So what’s the big problem DB is forecasting? Recession or depression from low energy prices? I doubt that.
The petroleum industry periodically goes through cycles like this. Companies go bankrupt, debts aren’t paid, workers are laid off...but, in the end, things shake out and supply and demand balance is restored. It is never pretty while it’s happening and hurts lots of people (including bond holders and shareholders), but that’s capitalism.
We could always elect Bernie, nationalize the petroleum industry, live happily ever after and enjoy reading the government’s newest Five Year Plan for Oil and Glorious Revolution.
Oil and gas production from shale is relatively expensive, which makes it uneconomical unless prices are high. Granted, shale production gets scaled back when prices are too low, but too much so and the resulting wave of bankruptcies and abandoned shale projects reduces the pool of resources available for rapid mobilization when prices again spike.