2015 was the year of the write-off for energy companies. As oil prices collapsed, the value of reserves held by oil producers also declined and prospects that were viable with oil trading above $90 a barrel are now no longer economic. With oil prices falling, the write-downs came thick and fast for the energy sector. Oppenheimer reports that during 2015 the top 30 publicly traded US-based exploration and production companies collectively booked $101 billion in asset impairments compared with only $23 billion of impairments during 2014 and $9.3 billion of impairments in 2013. Also see Andy Hall: Oil To Soar…
Oil Asset Impairments Soar – Hit $100 Billion In 2015, Up From $23B In 2014 And $9.3B In 2013
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk