With bankruptcy looming over energy companies in the wake of plummeting oil prices and soaring bond yields, executives across the shale sector are deliberating new ways of survival.

Although the long-term impact on demand prices is still unclear, the unprecedented uncertainty of the upstream sector is a strong indication that companies must act quickly in order to survive the storm, according to Basil Karampelas, managing director and head of the Houston office at advisory firm SierraConstellation Partners LLC.

“The prices of crude have collapsed to a point where it’s hard to imagine any of the producers—even the most successful ones in the Permian—being able to generate substantial cash flows,” Karampelas told Hart Energy.

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