42 AMERICAN Oil Companies File for BANKRUPTCY 2016 Oil Crash Has Banks Running Scared

The big banks are seriously exposed to loans to oil companies. The oil industry is taking down the biggest banks. It is like we are in the middle of a huge war and the resource providers are beating the crap out of the big banks. Not sure where this is all leading but it looks grim to me at this point for a lot of the world economy as this unfolds.

Wasn't there just a thread made within the past two or three weeks that hypothesized that this would happen? (not that it's difficult to spot anyway)

It's going to be an interesting... perhaps terrifying... year.

Just to add some links for those who would rather read into it:

money.cnn.com...

Experts say there are a lot of parallels between today's crisis and the last oil crash in 1986. Back then, 27% of exploration and production companies went bust.

www.ibtimes.com...

Patrick Hughes, who heads Haynes and Boone’s Denver office, said he expected bankruptcy filings in this sector would exceed last year’s totals. “Best guess is at least double 2015 on bankruptcies, with that being maybe 20 percent of the number needing some form of restructuring,” he said in an email.

Oil prices have plummeted 70 percent over the past 18 months as a growing global supply glut has bumped against weaker economic outlooks in China and other key markets, sparking worries over declining demand.

originally posted by: Ghost147
It's going to be an interesting... perhaps terrifying... year.

For anyone that can't maintain positive income ... absolutely.

Two of my friends have already watched all of their stock profits dry up ... and they can't afford to get out without that loss becoming permanent. I think it is permanent, and I think their principal investment is at considerable risk as well. On top of everything else ... their houses stand to be re-valued. They may pay less in taxes, but they gonna have nothing to borrow against either.

a reply to: machineintelligence

So the crash is coming, is it?

I dont disagree... what would be the best course of action to take, or not take? Anyone care to enlighten me?

I take this as a great sign!

The oiligarchy is coming to an end and we will see a technological revolution that will pave the way for a whole new paradigm in which we can get away from a profit driven mindset and move back towards harmony with the earth and humanity as a whole!

a reply to: Snarl

I just had a friend lose 10% of the value of his IRA since the beginning of the year due to the stock market's losses. He rolled it into a CD to try and not drown in the losses. I told him if it was mine I would consider some metals in his portfolio. I know gold is headed up since Russia and China are buying up gold big time.

a reply to: machineintelligence

I just had a friend lose 10% of the value of his IRA since the beginning of the year due to the stock market's losses.

He doesn't lose anything unless he sells.

He rolled it into a CD to try and not drown in the losses.

Oops.


You know, there are some pretty small "oil companies" out there. Small companies fold up on a pretty regular basis. Obviously the decline in oil prices is going to hurt small companies a lot more than large ones.

Big oil bailout on its way?

originally posted by: Ghost147
Wasn't there just a thread made within the past two or three weeks that hypothesized that this would happen? (not that it's difficult to spot anyway)

It's going to be an interesting... perhaps terrifying... year.

Yes, posting a link to the other thread posted by Gazrok..
www.abovetopsecret.com...

a reply to: Phage

I think this story is more about the banks exposure to loans they made to these failing oil companies than the failure of a bunch of at risk oil companies.

a reply to: machineintelligence

Would it be possible to generate a list of the names of these 42 companies? Are they small time outfits that were created to take advantage of the boom with the full intent of filing for bankruptcy during the bust? It happens in the oil business. It happens a lot.

Or were they support service outfits or workover companies that just couldn't cut it. Survival of the fittest works on several levels. The term " Oil Company" can mean a lot of things.

Who exactly is the originator of this video?

Simple way for them to fix that . Lower their profit margins to match . But , they want to sell less oil for a much higher price. That way , they dont have to invest as much in technology or future oil supplies. Win-Win situation. Now they are scrambling in panic to try to match the high profit margin they are used to.

a reply to: Phage

You know, there are some pretty small "oil companies" out there. Small companies fold up on a pretty regular basis. Obviously the decline in oil prices is going to hurt small companies a lot more than large ones.

As usual, you're correct. I deliver to one. It's basically just an office of about four people and a huge gas tank in the yard. I think evrryone just assumes that if there's oil involved then they must be billionaires, they're not...

a reply to: machineintelligence
Yes, I know. The guy in the video threw out some numbers that, when compared to the real estate bust, don't really amount to much. A few billion as compared to more than 4 trillion. Assuming that those exposures result in loses, the banks would say "ow" and that's about it.

Meanwhile, everyone (except the oil) companies, has more money to spent (or save).

Let em go under maybe just maybe we can switch to alternative energy instead of mucking about, Denmark and other nations are way a head of us that they are exporting excess energy.

a reply to: Spider879

Those countries are way way ahead of us period.

originally posted by: onequestion


Big oil bailout on its way?

No. The oil business can bail itself out should it need to, but it dosn't. They didn't go into this last boom cycle without being prepared for the bust.

It's their sandlot. They know how to play it. They've been doing it for decades.

a reply to: machineintelligence

The big banks are seriously exposed to loans to oil companies. The oil industry is taking down the biggest banks. It is like we are in the middle of a huge war and the resource providers are beating the crap out of the big banks. Not sure where this is all leading but it looks grim to me at this point for a lot of the world economy as this unfolds.

IT'S ABOUT TIME!

Perhaps we will finely see a financial crash and we can get rid of this phony currency that the Banks has imposed on us.

originally posted by: Phage
a reply to: machineintelligence
Meanwhile, everyone (except the oil) companies, has more money to spent (or save).

Uh no. Meanwhile...

originally posted by: twitchy
I'm economically ignorant, so I normally don't get too worked up over 'economic collapse', but recently I've seen some disturbing correlations in the news. There was two mile long traffic jam of oil tankers in Galveston TX recently, the Baltic Dry Index is way down, the Obama administration just announced they won't be renewing coal leases, the stock market is tanking, oil prices have dropped to 1980's era prices, rail shipping is down almost ten percent... the list goes on and on. Individually each of those would normally be cause for concern, but all at once is a little creepy.