I bear good news: We’ve made it to the third quarter.

The second quarter was one for weeping and gnashing of teeth. In the second quarter, WTI fell into the teens as demand plummeted and supply surged. Producers battened down the hatches as the two collided in a perfect storm. Inventories were built. Nations, cartels and independents were shut in. Oilfield services were put on ice. The second quarter was a massive hurricane of epic proportions only to be survived.

Not all did, as we saw the likes of Whiting Petroleum, Extraction Oil & Gas, Ultra Petroleum and Unit Corp. fall to the winds of bankruptcy during that period. A total of $10.5 billion in E&P debt as of May 31 has succumbed to the courts, according to law firm Haynes & Boone. The oilfield services sector has fared worse: $14 billion in bad debt year-to-date. More is sure to come.

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