One-third of U.S. oil companies could face bankruptcy

[marmar]

(MarketWatch) Crude-oil prices plunged more than 5% on Monday to trade near $30 a barrel, making the specter of bankruptcy ever more likely for a significant chunk of the U.S. oil industry.

Three major investment banks — Morgan Stanley MS, -0.74% , Goldman Sachs Group Inc. GS, -0.81% and Citigroup Inc. C, +0.02% — now expect the price of oil to crash through the $30 threshold and into $20 territory in short order as a result of China’s slowdown, the U.S. dollar’s appreciation and the fact that drillers from Houston to Riyadh won’t quit pumping despite the oil glut.

As many as a third of American oil-and-gas producers could tip toward bankruptcy and restructuring by mid-2017, according to Wolfe Research. Survival, for some, would be possible if oil rebounded to at least $50, according to analysts. The benchmark price of U.S. crude settled at $31.41 a barrel, setting a 12-year low. ................(more)

http://www.marketwatch.com/story/plunging-prices-could-force-a-third-of-us-oil-firms-into-bankruptcy-2016-01-11?dist=lcountdown

[Human101948]

1. We'll have to raise those taxpayer subsidies!

Oil is the lifeblood of real Americans!

[jonno99]

2. It's certainly the lifeblood of most commuter, rail & truck traffic - "real" Americans or not...nt

commuter, rail & truck traffic