Do you think we’re in for several years of $80 (or lower) oil? If so, could some highly-leveraged oil services firms go bust?
Yes we are. I don’t see oil prices going past $100 any time soon.
The market demand simply isn’t there.
Do you think we’re in for several years of $80 (or lower) oil?
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Without try to sound like a jerk, if I could predict the price of oil, I wouldn’t work for a living. I learned a long time ago understanding the oil/gas industry is not equal to understanding all the influences in a volatile commodities market.
Too much outside the industry impacts prices: wars, regulations, taxes and subsidies of other technologies, etc.
I try to avoid price predictions.
Lower oil prices will result in less investment for growth. $80/bbl will lead to slower growth, but still some US shale growth, IMHO. Some smaller independents at that price will be selling assets with future production to cover their overly large debt. Major producers will slow, maybe stop buying in shale; or if they believe that prices will be back near $100/bbl in a few years, they may buy in like crazy at bargain prices.