Feb 23, 2016 12:42 PM

After Price Shock, Oil Industry Rebalances

Collapsing oil prices have clearly caused financial disruptions. There will likely be bankruptcies and credit-crisis events among over-leveraged and high-cost producers.

However, this may actually turn out to be a boon for better-capitalized oil companies that can use their cash to buy distressed competitors and reserve assets, rather than explore greenfield sites for new sources of oil.

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