Drillers on brink of collapse: Oil companies are looking at ‘outright liquidations’, U.S. oil supplies hit highest level in 80 years
Investmentwatchblog.com
January 23rd, 2015
Conway McKenzie, the largest restructuring firm in the US, says that oil drillers will begin shutting down as soon as the second quarter, followed closely by explorers, according to Bloomberg’s Joe Carroll.
The game changed when on January 5, crude broke $50 per barrel for the first time since April 2009 when the economy was in recession. Here’s what Conway’s John T. Young told Bloomberg:
“When I saw WTI hit $65, I thought we’re going to be really busy with restructurings … When it hit the $40s, I knew we were looking at outright liquidations.”
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