fbpx
Wednesday, September 30th, 2020
Home » Money » U.S., Canadian oil company bankruptcies surge 50% in 2019: report

U.S., Canadian oil company bankruptcies surge 50% in 2019: report

Reuters, January 24, 2020

HOUSTON (Reuters) – The number of oil and gas company bankruptcies in the United States and Canada rose 50% in 2019 over the previous year, and is likely to increase as a slide in energy prices continues to shake producers Dallas law firm Haynes and Boone said in a report released on Wednesday.

U.S. and Canadian oil and natural gas exploration and production company bankruptcies totalled 42 in 2019, up from 28 in 2018, the law firm said.

The increase seems likely to continue, said Buddy Clark, partner at Haynes and Boone.

“I think the trend line should be moving up in the first half of 2020,” Clark said.

A total of 208 oil and gas production companies have filed for bankruptcy between 2015 and 2019, according to the report.

“This increase in year-over-year filings indicates that the reverberations of the 2015 oil price crash will continue to be felt in the industry through at least the first half of 2020,” Haynes and Boone said in the report.

The impact of new U.S. oil and natural gas production is being felt globally, Clark said.

“That’s why you can bomb a major oil facility in Saudi Arabia or kill an Iranian general or shut-in all Libyan oil production and prices don’t move,” he said.

READ: Oil Tankers Dawdle Off Libya’s Coast as Warlord Halts Exports

Thanks to a shale boom, the United States has become the world’s top oil producer, adding to a global surplus leading the market to shrug off September’s attacks on Saudi Arabia’s oil facilities, January’s U.S. air strike that killed a top Iranian commander, and this week’s disruptions to Libya’s crude output. [O/R]

Oilfield service companies were again hit hard with the number of bankruptcies nearly doubling from 12 in 2018 to 21 in 2019, the largest being the $7.4-billion filing by Weatherford International [WEATH.UL] in July.

Midstream companies that provide storage and pipelines to producers fared better with only two bankruptcies in 2019 out of a total of 28 since the beginning of 2015.

Reporting by Erwin Seba; Editing by Bill Berkrot and Marguerita Choy

Other articles you may find interesting

Copyright © 2019 PortandTerminal.com. All rights reserved. This material may not be published, broadcast, written or redistributed.

Check Also

Thomas Wilhelmsen, CEO of Wilhelmsen Group.

Shipping heir Thomas Wilhelmsen rejects buyout offers from cousins

PortandTerminal.com, September 20, 2020 OSLO, NORWAY – Last week, Norwegian daily Dagens Næringsliv reported that cousins and …

Flanked by other airline executives, American Airlines CEO Doug Parker speaks to reporters after meeting with White House Chief of Staff Mark Meadows in Washington, U.S., September 17, 2020. REUTERS/Kevin Lamarque

Airline CEOs plead with White House to avert massive looming U.S. job cuts

REUTERS, SEPTEMBER 17, 2020 WASHINGTON (Reuters) – White House Chief of Staff Mark Meadows met …