Chevron has confirmed it will lay off thousands more, as it indicates, by cuts in out-year spending, that it expects no major rebound until at least 2018.
More and more companies in the oil patch keep writing off more debt. Per that, and per my reporting in smaller corners of the oil patch, smaller companies are starting to face tax lawsuits from county-level taxing entities.
Given that the government, if back taxes are owed, is by definition first creditor on a bankruptcy, various investors who pounded sand down an oil patch rathole may really be in trouble.
When the write-downs lead to dire actions, including forced sell-offs of equipment or other actions, that then ripples through the industry. It affects steelmakers and others. They, in turn, if already stressed, may approach their own bankruptcies. Or enter their own defaults on paying taxes, as I've already seen.
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