>A large economic downturn means a lot of small, independent companies will struggle to survive. Being swallowed by a megacorp might be one of the few ways to keep something alive.
this is going to huge oil company consolidation now
This isn't because of the economic downturn. This is because just before COVID-19, Saudia Arabia and Russia began an oil supply war.
It's a pissing match between MBS and Putin. MBS/SA wanted to increase production which lowers prices, Putin wanted to maintain current levels because lower prices let US shale oil back into the market.
Prices dropped to the mid USD 30s per barrel.
Then COVID-19 hit.
The result is that oil has dropped now to mid USD20s/barrel.
US shale oil producers are uneconomical below USD40/barrel.
this is going to huge oil company consolidation now