U.S. securities filings show that only three of 12 listed oil and gas companies that received emergency government aid made available for small businesses said they would return it ahead of a deadline for firms that do not need the funds to do so, Reuters reported. The U.S. Treasury Department offered amnesty to public companies that return money they borrowed by May 18, saying it would deem they made the application in good faith due to economic uncertainty fueled by the coronavirus outbreak, before guidelines were clarified. The country’s energy sector has been clamoring for government aid in the wake of plummeting oil prices that have driven several debt-laden exploration and production companies into bankruptcy. While President Donald Trump said last month that his administration would formulate a plan to help the oil and gas industry, no specific aid has been announced. This has left energy companies to seek relief under the broader $2.3 trillion U.S. stimulus package. One aspect of the latter that has been used by oil and gas firms is the so-called Paycheck Protection Program (PPP) for small businesses, providing loans that can be forgiven to cover payroll expenses, as well as mortgage interest, rent and utility costs.
