One Third of U.S. Oil and Gas Industry at risk of going Bankrupt

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Why 175 Oil And Gas Companies Could Go Bankrupt This Year

About a third of U.S. oil and gas production and exploration companies are at high risk of going bankrupt in 2016, according to a new report.

The report, published Tuesday by consulting and business services firm Deloitte, looked at more than 500 oil and natural gas exploration and production companies worldwide. It found that 175 of the companies — or nearly 35 percent — were at high risk of going bankrupt, due largely to low oil prices. Together, these companies have more than $150 billion in debt.

“2016 will be the year of hard decisions. We could see [energy and production] bankruptcies surpass Great Recession levels as companies struggle to remain solvent,” John England, vice chairman and U.S. oil and gas sector leader for Deloitte, said in a statement. “Access to capital markets, bankers’ support and derivatives protection, which helped smooth an otherwise rocky road for the industry in 2015, are fast waning.”

Oil prices have dropped over the last few years, and are now down to about $29 a barrel for crude oil. The drop in oil prices has caused a slowdown in some oil-producing states. North Dakota, for instance, has been riding a boom in oil production for the past eight or so years — now, new drilling is getting scarcer, and the man camps that popped up to house oil field workers are starting to empty.

“Those communities out there were drinking out of a fire hose,” Nancy Hodur, a research assistant professor at North Dakota State University, told the New York Times of North Dakota towns that had been built up around drilling in recent years. “A lot of those communities would come right out and say that pace of growth isn’t good, isn’t sustainable. They’re still playing catch-up.”

Why 175 Oil And Gas Companies Could Go Bankrupt This Year | ThinkProgress
 

CDNBear

Custom Troll
Sep 24, 2006
43,839
207
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Ontario
Re: One third of U.S. Oil and Gas Industry at risk of Bankruptcy

Wow, way to go Captain Obvious.

 

damngrumpy

Executive Branch Member
Mar 16, 2005
9,949
21
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kelowna bc
Re: One third of U.S. Oil and Gas Industry at risk of Bankruptcy

Serves them right many of these companies own the tankers that bring in the
cheap oil from the Middle East. It is time to say goobye to WTO and any group
that does not favor North America.
We have the resources we should dictate the terms
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
39,778
454
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Unfortunately, that is not going to happen and we will only exacerbate the problem by joining the TPP.
 

CDNBear

Custom Troll
Sep 24, 2006
43,839
207
63
Ontario
Re: One third of U.S. Oil and Gas Industry at risk of Bankruptcy

It is time to say goobye to WTO and any group
that does not favor North America.
Flossy will get mad at you for saying that. His GW buddies favour pretend developing nations over North America.

Unfortunately, that is not going to happen and we will only exacerbate the problem by joining the TPP.
Really? That all you took from that?

Wow, you're dumber than I thought.
 

petros

The Central Scrutinizer
Nov 21, 2008
108,893
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Low Earth Orbit
Get Trudeau to bail them out like GM, FIAT/Chrysler, Canadian Jap automakers as Harper did to save ON from completely failing.

Because I think he's feeding off Avro.

Fagro... Another self-induced brain cripple. Maybe they could team up and both do drywall?
 

CDNBear

Custom Troll
Sep 24, 2006
43,839
207
63
Ontario
Get Trudeau to bail them out like GM, FIAT/Chrysler, Canadian Jap automakers as Harper did to save ON from completely failing.
Kumi, Honda and Toyota didn't need saving, neither did Ford. Ford didn't need saving because they adopted a Honda/Kumi manufacturing model.

Fagro... Another self-induced brain cripple. Maybe they could team up and both do drywall?
If you watch Flossy, his balls puff up when Avro is around. It's funny.
 

MHz

Time Out
Mar 16, 2007
41,030
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Red Deer AB
So what? Would you rather they become bloated like Provincial and Federal Governments and then be less efficient overall to boot. (city workers are included if you need a role model)