Oil and gas producers ‘in distress’ as low oil price pain continues
by David Hellier from on (#14JF0)
Many US producers borrowed heavily and cheaply to cash in on the shale boom, but prices of around $30 a barrel are now causing severe difficulties
Low oil and gas prices are close to triggering a wave of bankruptcies and debt defaults among US producers, investors fear. The fall in the oil price to levels that are punishingly low for producers is putting up to $88bn of borrowings potentially at risk.
About 30% of the oil and gas industry's debt is now said to be at distressed levels - meaning companies are experiencing financial or operational problems severe enough to put them at risk of default or bankruptcy.
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