Obama wants coal and oil to die.
A Federal Reserve, zero interest rate, QE sponsored bubble, which will have to be followed up by a Federal Reserve sponsored, negative interest rate bailout.
I can just hear the glee from the left. Those EVIL oil companies are finally going down!
What are the odds that 99.9% of those in the east are using some form of fossil fuel to keep warm during their Blizzard of 2016.
If they REALLY want help they’ll give Hillary $600,000 to ‘give a speech’ if you know what I mean...
This is exactly what the Saudis intended, to shut down resurgent US production. We’ll have cheap oil again in the interim, but it won’t always be cheap, and we’re headed back to square one as far as being independent.
Go back 12 years.
In the political arena, shale was unviable, and drill baby drill couldn’t solve our energy problems. Or so we were told.
Why? Most metrics showed we needed $60/ barrel oil for the investment costs to be recaptured.
In 2008 when prices were around 90, the claim was that it was unsustainable due to untenable prices at the pump.
Jump forward, and the market has crashed due to a glut, largely from increased US and Russian production, all while OPEC maintained production levels.
The problem remains the cost of production in the U.S. And the international interests (Saudis) are willing to bite a short term bullet to regain their long term dominance over the market place. Why else would OPEC refuse to cut production? They know they win in the long run.
See this story from only 2 days ago, 22 January 2016, OPEC is still not unanimously willing to cut production.
https://www.rt.com/business/329803-opec-oil-saudi-nigeria/
Just my 2c , but this is recent history, in our time. Do your own research.
It’s the oil business.
There were a number of businesses which went bankrupt during the Great Recession. It seemed like the worst hit were those with the greatest amount of debt on their balance sheets. I predict the same thing will happen in this next year for the oil companies. The small companies are the most leveraged and the least likely to survive. Before buying oil stock, I would closely check out their balance sheet.
BTW, we sold the one oil stock we held on 12/31/2013. It has since dropped 96%.