Originally Posted by
s00nr1
A couple of things here....Venture, you are probably my favorite contributor on OKCT, and being that I work in the weather business, I have an affinity for what you provide here and on Weather Spotlight. I will, however, say your continued vitriol of the energy industry is a bit frustrating.
With that being said, economically-speaking, we have already seen what could certainly be considered a "crash" across the industry. A collapse in the value of an underlying asset of nearly 50% in 6 months (WTI) certainly qualifies as such. Not to mention the complete destruction of market valuations of E&P's (see CLR's market cap being reduced some 60% since its high earlier this year and SD's by 75%). This type of decline will have far-reaching impacts, especially in the debt markets, where many producers have leveraged themselves to high-yield bonds they will no longer be able to meet payment obligations on.
Eventually, this will permeate its way through the economy, as the $15 per tank we all save on gasoline will not be able to make up for the pain felt in the energy and financial sectors as a result. To be rooting for a continued decline in WTI would be akin to rooting for trouble for OKC (and Oklahoma as a whole) and I, for one, am content with paying $2.75/gallon for gasoline if it means I don't have to worry about the local economy and the jobs of many in my area.
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