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Discussion Starter #1
• The rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt after this week's Chapter 11 filings by Midstates Petroleum (NYSE:MPO) and Ultra Petroleum (NYSE:UPL).
• According to Reuters data, the number of U.S. energy bankruptcies is closing in on the staggering 68 filings seen during the depths of the telecom bust of 2002 and 2003.
• "I think we'll see more filings in the second quarter than in the first quarter," said Charles Gibbs, a restructuring partner at Akin Gump in Texas.
 

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This is crazy considering all signs are pointing toward an increase in demand for crude oil. If some of these businesses can survive, they are going to be poised to make some serious profits after people realize that OPEC alone can't answer the world's demand.
 

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Discussion Starter #3
• Three oil and gas bankruptcies this week - Chaparral Energy, Penn Virginia (NYSE:pVA) and Linn Energy (NASDAQ:LINE) - is showing that crude at $45 a barrel isn't even enough to rescue energy companies on the verge of collapse.
• According to law firm Haynes & Boone, 130 North American oil and gas producers and service companies have filed for bankruptcy since the start of 2015 owing almost $44B.
• More energy firms are also nearing default, including Breitburn Energy Partners (NASDAQ:BBEP) and SandRidge Energy (NYSE:SD).
 

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All perfectly according to plan. This is the payoff the Saudis earned by dumping their crude so cheaply. They can dial in these bankruptcies exactly how and when they like.
 

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This is hard for me, because I can clearly see a future without oil (no, not even a little bit). So what is shocking to me is just how tied to oil companies on the stock market seem to be. Consumer spending is up. Jobless rates are down. Economies are building back. Technology is evolving as it always has. Yet everything is getting beaten down because of concerns over oil.

Is it that people lack vision? Or are they just naturally pessimistic?
 

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This is hard for me, because I can clearly see a future without oil (no, not even a little bit). So what is shocking to me is just how tied to oil companies on the stock market seem to be. Consumer spending is up. Jobless rates are down. Economies are building back. Technology is evolving as it always has. Yet everything is getting beaten down because of concerns over oil.

Is it that people lack vision? Or are they just naturally pessimistic?
Reality is our economy is over 90% dependant on

1. Oil
2. Interest
3. Food production

and those three are inter related.

Tech industry, whats left of retail and manufacturing are very very very small pieces of our economy.

And they continue to become smaller.

This means we are a one horse economy, if Reagan would have not made the huge error in introducing the
"oil marketplace"
where middlemen and their mood dictate cost not market forces we might have a much free'r country with much less dependance on oil appearances.

It is very possible we may not have even had a banking crisis, which was also related to oil.

Ah well, like the illegal and unnecessary grey market car laws
nobody seems willing to kill the dead horse and move on.
 

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Discussion Starter #7
Oklahoma oil producers to lose tax rebate

• The Oklahoma Senate has passed a bill suspending a tax incentive for the oil industry that OilPrice.com thinks will force many smaller producers out of business.
• Oklahoma lawmakers voted to eliminate a rebate for the worst-performing wells in order to help plug a $1.3B budget gap; while barely utilized during the boom years, the cost of that tax credit grew to more than $130M last year as sinking prices made more wells unprofitable.
• Oklahoma's leading oil and gas producers include CLR, CHK, DVN, MRO and NFX.
 
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