• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 9 minutes Australia sues Neoen for lack of power from its Tesla battery
  • 13 minutes NordStream2
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day U.S. Presidential Elections Status - Electoral Votes
  • 4 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 12 hours Evergrande is going Belly Up.
  • 3 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 19 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 3 days Oil Price: does the security vacuum in the Middle East spook investors?
  • 4 days Ozone layer destruction driving global warming
The Harsh Truth Behind Europe’s Energy Crisis

The Harsh Truth Behind Europe’s Energy Crisis

Europe is facing soaring electricity…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

North American Oil And Gas Companies Continue To Go Bankrupt At $40 Oil

The rash of oil and gas bankruptcies in North America is set to continue for the remainder of 2020, a report by Haynes and Boone cited by Reuters shows.

After the coronavirus pandemic and oil price war set in at the end of the first quarter, the second quarter began with a wave of bankruptcies in the oil and gas sector in North America, according to the report.

There have been more than 18 producer bankruptcies in Q2 alone, according to Haynes and Boone—it is the highest quarterly figure since 2016 during the previous oil price crash. So far this year, 41 oil producers and oilfield service firms have sought bankruptcy protection.

Even without the coronavirus pandemic or the oil price war, the flurry of bankruptcies were to be expected, with companies holding junk-rated bonds defaulting on interest payments at record levels even in 2019, with more distressed companies in the energy sector than in any other, Michael Bradley, energy strategist with Tudor, Pickering, Holt said at the end of last year.

Of course, these distressed companies were all holding out hope that oil prices would recover in 2020.

Nothing could have been further from how this year is playing out.

This year has seen Chesapeake Energy, Diamond Offshore Drilling, Whiting Petroleum,

And even while prices have rebounded, the $40 per barrel oil price right now will not be sufficient to stave off doom for the debt-laden shale producer, Haynes and Boone said. $40 oil will not be enough for shale companies to make good on their hefty debt obligations.

Rystad Energy in April warned that as many as 530 U.S. oil companies could file for bankruptcy protection if oil had stayed at $20 per barrel.

By Julianne Geiger for Oiprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • John Doe on July 09 2020 said:
    Bound to happen.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News