RE:Interesting articleJohnny41 wrote: Im not going all negative or anything, but I found this interesting non the less. Put any three chief executives of publicly-traded crude oil producers anywhere in the world together in the same room, and the latest Deloitte report says one of their firms will be bankrupt by the end of this year. The global consulting giant said earlier this week there are 175 public oil companies around the planet carrying a collective US$150-billion in debt, pushing them towards what Deloitte describes as a high risk of bankruptcy. Oil bulls may look at a figure like that and think huge drops in supply are soon at hand as all those companies enter creditor protection and turn off their taps, but they would be mistaken. Creditors want all the cash they can get from bankrupt companies and in the case of oil producers, debtholders usually force them to extract all the barrels they can in order to pay back as many of their loans as possible. The same Deloitte report found 80 percent of U.S. oil companies that have declared bankruptcy since July 2014 are still producing today.
Basically it would mean no shut-ins of existing production. But, would any lender actually give millions they had no help to get back to make any new wells? Doubtful. So, let those 60-70% first year declines run their course, and leave the remaining reserves in the ground to maintain some value of the asset.