Loading ...Most of the business models are predicated on $70. Oil. The longer it stays at $30, the more layoffs we’ll see.
Sour crude is taking a hit. It is bid $12. below sweet.
Those wells and fields that were financed with junk bonds will be forced to continue producing. The heavy oil fields and marginal wells will be shut in. New exploration will cease after the current leases are drilled and produced.
it won’t happen overnight, but marginal wells shut in, and no new exploration will eventually curb production. Rinse and repeat in the oil patch.
rno