those funds were not available to companies who had more than 10,000 employees and $2.5 billion in revenues. Borrowed funds could also not be used to refinance existing debt.

[hardspunned]

Thank God, we have Trump’s team in place. Can you imagine the state we’d be with Obama’s crew? Barry would have driven the Americans economy all the way to Venezuela.

[RedStateRocker]

I thought this program was for mid-size companies?

[DannyTN]

And how slow would the Federal Reserve be, if not for Trump pounding on them for the last 3 years?

[Vendome]

Why are gas prices going up in California while they are decreasing everywhere else

[Eric Pode of Croydon]

Back when my brother was paying north of $4.50 a gallon to keep his work trucks on the road, I don't recall any members of the oil industry offering him a bailout.

We seem to be in a situation where the producers of raw materials (sugar, steel, oil) get corporate welfare while the users of those materials (bakers, builders, truckers) are told "suck it up, buttercup".