Dan Dicker, Energy contributor at TheStreet.com, talks to Jim Cramer about the melting away of oil prices and the related oil stocks. Many of these stocks are well below levels that were reached in the springtime of 2014, when oil was reaching it’s lows in the low $40’s. Dicker believes that the oil sector must experience a wide scale consolidation and that many of the large cap independent exploration and production companies will need to find a merger partner or be outright bought by one of the cash rich super majors like Exxon Mobil (XOM) or Chevron (CVX). The relative low prices in shares of the independent U.S. producers will begin to prove tempting. Dicker cites Hess (HES), Continental Resources (CLR), Chesapeake Energy (CHK) and EOG Resources (EOG) as prime takeover candidates. A big buyout or two would signal to Dicker that the long bust cycle in oil is nearing its end.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
