U.S. shale oil companies are sustaining production even as oil prices crash. Four words: desperate for cash flow. The reasons are sunk costs, overhead and high debt levels. We can thank the Fed’s zero interest policies for much of this. Years of incessant easing have not smoothed the business cycle, but made it more extreme, both in expansion and contraction. For more see: The Fed isn’t oil”s friend.
Here is a direct video link.
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