If you think the COVID-19 pandemic has lasted a long time, talk with a U.S. producer about the depressed energy capital markets. As Americans sat down for their Thanksgiving dinner in 2014, the Saudis declared they would no longer act as swing producer to prop up world oil prices, and the price of crude oil dropped 10% before the pumpkin pie hit the table. Producers and their lenders have been suffering under a pandemic of world energy prices ever since.
As reported in Haynes and Boone, LLP’s December 2020 “Oil Patch Bankruptcy Monitor,” more than 250 oil and gas producer bankruptcies have been filed since January 2015. Combined with midstream and oilfield service Chapter 11 filings since 2015, more than 500 bankruptcies have been filed.
Excerpted from Hart Energy. To read the full article, click here.