/biz/ - Business & Finance

>>19850622
To add on to the point of shale companies being greatly vulnerable to world energy markets, it should be noted the significant amount of debt/spending these US oil companies take on where even $40 to the barrel is barely or not even a break even price. Many of them having P/E ratios exceeding 15+ on average. Just look at this image and see CHK who just filed for bankruptcy recently. Notice how high the price of oil would have to be for them to break even. They had no chance in today's oil market and were on the edge pre-COVID.

Had COVID-19 not come on the field that fucked with everyone's oil consumption. Russia and Saudi Arabia could have easily wiped significant portions of US oil/shale companies.

>>19725481
>$34 is fine for oil
Complete and utter delusion

Price of oil to break even for various companies.