After the costliest Chapter 11 year in history, 2021 bankruptcy numbers will normalize if WTI keeps up
in
28/01/2021
The combined debt of North American E&P and oilfield service companies that filed for Chapter 11 bankruptcy protection last year jumped to $102 billion, surpassing the $100 billion mark for the first time, a Rystad Energy analysis of Haynes and Boone data shows. While the number of filings was lower than in the 2016 downturn, the average debt of the 108 companies that filed for Chapter 11 was almost twice as high at a record $940 million.
Last year was arguably the most devastating year in history for the North American oil and gas industry. Even so, Rystad Energy’s analysis concludes that 2020’s round of Chapter 11 filings fast-tracked an overdue reduction in the number of market participants by removing troubled companies and allowing their healthier competitors to remain in the playing field.