The Great American Oil & Gas Massacre: Bankruptcies Hit New Milestone as Bigger Companies Let Go | Wolf Street

But then came Phase 2 of the Great American Oil-and-Gas Bust in late-2018, with the price of WTI in the futures market eventually collapsing briefly to minus $37 a barrel in April 2020. In recent weeks, WTI has been hovering around $40 a barrel, at which the US oil industry is still burning millions of barrels of cash per day, so to speak:

A billion here, a billion there, and pretty soon…. The cumulative amount of secured and unsecured debts that the 490 US oil and gas companies disclosed in their bankruptcy filings from January 2015 through September 2020 has now jumped to nearly $300 billion:

The financial pressure on these companies is huge. For years, they’ve been cash-burn machines that need a constant flow of new investor cash to keep going. They cannot go on without more investor cash to burn. Once the new money stops fueling operations and debt service of the old money, these cash-burn machines grind to a halt. They burned the cash in their operations, and now are left with too much debt. Even a higher price of oil isn’t going to save them. They should restructure and hose their creditors and wipe out their stockholders and go on.

The Great American Oil & Gas Massacre: Bankruptcies Hit New Milestone as Bigger Companies Let Go | Wolf Street

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  1. Pingback: Abandoned Oil Tanker with 1.3m barrels Sinking due to Criminal US Sanctions – The Free

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