36514
One-Third of Oil Firms Facing Bankruptcy
Energy

One-Third of Oil Firms Facing Bankruptcy

Roughly a third of oil producers are at high risk of slipping into bankruptcy this year, as low commodity prices crimp their access to cash and ability to cut debt, according to a study by Deloitte, auditing and consulting firm. The report, based on a review of more than 500 publicly traded oil and natural gas exploration and production companies across the globe, highlights the deep unease permeating the energy sector as crude prices sit near their lowest levels in more than a decade, eroding margins, forcing budget cuts and laying off thousands, Reuters reported. The roughly 175 companies at risk of bankruptcy have more than $150 billion in debt, with the slipping value of secondary stock offerings and asset sales further hindering their ability to generate cash, Deloitte said in the report released on Tuesday. The Deloitte study found that oilfield service providers, which provide staffing and equipment needed to drill wells, are filing for fewer bankruptcies than producers. Of the 53 US energy companies that filed for bankruptcy last quarter, only 14 were service providers.

 

Short URL : http://goo.gl/TVzGcq
  1. http://goo.gl/CHPaxi
  • http://goo.gl/rXcLrc
  • http://goo.gl/Dv6e1d
  • http://goo.gl/b0xp28
  • http://goo.gl/T90g6R

You can also read ...

Venezuelan Refineries in Danger of Seizure
In 2007, following Venezuela’s expropriation of billions of...
China Tariffs to Darken Prospects of US LNG
This winter could be a bleak one for America’s natural gas...
Chevron to Develop Iraqi Oilfields
Iraq’s state-run Basra Oil Company and Chevron, an American...
Caspian Convention Can Help Boost Iran Oil, Gas Exports
The Convention on the Legal Status of the Caspian Sea will...
Spanish Esproenko to Continue Iran Business
Esproenko International, which specializes in oil and gas...
NIGC Export Capacity at 75 mcm Per Day
The National Iranian Gas Company’s capacity to export natural...
OPEC Should Remain Independent, Apolitical
Some members of the Organization of Petroleum Exporting...
Higher Electricity Tariffs Should Moderate Usage
Imposing higher tariffs on those who exceed fair consumption...

Trending

Googleplus