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posted Jan 14, 2016, 7:56 AM by PHS Warrior Beat
By: Tyler Nixon

     According to the Wall Street Journal, bankruptcy seems inevitable for a fair share of the U.S. oil industry. Prices drastically dropped more than 5% earlier this week making it worth just about $30 a barrel. This crisis comes after China’s economic slowdown which seems to have impacted several nations across the globe.

     It was also reported that some of the nation’s notable investment banks, including Morgan Stanley, are expecting further damage and a drop in prices from the $30 threshold to the $20 realm.

     According to Wolfe Research and other sources, about one third of American oil-and-gas producers could be headed towards bankruptcy by the halfway point of 2017 with the way conditions are now. The Wall Street Journal also reported that the recent price of U.S. crude oil reached its lowest point in 12 years. North American oil-and-gas producers are losing about $2 billion every week because of current prices. At the time, there is no evident solution to the problem.

Source: WSJ 1/13/2016, A1/A2 Uploaded 1/14/16 Edited By Paige Hughes