If shale is so good then why are the oil stocks so bad? Downgrades across the energy sector raise real questions about the ability of shale producers to operate with prices in the low $40s per barrel. It also questions the perception that shale operators have become so efficient that they can operate at almost any price. While the downgrades are coming fast and furious, it is probably a sign that the market has bottomed out.
Crude oil prices have plunged far below what the oil fundamentals might suggest and even hardened bears are starting to question this selling madness. The price drops and current levels will destroy the myth that U.S. oil production will rise regardless of the price and we are already seeing downgrades of those energy stocks across the sector. Downgrades are coming fast and furiously. Barron’s reported that Seaport Global Securities downgraded 51 energy-related stocks in the exploration and production arena, as well as offshore spa