The world is functioning on a war time footing in regard to oil companies. So, I think oil companies that are not already subsidized by their governments might be in the future in a similar way that Obama kept Chrysler and General Motors from going out of business during the Great Recession.
Though it is understandable why Saudi Arabia is driving prices down because ISIS, Russia and Iran threaten their existence, this is also affecting ALL oil companies on earth in regard to their bottom line. So, it is theoretically possible that oil prices will go to 20 to 25 dollars a barrel soon and stay there. However, Shale oil miners and drillers cannot stay in business at that price.
Only Saudi Arabia can break even at those prices. So, many non-governmental subsidized oil companies may go out of business during the next few years time. Or as many cannot find ways to borrow enough money to stay in business and break even.
So, those with the highest overheads likely will go out of business first and those with the highest debt loads and lowest profit margins. So, the next few years will be the great (Shake out) of oil companies worldwide.
Simultaneously, solar and wind are becoming more and more efficient. In fact, in many places on earth Solar is already more efficient than oil will ever be again.
Let me repeat that:
"In more places every day Solar is already more efficient than Oil will ever be again."
So, in some ways this also could drive the oil prices down for even longer than we might think. So, then Saudi Arabia is cornering the oil market for itself and driving everyone else out of business.
So, there are many ways to look at this because there are many moving parts in all of this ongoing.
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