A combination of business trends threatens a stranglehold on the oil and gas industries. Drilling activity has declined, the demand for increased supply due to falling prices has been less than expected, and oil prices have continued to fall even after people believed that they had stabilized.
Based upon a year-end 2015 report from Deloitte, oil prices during 2015 slipped to an 11-year low of $30 per barrel, and between mid-2014 and year-end 2015, 35 companies with cumulative debt of $18 billion filed for bankruptcy. Given the difficult issues associated with the oil and gas industries’ historically difficult business environment, it seems daunting to predict what will happen next.
Join SulmeyerKupetz Member Victor Sahn in a complimentary CLE-accredited webinar covering:
- Strategies the oil and gas companies who file reorganization cases are using to exit chapter 11.
- The issues facing companies filing reorganization cases.
- What the oil and gas industry can look forward to in 2016 and beyond, both in terms of potential additional insolvency proceedings and other approaches to preserve their businesses.
