and check out the mess developing in Canada "So, if too many...

and check out the mess developing in Canada

"So, if too many outfits are seriously over-levered for current prices, now what? How this affects different companies is as diverse as the companies themselves. The quickest way to de-lever balance sheets is to sell things—either shares or assets—to raise cash. But to whom? At what price? What if this can’t be done?"

"If the whole industry only has 43 percent of 2014’s cash flow, then in theory it can only carry 43 percent of last year’s debt. Of course, debt is not evenly distributed but the point is clear; the industry’s macro balance sheet is under severe stress. When Canada’s Big Six banks reported their earnings for the third quarter ended July 31, 2015 it was noted these lenders had total exposure to the upstream oil and gas industry of about $44 billion. Including other sources of debt (bonds, other banks, equipment leasing companies), this figure is likely only a fraction of total obligations. It could easily be $60 billion, probably much more. With so many private operators complete figures are impossible to compile."

http://oilprice.com/Energy/Oil-Pric...ill-Not-Come-Fast-Enough-To-Save-Alberta.html

Oil price futures aren't factoring in the risk associated with these debt blow up situations IMHO. Time will tell. DLS should out survive most.

Eshmun