Oil Bankruptcies Reach Highest Quarterly Level Since Recession

http://www.bloomberg.com/news/articles/2015-12-24/oil-bankruptcies-reach-highest-quarterly-level-since-recession

Bankruptcies among oil and gas companies have reached quarterly levels last seen in the Great Recession, according to the Federal Reserve Bank of Dallas.

At least nine U.S. oil and gas companies that accounted for more than $2 billion in debt have filed for bankruptcy in the fourth quarter, the bank said Wednesday in its energy economic update for the final three months of the year.

"Lower oil prices have taken a significant financial toll on U.S. oil and gas producers, in part because many face higher costs of production than their international counterparts do," according to the note written by Navi Dhaliwal, a research assistant, and Martin Stuermer, a research economist. "If bankruptcies continue at this rate, more may follow in 2016."

Since peaking in October 2014, U.S. oil and gas employment has fallen by 70,000 jobs, the analysts wrote in the report.

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4 replies	Author	Time	Post
Oil Bankruptcies Reach Highest Quarterly Level Since Recession (Original post)	marmar	Dec 2015	OP
"That was easy." - OPEC	KeepItReal	Dec 2015	#1
It has in no sense been "easy" for OPEC	FBaggins	Dec 2015	#4
Still record profits for Marathon.	safeinOhio	Dec 2015	#2
They bought out Hess here...	Historic NY	Dec 2015	#3

Response to marmar (Original post)

Fri Dec 25, 2015, 10:20 AM

KeepItReal (7,761 posts)

1. "That was easy." - OPEC

Hope these firms' owners banked those profits while they could.

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Response to KeepItReal (Reply #1)

Fri Dec 25, 2015, 08:08 PM

FBaggins (21,274 posts)

4. It has in no sense been "easy" for OPEC

They're having serious internal strife.

It's worth noting that they produce in excess of 30 million barrels of oil per day and the price of that oil has declined more than $70 for each of those barrels since they started this strategy.

It's hard to say that companies going bankrupt with ~$2 Billion in debt is a big victory for OPEC when they're collectively losing almost that much every single day compared to less than two years ago.

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Response to marmar (Original post)

Fri Dec 25, 2015, 10:53 AM

safeinOhio (22,379 posts)

2. Still record profits for Marathon.

Though their retail business, Speedway, they still set the retail price.

google "speedway effect"

With price/barrel dropping like a rock last month, they would still jack the price of gas up a dime or two every few weeks, then drop it a penny every two days or so.

This is the DU member formerly known as safeinOhio.

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Response to safeinOhio (Reply #2)

Fri Dec 25, 2015, 11:02 AM

Historic NY (33,954 posts)

3. They bought out Hess here...

but they're getting the Quick Check blitz.....who will drop fuel 3-4 cents in one day. Speedway gave out 10 cent off a gallon cards when the came here that lasted 2 months. Cumberland Farms on the other main highway is taking a whack at them too and they still have the discount card pricing. Its going to be a costly education for them.

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