Are you enjoying these low prices we are seeing at the pumps lately? Big oil companies and their employees do not share in our excitement. During the boom these large companies produced more oil and natural gas than the world is ready to buy. The flooded market has caused crude oil to trade below $50.00 a barrel for the first time in years, and could fall to almost $30.00 a barrel by the end of the first quarter. Just to put this in to perspective, in July of 2014, oil was trading above $100.00 a barrel.
The sharp and faster than expect decline has forced big oil companies such as Shell, BP PLC, and Chevron Corp to halt all new projects, and cut thousands of jobs across the world. The largest energy companies in the world are planning on cutting spending by up to 35% in 2015.
For a more in depth look at the slump the oil companies are facing, please click on the Bloomberg article above.