OTCPK:ICPVF - Post by User
Comment by
blade86caon Jan 20, 2016 8:34pm
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Post# 24479065
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:back in
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:back in PAGODAS5 ... your comment ,
"Now they have routed the market, they have to keep prices low perpetually. If prices rise, it really does not take much for the high cost US shale producers and frackers to jump back online."
I have seen that post on many bullboards that as soon as oil heads back up to 40 or 50 WTI approx frackers will immediately jump on easily and start pumping. Easier said than done, IMO once there are enough US energy companies that go bankrupt , that will force alot of banks / lenders to take massive haircuts on their loans because they typically base those loans on assest values, debt to cash flow covenants etc etc.
When these lenders have to take these huge losses they will be very very fearful the next time a "joe schmo" comes along to them asking to borrow money to start up his own "wildcat" oil company because lets face it , they will without a doubt have to borrow the money from somewhere.