$40 Oil Isn't High Enough For Indebted U.S. Shale Drillers

The Covid-19 pandemic has added severe financial strain on a North American upstream industry that was already reeling under billions of dollars of debt. With WTI climbing past $40 a barrel, most exploration and production firms (E&Ps) have been able to keep their head above water, but unless prices strengthen further about 150 more E&Ps will need to seek Chapter 11 protection through 2022, a Rystad Energy analysis shows.

FTS International Files For Bankruptcy

FTS International (NYSEMKT:FTSI) says it has filed for Chapter 11 bankruptcy protection and will file a prepackaged plan of reorganization in the coming weeks. The hydraulic fracturing service company says it entered restructuring support agreements with ~75% of holders of 6.25% senior secured notes due 2022 and ~64% of secured debt claims.

Bipartisan Legislators Unveil Bill Aimed at Helping Railcar Manufacturers

A bipartisan group of congressional legislators has introduced a bill that would provide a temporary tax credit to railcar manufacturers that have been hit hard by pandemic-induced, adverse market conditions. The Freight Rail Assistance & Investment to Launch Coronavirus-era Activity & Recovery Act, or Freight RAILCAR Act, seeks to provide a 50% tax credit for new railcars or for the modification of existing railcars to help offset costs, according to the representatives.

RSI Praises Introduction of Legislation to Stimulate U.S. Railcar Manufacturing

The Railway Supply Institute (RSI) released a statement in support of the bipartisan introduction of H.R. 8082, the Freight Rail Assistance and Investment to Launch Coronavirus-era Activity and Recovery Act or the "Freight RAILCAR Act" by Representatives Brad Schneider (D-IL-10), Darin LaHood (R-IL-18), Dan Lipinski (D-IL-3), Rick Crawford (R-AR-1), Earl Blumenauer (D-OR-3), and Drew Ferguson (R-GA-3) in the House of Representatives on Friday.

FRA + STB: Seven Class I's, One Letter

Curiously timed with the start of the Republican National Convention (or perhaps not so curiously), the Surface Transportation Board and Federal Railroad Administration on Aug. 24 sent joint, identical letters to the CEOs of the seven North American Class I's—Carl Ice (BNSF), Keith Creel (Canadian Pacific), JJ Ruest (CN), Jim Foote (CSX), Pat Ottensmeyer (Kansas City Southern), Jim Squires (Norfolk Southern) and Lance Fritz (Union Pacific)—citing service problems and "increased communication and transparency with rail shippers."

U.S., China Reaffirm Commitment to Phase 1 Trade Deal in Phone Call

Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods, giving a boost to financial markets on Tuesday.

U.S. and Brazil in Ethanol Showdown

A bipartisan coalition of House members is urging the Trump Administration to hold firm in its efforts to restore fair and equitable ethanol trade with Brazil. U.S. chief ag negotiator Gregg Doud says they intend to do just that.

Class I Railroads Brace for Tropical Storms Marco and Laura

Class I railroads with operations along the U.S. Gulf Coast are bracing for potential impacts from tropical storms Marco and Laura. The timing of the storms' approach to the Gulf Coast states is packing a one-two punch for area ports and transportation providers. Another concern is flooding as the storms travel northward. Marco made landfall Monday, but now the concern has focused onto Laura, which has been upgraded to a hurricane that will make landfall on Wednesday, according to the National Hurricane Center.