GREY:LSTMF - Post by User
Comment by
blade86caon Jan 20, 2016 2:12pm
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Post# 24477557
RE:Oil’s collapse has delayed $380 billion worth of investments
RE:Oil’s collapse has delayed $380 billion worth of investmentskmapp , IMO oil will start to stabilize and rise after more US and CAD Energy companies start either going bankrupt or consolidate. Most US and canadian banks are doing credit lines reviews of companies come April to June I think , once more credit lines are cut and forced assest sales are placed on companies with very high debt , the companies will have no choice but to file for chapter 11 . I don't think this is gonna happen till later in the year though as so many companies just pumping and only making interest payments on their loans. This applies I think especially to shale drillers
I have seen some posters say that once oil prices do rise in the future that shale drillers can just get back to work so easily and start drilling again. I beg to differ , because in order for them to do that they will need to borrow money again to drill and only after bank / lenders take massive haircut on their loans to these companies , they will be very very fearful next time they loan out money to Energy companies or management teams that have are associated with bankrupt companies.