A Crude Reality: Oil Tankers Drowning in Debt

In the debt-heavy oil transportation industry, lower transportation rates can seriously jeopardize a company’s solvency. We’re now seeing rates at $21,000 per day for the average very large crude carrier (VLCC), compared to Suezmax shipping rates of more than $70,000 per day in 2010. The rates are down 5.5% so far this year compared to previous estimates and they look to still be turning lower in the near future. The firms in this industry will have to become a bit more creative with financing to remain going concerns.

The oil and gas transportation industry is in the doldrums but there are many different ways to play the energy sector, and our analysts have uncovered an under-the-radar company that's dominating an attractive industry. This company is a leading provider of equipment and components used in  drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Austin Smith has no positions in the stocks mentioned above. Joel South has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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