Economy 52,926 Posted May 11, 2020 Share Posted May 11, 2020 https://www.google.ca/amp/s/oilprice.com/Energy/Natural-Gas/Will-Shale-Giant-Chesapeake-Go-Bankrupt.amp.html Oil Giant Chesapeake that also went big into shale is under a financial stress to the point that the company is now considering whether it may have to file for bankruptcy US Shale companies going bankrupt is a common thing, every year dozens of them do. In 2019 for example over US 50 Oil Companies went bankrupt and in 2020 with the crash the bankruptcies could be in the hundreds However bankruptcy is far more rare among larger companies energy companies which tend to have more efficient cost structures and diversified business such as refining demonstrating the degree of this crash. Link to post Share on other sites More sharing options...
ice bear 1 Posted May 11, 2020 Share Posted May 11, 2020 hey ur back! welcome ice heard one side from above Link to post Share on other sites More sharing options...
elijahfan 27,499 Posted May 11, 2020 Share Posted May 11, 2020 It's fascinating to see all those big companies making billions that couldn't even hold 2 months.... Link to post Share on other sites More sharing options...
Economy 52,926 Posted May 11, 2020 Author Share Posted May 11, 2020 13 minutes ago, elijahfan said: It's fascinating to see all those big companies making billions that couldn't even hold 2 months.... People don't have a very accurate notion of how profit margins work Revenue is not the same as profit. If a company made $20 Billion in revenue but had expenses of $19 Billion they only have a $1 Billion profit or a 5% profit margin (which is pretty standard in many industries although it does vary by sectors and by company) A 5% profit margin for example means if suddenly you had no revenue and had to go off of savings, 1 week worth of expenses would burn 20 weeks worth of profits. So during Extreme economic crashes where prices or demand collapses, companies across all kinds of sectors can have their money dry up very very quickly It's also important to note that large corporations operate on a huge scale with tens of thousands of employees Their profits that sound massive sometimes may only be equivalent to a few weeks worth of expenses Some large companies are guilty of not saving up more during the good times and that's irresponsibility on their part. That being said, almost any business big or small always has to battle to compete and stay profitable. Few are in a position to not severely struggle with even just a few months of sharp drop in revenue Many Oil companies are slashing to executive pay or cutting dividends from stocks. Something u rarely see but right now they are desperate Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted May 11, 2020 Share Posted May 11, 2020 Oul contraction is normal after a huge growth bubble... But...covid shut down means only the top dogs will get thru the worst of it... Predictions for 2021 to be a boom restart seem the most realistic to me.. Watch the rebound when a legit vaccine is announced... like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Leblanc 2,494 Posted May 11, 2020 Share Posted May 11, 2020 41 minutes ago, Woolfsmck said: Watch the rebound if a legit vaccine is announced... Unfortunately just being realistic Coven Season Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted May 11, 2020 Share Posted May 11, 2020 5 minutes ago, Qiyana said: Unfortunately just being realistic Yeah. No vaccine = weak economy like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,926 Posted May 11, 2020 Author Share Posted May 11, 2020 40 minutes ago, Qiyana said: Unfortunately just being realistic They should be able to tho. It's more a question of how long. Fortunately if not eventually here immunity will help if a vaccine fails to come about since it seems like u do indeed keep immunity at least for a while Link to post Share on other sites More sharing options...
Royksopp 1,791 Posted May 11, 2020 Share Posted May 11, 2020 didn't u have a dramatic leaving thread? ot: good for them! Link to post Share on other sites More sharing options...
blankpaper 21 Posted May 11, 2020 Share Posted May 11, 2020 12 minutes ago, Royksopp said: didn't u have a dramatic leaving thread? ot: good for them! He was gone for 3 weeks and the leaving thread said it wouldn’t be permanent anyway we’re glad you’re back @Economy reality’s tight if the music is right Link to post Share on other sites More sharing options...
Leblanc 2,494 Posted May 11, 2020 Share Posted May 11, 2020 25 minutes ago, Economy said: They should be able to tho. It's more a question of how long. Fortunately if not eventually here immunity will help if a vaccine fails to come about since it seems like u do indeed keep immunity at least for a while Well we don't have a vaccine for SARS and we had 18 years to come up with that. And this virus is quite closely linked with that. I get other factors could be at play but we can't just assume we can make successful vaccines for everything. Also I haven't seen anything to convince me that immunity is something we could rely on. Sadly I really think we gunna have to find a new normal. I'd love to be proven wrong though Coven Season Link to post Share on other sites More sharing options...
StarstruckIllusion 53,580 Posted May 11, 2020 Share Posted May 11, 2020 2 hours ago, elijahfan said: It's fascinating to see all those big companies making billions that couldn't even hold 2 months.... bc they’re dumb and don’t wanna save for a rainy day... but regular people? yeah that’s what we gotta do. n e ways lets move on to green energy Link to post Share on other sites More sharing options...
ALGAYDO 35,219 Posted May 12, 2020 Share Posted May 12, 2020 6 minutes ago, StarstruckIllusion said: bc they’re dumb and don’t wanna save for a rainy day... but regular people? yeah that’s what we gotta do. n e ways lets move on to green energy Not to be a pessimist but a lot of people/companies would rather risk tanking the entire economy before even thinking about going green lol this isn’t gonna be a wake up call of any sort. Link to post Share on other sites More sharing options...
StarstruckIllusion 53,580 Posted May 12, 2020 Share Posted May 12, 2020 1 minute ago, ALGAYDO said: Not to be a pessimist but a lot of people/companies would rather risk tanking the entire economy before even thinking about going green lol this isn’t gonna be a wake up call of any sort. I’m talking about starting a green economy... you can make money off of developing future energy tech. Like that time someone got rich off of creating solar panels? more that, less oil. Link to post Share on other sites More sharing options...
Adakam 2 Posted May 12, 2020 Share Posted May 12, 2020 26 minutes ago, Qiyana said: Well we don't have a vaccine for SARS and we had 18 years to come up with that. And this virus is quite closely linked with that. I get other factors could be at play but we can't just assume we can make successful vaccines for everything. Also I haven't seen anything to convince me that immunity is something we could rely on. Sadly I really think we gunna have to find a new normal. I'd love to be proven wrong though Well, they stopped trying with the SARS1 vaccine because it wasnt necessary anymore, that pandemic pretty much died on its own. So with no demand, everyone stopped trying. Link to post Share on other sites More sharing options...
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