The drop in oil prices has caused issues for marginal operators throughout the US. Those late to the US oil land grab had to pay top prices for acreage outside the core. Many of those operators had to accumulate significant debt with the expectation oil prices would stay around $100/bbl. Most hedged oil and natural gas prices just in case prices pulled back. Many learned the hard way in 2008 when oil prices dropped quickly. Smaller operators with significant leverage almost went out of business. This motivated many to maintain large hedge books. This is one of the major reasons our current oil glut has lasted this long. Operators continue to produce and realize oil prices between $50 and $60/bbl.
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|