Friday, June 19, 2015
A quick note for a Friday afternoon. I have been reading lots of comments and headlines about bankruptcies, both actual and potential, in the oil and gas industry, particularly among companies focused on shale. There is no doubt that there will a huge fallout from low oil and gas prices, but some doomsayers are suggesting that the whole "shale industry" will collapse. To me, that's a terribly naive thought. Yes, many companies will go under and thousands will lose their jobs, but the oil and gas resources aren't going anywhere and the technology is only improving. Picking up from the ashes is what we as Americans do very well (something I think the Saudis don't fully appreciate). The players may change and the output may slow for a while, but the shale oil and gas industry be here for a long time.