Cyc2R, Just as a sideline, as I have been inves
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Just as a sideline, as I have been investing in Oil for some time, you are right, shale operators will suffer enormously. Some of them where already in dire straights even before the oil war between Russia and Saudi started in Vienna few days back.
But, in a way, is a "problem" of their own making. USA production increased from 5.7 M bbls/day in 2011 to12 M bbls/day today.
This put down pressure in the prices until Saudi Arabia started their oil first "oil war" against USA in 2014 not giving up market share and deciding that low oil prices offered more of a long-term benefit (and increased production). This is when the shale operators problems started.
Fortunately some part of this sector is now in hands of majors which can withstand some of the chock, but it will not be "nice" for smaller operators.
A good number of defaults or a government bailout is in the works ...
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