Zombies Invade the U.S. Oil Patch

Keith Kohl

Written By Keith Kohl

Posted December 10, 2015

When it comes to oil, the decision to invest seems to be pretty clear: when there’s high demand and not enough crude to fill those needs, that decision is even easier for oil companies to invest in new projects… That’s just smart business.

But things don’t always go as planned…

Back in 2014, there were a lot of projects slated to start in 2015. Unfortunately, the problem was that these projects became completely unprofitable thanks to the steep decline in crude prices over the last eighteenth months.

Oil downturn

In fact, roughly $930 billion worth of future projects and investments would be rendered useless.

The market quickly become oversupplied with the new flood of oil from tight plays, and China—which normally consumes staggering amounts of oil—actually declined.

And to top things off, Saudi Arabia remained stubborn in helping stabilize the global crude market.

Now that oil is struggling to find support around $40 per barrel, growth in U.S. tight oil may be curbed as much as 40%.

Interestingly, the news hasn’t gotten much better…

You see, Saudi Arabia has once again exerted its muscle inside OPEC, resulting in the oil cartel’s recent decision to maintain output (and even raise the production ceiling), hurting just about anyone in the oil game.

And in the wake crude rout that has persisted over the last year and a half, all U.S. oil companies can do is try to survive. Truth is, most of these companies can’t afford to create new wells, and are struggling under mountains of debt.

These “oil zombies” aren’t leaving any time soon, and their numbers will inevitably grow during the low oil price environment.

To read more, simply click here for the Rigzone article.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basicCheck us out on YouTube!

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

Angel Publishing Investor Club Discord - Chat Now

Keith Kohl Premium

Introductory

Advanced

Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.