"Every company I know of, including Chevron, Exxon, BP, Apache, Anadarko, every company, you name it. They are all exceeding their cash flow. That's not sustainable. Something's got to give," he said. Gheit said the industry will have to look harder for cost cuts after already trimming spending, shutting down projects, laying off staff and trimming dividends.
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The agency lowered its 2016 WTI forecast by $8 to $54 per barrel, and this year's by $6 to $49/bbl. (And so the assets of the E&P companies are worth 15% less)
http://oilpro.com/post/17462/oil-perfect-storm-now-churning-and-us-government-has-adjusted-its
The credit terms are based on the reserves and the oil prices in the foreseeable future. The credit terms will be reevaluated for all oil and gas firms. The oil and gas in the ground is simply not worth as much at $45 per barrel vs. $100 per barrel.
I have read that several times before where many of the smaller companies (actually all companies) are expecting large reductions in borrowing capacity after the October bank review. The banks will have no choice but to reduce credit lines because they are mostly overextended already by trying to get their share of the shale oil boom. Times were great when companies could generate large cash flows for their stockholders. The cash is dwindling with no alternative source on the horizon so yes it can only get worse. Reducing CAPEX is only a short term fix.
That's what she said.
http://finance.yahoo.com/news/oil-collapse-couldnt-come-worse-104202263.html#