Will the crumbling oil industry hurt your bank account?

Oil prices continue to fall, leading several oil company to close their doors and file for bankrupcy.

The lower cost of crude oil has resulted in the oil industry trimming the fat from company payrolls across America. As prices continue to crash, one can't help but ask what this means for the United States economy.

LOS ANGELES, CA (California Network) - One by one, oil companies across America have gone belly-up due to the low cost of crude oil, which CNN Money reports to be below $30 a barrel for the first time in thirteen years.

Barclays commodities analysts wrote, "The fundamental situation for oil markeys is much worse than previously thought."

This means several oil companies have declared bankrupcy, leaving billions in loans unpaid.
CNN reported Wells Fargo at $17 billion in the hole for the oil and gas sector, while JPMorgan Chase reports $124 million has been set aside to cover potantial losses.

Marianne Lake, JPMorgan's chief financial officer, told CNN analysts on Thursday, "As the outlook for oil has weakened, we would expect to see some additional reserve build in 2016."

Citigroup has retained $300 million in loan loss reserves, with spokesmen stating, "oil prices are likely to remain low for a longer period of time."

Should oil remain around thirty dollars per barrel, Citi reports it will lose $600 million of energy credit in the first half of 2016, but the number could double to $1.2 billion of oil drops below $25 a barrel and remains at that price. Since 2015, 42 North American oil companies have filed for bankruptcy while half the energy junk bonds remain "distressed."

With the price of gas getting ever-lower, the closure of oil companies become more populous, but what does it matter so long as the public can continue to enjoy the constant consumption of a non-renewable energy source?

The public relies on oil on a disgusting level. Case in point, so desperate and dependent are we on oil that we are lifting sanctions on Iran, which will lead to 500,000 barrels of oil from the Middle Eastern country.

So what does that mean for the everyman? With banks and oil companies going under and remaining "distressed," who is going to bail them out? Will it be forced on working folks already taxed to death to support social programs and illegal immigrants?

Are honest taxpayers going to be forced to bail out companies that should, by the laws of capitalism, extinguish and disappear into oblivion while the rest of the world moves on? 
Perhaps. After all, it wouldn't be the first time we've bailed out failing companies.

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