Report: Credit issues ahead for energy sector

Report: Credit issues ahead for energy sector - The Business Review (Albany)
“The debt capital markets are effectively closed for speculative-grade rated issuers, and asset sales are becoming more difficult to execute. Supermajors and large independents still enjoy strong liquidity positions as a whole, but smaller producers are unlikely to have the means to purchase properties, even at distressed prices,” the report says."

“To make matters worse, unless prices improve from current levels, we expect that commercial banks could soon begin decreasing the borrowing bases that govern companies’ senior secured revolving credit facilities by 15 percent to 20 percent.”

Boy can I tell you a story about this little debacle. But enough about the past... let us think future thoughts. I think that the cliche about negative thinking begetting more negativity has a lot of truth to it. Never is it that simple, but the power of positive thinking cannot must not be discounted.