RE:RE:Saudi death blow comingbago wrote: When companies go under production doesn't just disappear. They usually get picked up the bigger fish but it doesn't just the assets don't just go away. They may take it down some more and production will come down due to depletion and investment but bankruptcies won't bring production down they actually may bring it back quicker as the companies that end up with the assets have resources to ramp up production off the existing business. If oil doesn't stays where it is or retraces back to the 30'a everyone is in a world of hurt not just oil companies it will have a huge effect on banks and may bankrupt some countries as well. It's still too early to call for a collapse in the oil price back to the low 30's as we went through this a month ago and even lower and it bounced back. Seems to be pretty resilient at this price....mgba
I never said bankruptsies would permenantly slow things down, they generally keep pumping anyways to get more money to the banks and credit facilities, but it sure messes things up and causes disruptions in production, but you are right, someone else will buy the assets and keep pumping, just takes time to get that transaction through.