Rock bottom is getting closer - oil falls to below $30 a barrel

Oil takes another tumble, sinking below $30 a barrel Friday and is trading at its lowest level since 2003.

Oil took another plunge sinking below $30 a barrel on Friday, trading at its lowest level since 2003.

The sharp slide in crude from over $100 a barrel in the summer of 2014 has weakened energy company profits, making it much harder for them to pay off debts and keep a full workforce.

Energy companies had steep declines in early trading Friday.

Tulsa-based Williams is in the process of being acquired, and fell more than 15 percent at Friday's open. Stock rose slightly by midmorning with a total decline of about 6 percent.

Devon was down more than 7 percent, reaching a 52-week low at $24.06. Also reaching a 52-week low was Chesapeake, the Oklahoma City company that cut 15% of its workforce in September. Chesapeake was down 8 percent, trading at a frighteningly low of $3.38.

While upstream companies are taking the hardest hits –laying off workforce, sharply cutting expenses and many capitulating during the downfall of oil– the midstream sector seems to be holding on tightly. The oil has to move, but some say with the drastic price plummets, it will slow down, and storage tanks will continue to reach capacity as companies wait for the price to go up.

"Oil is always getting burned at the pump or in our houses, so it has to move," said Jason Farque, co-owner and VP at CDI, a Broken Arrow, Oklahoma-based midstream equipment company. "Our business was off 20 percent in 2015, most of that happened in early 2015. We expect oil prices to rise slowly over the course of 2016.

"It's hard to predict the future of midstream. However, our products and services are a requirement for the movement of oil and gas, so we feel fortunate to be in midstream," Farque continued.

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