Many small to midsize petroleum producers see a little-known, four-year-old lending guidance document as obstructing the main goal of the stimulus packages passed by Congress — to keep workers employed and prevent companies such as theirs from going bankrupt. Back then, the banking regulator wanted to make sure petroleum producers would be able to pay back the loans. Taken together, the IPAA's proposal would give banks more flexibility in deciding which petroleum producers are creditworthy enough to get loans. They worried reserve-based lending had gotten riskier for banks to do after a slide in oil prices between 2014 and 2016. Welcome to The Energy 202, our must-read tipsheet on energy and the environment.

Source: Washington Post June 26, 2020 11:48 UTC