Service companies lead energy bankruptcy filings so far this year

News Source: www.houstonchronicle.com...

Eight oil-field service companies with a combined $10.9 billion of debt filed for Chapter 11 bankruptcy during the first quarter, an increase over six companies during the fourth quarter of 2019.

I have friends in Houston who commonly have money that can barely cover bills and these company filings are the tip of the iceberg with regard to personal bankruptcies for the oil patch to the refining centers and bulk shipping except for storage and associated fees income for our region. We have lots of storage but it is filling fast as the entire system shuts down.

It's going to get ugly. Unless OPEC+ decide to stop producing oil (they won't), then storage units for oil will fill to capacity in about 3 months.

Quite a few downstream companies where told to stop pumping oil, as there is no where to put it.

I like how the President keeps mentioning he's working on a deal between Saudi Arabia and Russia so they can return to a state of profitability.

Like how exciting is that? I'm just bursting at the seems awaiting this deal to go through so I can pay more at the pump.🙄

Granted, this market will NEVER sort itself out without addressing the crude issue.

The oil industry as a whole, has had RECORD windfall profits since practically the beginning. There's always a fire, or a shutdown at some refinery, etc. when their balance sheet is threatened.

And don't get me started on scarcity and bs "peak oil"...

originally posted by: machineintelligence
News Source: www.houstonchronicle.com...

Eight oil-field service companies with a combined $10.9 billion of debt filed for Chapter 11 bankruptcy during the first quarter, an increase over six companies during the fourth quarter of 2019.

I have friends in Houston who commonly have money that can barely cover bills and these company filings are the tip of the iceberg with regard to personal bankruptcies for the oil patch to the refining centers and bulk shipping except for storage and associated fees income for our region. We have lots of storage but it is filling fast as the entire system shuts down.

Those would be fracking companies - this has been coming for a while - they are generally poorly run.