Oil Boom Oil Bust Debt Problems
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Ted Sudol interviews Paul Mladjenovic at www.preciousmetalsinvesting.com about the energy sector. The oil boom fueled a lot of debt. Energy companies that pile on debt are now having problems servicing that debt. Saudi Arabia produced at high levels to cause difficulty for high cost producers like the shale oil producers. They now are forced to pump at high levels and low oil prices for revenue to meet their people’s needs. Add the nuclear deal with Iran which ends the sanctions and allows them to sell oil into a market that is already glutted. Now you have too much capacity chasing a diminishing world demand as the world’s economy slows. There are tankers full of oil idling offshore in search of a place to store their oil but the oil tanks on land are already filled to capacity.
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