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Zombies in the oil fields

oil-zombies

Unintended consequences of Saudi Arabia selling cheap oil, presumably at the behest of the US to hurt Russia and Iran, are cratering oil investments worldwide, including in the US. This will destabilize financial markets and cause thousands of jobs to disappear, at least for a while. Then when supply drops because less oil is being produced, the inevitable snapback in price will occur.

Goldman Sachs found almost $1 trillion in investments in future oil projects at risk. They looked at 400 of the world’s largest new oil and gas fields — excluding U.S. shale — and found projects representing $930 billion of future investment that are no longer profitable with Brent crude at $70. In the U.S., the shale-oil party isn’t over yet, but zombies are beginning to crash it.

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