Top Law Schools

Bunch of talking heads saying things like WTI may never climb above $100 per barrel again.

Anyone have aricles/guesses on how this will effect the Houston legal market? What generally happens to litigation when a downturn hits?

nothingtosee wrote:Bunch of talking heads saying things like WTI may never climb above $100 per barrel again.

Anyone have aricles/guesses on how this will effect the Houston legal market? What generally happens to litigation when a downturn hits?

I'm no expert, but don't people start suing eachother when they start losing money?

It might not be bad, even for transactional practices for the following reasons:

1) It is going to become more expensive to borrow money for exploration companies. This might force them to sell off assets.

2) While exploration and production of oil will take a hit, if there is also an increase in consumption, pipelines and refinement might prosper.

3) Money will need to find somewhere to go. It might go to midstream or downstream development in the oil energy, or it might go to other uses.

4) Oil companies will need to renegotiate some of their contracts that were made when oil was high.

It's not like the shit is necessarily hitting the fan, but it very well might. Proceed with cation. Joining an energy transactions / project finance practice doesn't look like the can't-lose prospect it did 2 years ago.