US Shale Meltdown, Oil & Gas Companies Continue Closing, Rig Count Drops 40% Investors Lose Billions Video by Silver Report
US Shale has been hit hard in this unprecedented demand collapse. Many of these companies have been saddled with excess debt for years and have been banking on a return to higher prices. What many didn’t prepare for is the bottom to fall out and now they have been forced to curtail production.
Last week there were several attempts to bring the US Shale companies to an agreement on production cuts and they were unable. Price’s historic collapse last week has forced their hand as the rig count in the US has declined dramatically 40% of US oil drilling capacity has been idled. There was a lot of excitement about the production cuts and we noted at the time the big issue was that demand had evaporated. Many oil market analysts are now warning this is about to get a whole lot uglier as they anticipate many more US oil rigs being shut down.
In a sense, it is the only way to cause prices to rise and storage is running out. Goldman Sachs was warning within 3 weeks there will be no place on earth to store this oil. So far investors have lost billions trading oil after is historic plunge below zero last week.