Bankruptcy rife in US oil industry
Thirty-seven North American oil and gas producers have filed chapter 11 cases in 2015, according to New York Times sources, due to the collapse in oil prices. The paper says three-dozen companies have gone into bankruptcy court this year—and that might not be nearly enough to balance the glutted market.
All up nearly USD13.1billion in debt is involved with law firm Haynes and Boone LLP saying in an especially commission report that industry and economic indicators suggest more producer bankruptcy filings will occur before the year is out. After trading at an average price of USD92.91 a barrel in 2014, the U.S. oil benchmark has averaged around USD50 a barrel this year.
Goldman Sachs Group Inc. reiterated its view that oil prices could fall as low as USD20 a barrel in the coming months if the glut of crude and refined products overwhelms storage capacity.
The biggest bankruptcy filing by a producer this year came from KKR & Co.’s Samson Resources Corp. in Sep, with USD4.3 billion of debt, according to Haynes and Boone.