Oil companies in America have begun producing sufficient amounts of natural gas and crude oil to become one of the major exporters in the world. The oil resources on the gulf had always been problematic. While some kept violating the terms and conditions, some others simply were not stable enough to fulfill the demand. Governments, no matter whose government, had this dream of watching America become energy independent. It is 2019 now, and America has become energy independent. However, the massive boom of oil availability in the globe has meant that the prices have crashed down. This has left almost all the companies with no other option but to keep themselves alive with debts or by selling assets.
The oil companies in America have got no reason to like this energy independence of the country. Stock markets are hitting these companies pretty hard. Oil and Gas stocks used to constitute around 8.7 per cent of the S&P 500 some six years ago. Now, they’ve crashed to just 4.6 per cent. The last four years have seen around 175 oil companies filing for bankruptcy protection after totaling a debt of around USD 100 billion. It doesn’t stop there! more and more companies are expected to file for bankruptcy protection in the near future. Weatherfield International, America’s fourth leading oil services company, is all set to file for bankruptcy in the coming week. Stock prices only know one way travel, as they continue to keep falling. Parsley Energy has seen its share crash from USD 38 to USD 19 in just about three years.
Talking about the stock market, bank stocks surged significantly recently after the Federal Reserve cleared almost every bank it tested for CCAR. The banks are now increasing their lending capacity to promise higher dividends to investors who have started showing trust again in the banking sector.
Arnold Miller is pro at explaining and presenting the business-related complex concept in a simple way. He has the ultimate skill of effectively writing down the news related to business mergers, political & financial affairs, acquisitions, and the latest business trends being followed by the globally established organizations. He also takes part in various surveys and key interviews with professionals, industry experts, and various organizations. He is also known for his immense knowledge of economics. Arnold had gained around 5 years of experience as a Business Analyst in a well-reputed production firm before choosing the field of Content Writing.