Whiting Petroleum this week opened the door of Chapter 11 filings but
will not be the only company to cross that threshold. As the US
upstream industry is heavily indebted, the current price environment is
likely to create the largest number of such filings in modern history in
2020, a Rystad Energy impact analysis shows, with more than 70 oil and
gas operators expected to be in trouble to meet interest payments at an
oil price of $30 per barrel of WTI crude.
As the Covid-19 pandemic and the global oil-price war continue to put
pressure on oil prices, the number of Chapter 11 filings could further
climb into triple digits with 150 to 200 cases in 2021 if a price level
of $30 WTI persists.
https://www.rystadenergy.com/newsevents/news/press-releases/heavily-indebted-us-upstream-industry-on-track-for-record-number-of-chapter-11-filings-in-2020/
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