Posted on 10/28/2016 8:03:57 AM PDT by Lorianne
Fewer and fewer oil exploration and production companies are declaring bankruptcy.
But more oilfield service companies are.
So far this month, only one North American E&P firm filed for Chapter 11 protection, according to data released on Tuesday by the Dallas law firm Haynes & Boone. That’s down from two in September, three in August and four in July.
But it’s been an especially tough few months for service companies. As crude prices began crashing in 2014, drillers started idling rigs. That led to fewer jobs for the companies that make their money helping producers pump oil and gas. Moreover, when producers did hire service companies, they often forced them to heavily discount their rates.
Eight service companies filed this month. Seven filed last month, and eight again the month before. Almost 50 have filed in the last six months, half of the 108 over two years.
In total, 213 North American oil and gas companies have now filed for bankruptcy since the start of 2015, listing more than $85 billion in debt.
The most recent exploration firm: the private oil and gas company Mountain Divide, based in Montana, filed on Oct. 14, and listed $83 million in debt.
On the oilfield services side, Houston-based Key Energy Services filed on Monday, with more than $1 billion in debt.
(Excerpt) Read more at fuelfix.com ...
Boom / bust in commodities. Who ever heard of such a thing?
How old were most of these companies? When oil prices spike again, how many will be reformed under new names? Gee, it’s almost as if the bankruptcy laws were written to allow people to take reasonable risks starting new businesses.
America can save these guys with $100.00 oil and $3.50 gas.
Sounds like a problem begging for a liberal solution.
and thanks to Obama the Q3 GDP rises to 2.9% ,D’oh ,on paper only
Ups and downs in the oil/gas industry are pretty common
occurances every few years I believe.
Isn’t this OPEC’s plan?
11. Lift the restrictions on the production of $50 trillion dollars’ worth of job-producing American energy reserves, including shale, oil, natural gas and clean coal.
Our present shale oil policies reflect the predilections of a US president fanboi scraping and bowing to his Saudi overlords.
Not that that’s anything new for Wash DC.
Yup. The banks write off a little of the debt, someone buys up the leftover equipment at bargain prices, and then waits for the oil price to rise.
90% of which was created out of "thin air" to begin with, complements of fractional reserve banking !!!
Where is Pelosi asking for relief for these greedy oil companies?
With the costs of food, housing, insurance, and just about everything else getting higher and higher, the relief of lower prices at the gas pump has helped millions of U.S. families. Helped tremendously.
Chapter 11 is reorganization, not going out of business.
The Saudi grip has been broken, their attempt to break America’s energy industry has failed. They are looking for a way out of what they have created now.
and without which fractional banking no fracking would ever have factored into factory data.
and without which fractional banking no fracking would ever have factored into factory data.
Because they're are fewer and fewer of these companies
If Clinton becomes president i think we will see much more bankruptcy as that is how the socialists gain control, bankrupt the businesses and then take more control.
Strategically it would actually be worth subsidizing these companies to utterly and finally destroy OPEC and the middle easts grip on oil. Trouble is after you destroy OPEC weaning the US companies off the taxpayers tit.
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