• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 3 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 9 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 6 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 2 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 9 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 10 days Goldman Betting on Cryptocurrencies
  • 13 days Сryptocurrency predictions
China's Extraordinary Covid Protests

China's Extraordinary Covid Protests

Extraordinary protests across China appear…

Oil Crash Continues To Claim Bankruptcy Victims In U.S. Shale Patch

After a wave of bankruptcies in the third quarter, oil producers and oilfield services companies in the U.S. shale patch continued to file for protection from creditors at the start of the fourth quarter, law firm Haynes and Boone said in its latest tally, warning that the ongoing borrowing base redetermination season could result in more filings.  

Filings from exploration and production (E&P) numbered 17 in the third quarter, while another three firms filed for bankruptcy in October, according to Haynes and Boone data as of October 31.

“While the pace of bankruptcy filings for producers has slowed from the wave last summer, the current borrowing base season for oil and gas borrowers may put further pressure on some of the already financially stressed producers. Combined with the general lack of access to capital, additional filings are likely before 2020 comes to a close,” the law firm said.

In the oilfield services sector, 27 North American companies filed for bankruptcy in the third quarter, and nine filed for protection from creditors in October alone, Haynes and Boone’s data showed.

“Many smaller or highly leveraged OFS companies may not be able to hold on and avoid seeking protection of the bankruptcy courts,” Haynes and Boone said.

Between the beginning of 2015 and the end of October 2020, as many as 250 North American oilfield services providers filed for bankruptcy. Another over 250 filings in the industry came from E&P companies in North America, so more than 500 bankruptcies have been filed in the North American oil and gas industry since 2015, Haynes and Boone said.

More bankruptcies are expected by the end of the year, Rystad Energy said at the end of October.

If a WTI Crude average of around $40 per barrel and a Henry Hub price of $3 per MMcf persist in 2021, Rystad Energy expects 54 new E&P bankruptcies next year.  

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

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