The largest shale oil bankruptcy in years just happened.

If you own oil stocks, you'll want to read today's essay very closely. Because there's a good chance hundreds more oil companies will go bankrupt soon.

As you probably know, the oil market is a disaster. The price of oil has plunged 75% since 2014. In February, oil hit its lowest level since 2003.

Oil crashed for a simple reason: There's too much of it.

New methods like "fracking" have led to a huge spike in global oil production. Today, oil companies pump about 1 million more barrels a day than the world uses.

• Last year, America's biggest oil companies lost $67 billion…

To offset low prices, oil companies have slashed spending by 60% over the past two years.

They've laid off more than 120,000 workers. They've sold assets and abandoned projects. Some have even cut their prized dividends.

For many oil companies, deep spending cuts weren't enough…