Posted on 06/01/2016 6:47:09 PM PDT by 2ndDivisionVet
How online auctioneer EnergyNet helps bring liquidity, and recovery, to America’s busted oil patch.
In the first 18 months of the oil bust, 70 companies have gone bankrupt, defaulting on $40 billion in debt. A trillion dollars of oil company equity has been wiped out. Layoffs top 200,000. With oil holding at around $45 a barrel, more liquidations are on the way. Already the old guys swear this bust is worse than in 1986, when oil dropped below $25 in today’s dollars.
At least one thing is better now: Thanks to the magic of the Internet, it’s easier for cash-strapped oil companies to auction off even their crummiest fields. That might help cushion the blow for near-insolvent outfits praying for higher oil prices to bail them out. “They have no choice but to sell assets to pay off debt,” says Chris Atherton, president of EnergyNet, “and I tell them, ‘We’re going to sell this no matter what.’”(continued)
(Excerpt) Read more at forbes.com ...
Son worked on oil rig after getting out of Marines for 6 years. Just got out of oil industry in January. He started in Gulf of Mexico, then went to Alaska, then Thailand, then S. Korea, he had enough. Came home finally and now has a normal job M-F and no travelling.
He had stock in oil companies, sold it off few months ago. Just the other day he showed me where he had stock in Pacific oil and it had shot up to 974% return. He was just sick that he sold the stock.
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