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Oilfield Supply Owner: 'If Anybody Says They Are Making Money In The Oilfield, They Are Lying'

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Oilfield Supply Owner: 'If Anybody Says They Are Making Money In The Oilfield, They Are Lying'

Oil prices have solidified their position below $30 per barrel, marking what could prove to be an "endgame" event for many shale producers.

According to a report by Reuters, many U.S. independent oil producers need oil to trade at $40 to $60 a barrel to break event. The report added that when faced with the prospect of $30 oil, companies have few choices: bankruptcy, debt write downs in return for "deep" concessions, or fire sales of assets.

Jill Potts, an owner of Summit Oilfield Supply in Cuero Texas told Reuters that her business is reaching a "breaking point." The company sells valves, fittings, hoses and other equipment to share companies.

"If anybody says they are making money in the oilfield they are lying," Potts told the publication.

Posted-In: Jill Potts Oil oil companies oil prices Summit Oilfield SupplyCommodities Markets Media Best of Benzinga

 

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