How Bad is the Oil Industry Hurting?

I have been thinking about this because I was lucky not to put any money in one of those Texas energy companies. A couple of years ago oil was selling for well over a hundred dollars a barrel and this friend of mine wanted to put his money in this company that provided oil field services. His brother in law was involved in the deal. I have no idea how it worked out for them, but it is obvious that a lot of those guys are hurting right now. I think that the other day when I saw the stuff that was going on in the news. I think that at one point oil was down to around fifty five dollars per barrel and the apparent reason is that the Saudis have decided that they are going to take the price down to a place where the most expensive producers of petroleum.

Of course in the U.S.A and Canada there are a lot of oil and gas producers who use high cost methods, like hydraulic fracturing of fracking. That is not that surprising, because in the long term the Saudis can produce oil for less than we can and if they can drive out other producers that eventually works out for them. Of course they expect to get the price back to a hundred dollars a barrel in the near future I am sure, but it is going to be a near future that is probably more than a year or so away. Until then it is obvious that a lot of people are going to benefit and a lot of other people are going to be hurt by it. In Venezuela, Nigeria, Russia and countries like that, this is going to lead to a whole lot of problems for a lot of people.

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